Re: Toyota to end Calif. joint venture with GM
Author: OldPoleBurner
Date: 07-24-2009 - 20:34
> If Toyota continues assembly work at the plant,
> nothing should change as a result, with the railroad.
That is still a huge "If". At least according to Bay Area news outlets, Toyota is still weighing their options as to whether of not they will operate the plant alone. Seems the Nummi Plant is more costly to operate than Toyota's other U.S. plants, primarily due to higher labor costs, higher real estate costs and taxes in California. On the other hand, the cost of retooling other plants to to take over Nummi's production is also cost prohibitive. It ain't a no brainer either way! I hope they keep it open.
But it seems to me there is another option for a joint venture to replace GM, that Toyota should consider. Indeed, our otherwise useless government officials should help broker the deal. Tesla is looking for land in the South Bay to build a new manufacturing plant - and even some "Stimulus money" to help that out. But instead of that, wouldn't it serve the public purposes of that money better for Tesla join with Toyota at Nummi. Tesla would then only have to pay for re-tooling an existing facility, rather than building all new.
So for about half the stimulus, we get double the bang - getting Tesla in production, while keeping Toyota in production. Not only that, but that should noticeably increase railroad business; not to mention all the support business that would be generated. Now there's a job stimulus package for you. Its certainly worth a try - anyhow!
OPB