Sunday, July 26, 2009

Toyota closing the NUMMI plant

It seems that after the pull out of GM, Toyota is considering 'closing' the NUMMI plant. See the link.

http://www.nytimes.com/2009/07/25/business/global/25toyota.html?_r=1&hpw

The article says it all actually. Workers have willingly given suggestions because they have been guaranteed jobs. And when one facility is closed the motivation in others is surely going to take a hit.

My take is that there is something more than what is in print in this case. I still feel that Toyota can definitely bear the loss making plant for around a year at least. May be this is a ploy to get the unionised workers to the bargaining table. Maybe it could be to prompt the government to dole out sops.

That the plant was a joint venture with GM, and it survived so long is itself a surprise in a way. GM and Toyota have totally different cultures. Now with GM gone, Toyota should have been very happy. So, this announcement of 'closing' comes as a surprise. Somehow I cannot see this happening. We can wait and watch, the drama should climax soon.

No comments: