Toyota Offers Millions to Workers at U.S. Plant Slated to Close

The $250 million support will provide bonuses to workers at the NUMMI plant that will close in April.

Toyota is offering $250 million to support workers at the New United Motor Manufacturing (NUMMI) plant which will be closing. NUMMI is a joint venture with General Motors where car production is set to end on April 1, after nearly 25 years in production.

GM pulled the plug on the venture last June after it emerged from a government-supported bankruptcy reorganization.

"Toyota's financial support is enabling NUMMI to offer bonuses to salaried and hourly team members who continue to produce quality vehicles for Toyota through April 1, 2010, when Toyota's production contract with NUMMI will end," the company said.

The company said the funding was subject to ongoing negotiations between NUMMI and the United Auto Workers union. The UAW represents some workers at the Fremont, Calif.-based facility.

Toyota announced in August it would end its production contract with NUMMI for Corolla cars and Tacoma pickup trucks on March 31 and shift production of the vehicles to Toyota wholly owned facilities.

Copyright Agence France-Presse, 2010

See Also
Experts: Don't Blame Lean Manufacturing for Toyota's Problems
What Went Wrong at Toyota?
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