Monday, August 31, 2009

Toyota Closes Its First Plant in the U.S.

This was a joint GM-Toyota operation that employed around 4,700 in Fremont, California - not too far from where I live. It was also a UAW shop, and its closing further erodes whatever membership the union has left. According to the New York Times, there are now no auto plants in the United States west of San Antonio, Texas.

The car industry, a visible representation of the overall state of the world economy, has been riddled with excess capacity and debt for years. So in a sense, to restore profitability, companies need to liquidate. Within the United States, remaining production will increasingly congregate in non-union and low wage regions.

When one considers the multiplier effect, it is estimated that 40,000 jobs could be lost because of this plant closing.


1 Toyota to Close Union Plant in California - NYT

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