As Many As 50,000 California Jobs Are at Stake if NUMMI Plant Closes

Friends of NUMMI Urges Toyota and California Officials To Continue Operations at Fremont Automotive Plant

FREMONT, CA - August 24, 2009: News surrounding the potential closure of the New United Motor Manufacturing, Incorporated (NUMMI) plant in Fremont, California has escalated following reports that Toyota Motor Corporation will be making its decision by the end of the month concerning the potential closure of the plant and moving the production out-of-state and/or out-of-country. Even with the economic downturn, California continues to be Toyota's largest market for auto sales. And while there are currently 4,600 jobs at the NUMMI plant in immediate risk, the closure can actually lead to the demise of up to 50,000 jobs throughout the state of California among suppliers and local businesses that have worked dynamically to support the automotive plant for the past 25 years.

In 1984, NUMMI started as the pioneering joint venture of General Motors Corporation and Toyota Motor Corporation. Established in Fremont, NUMMI helped change the automobile industry by introducing the Toyota Production System and a teamwork-based working environment to the United States. Today, the plant employs more than 4,600 workers and utilizes the resources and materials of more than 1,000 suppliers based in California (totaling 50,000 jobs) to produce more than 400,000 vehicles each year.

To date, Toyota has never closed a factory in the U.S. or abroad. According to a recent article in the Wall Street Journal, dated August 19, 2009, "A closure could also raise questions over Toyota's commitment to stable employment. Mr. Toyoda and his new top managers have pledged not to close any Toyota plants amid the global economic downturn." In addition to the loss of jobs and resources, Toyota is at risk of spending hundreds of millions of dollars in potential closure and environmental clean-up costs.

Friends of NUMMI - a group of families, workers, suppliers and local businesses that will be affected by the closure - is urging local, state and federal officials to persuade Toyota and the newly reorganized General Motors Co. to consider the total loss in jobs, the impact on suppliers, local businesses and families that will be devastated by the plant's closure, as well as the impact on the already distressed economy. In addition, the closure will lead to substantial losses in local and state revenues and employment taxes; it will increase property foreclosures which will lead to a drop in attendance in local schools due to affected families requiring relocation, and significantly increase the unemployment claims - significant concerns that California's struggling economy can't afford.

Share support for the NUMMI workers, families, suppliers and local businesses at www.friendsofnummi.org