NUMMI Plant Closing - it's effect on California
Posted by Josh Burroughs on Fri, Mar 19, 2010 @ 01:22 PM
NUMMI (New United Motor Manufacturing, Inc), a partnership between General Motors (GM) and Toyota has been operating a manufacturing facility in the Bay Area's 4th largest city, Fremont, since 1982.
Losing a 5.3 million-square-foot facility that produces thousands of Toyota Corollas and Tacoma trucks will mean a $2 million drop in property tax revenue for Fremont. The layoffs of 4,700 plant employees and up to 25,000 at supplier companies statewide represents a loss of $1.4 billion in annual payroll and benefits.
What WILL be the cumulative effect of the closing of the NUMMI Plant in Fremont, California? Well, economists are still wondering that themselves....
Here are the numbers:
4,700: NUMMI workers who will lose their jobs
19,908: Additional jobs threatened statewide, including suppliers and service providers
$512 million: Plant’s annual payroll and benefits
$904 million: Payroll and benefits of other affected workers
$18 million: Amount state has given NUMMI for everything from infrastructure improvements to training money
DEVELOPERS: Be on the lookout! This site is 400 Flat Acres between 2 Freeways, and they've started to tour brokers. NUMMI has been pegged as a once-in-a-lifetime development opportunity. David Cropper, managing director for TMG Partners of San Francisco said, “This is frankly a once-in-a-lifetime opportunity. And you have a chance to develop it in the 21st century.” No hills, water, or infrastructure issues exist on the site.
Bruce Kern, executive director of the Economic Development Alliance for Business, has met with NUMMI officials, as well as city and state representatives, to discuss the future of the site. After being approached for the past two years by auto manufacturers from China, Korea and Europe and seeing their interest wane, he has “no sense” that the facility will be retooled for another manufacturer.”
Stay tuned for more updates....
-Josh
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