Article

2009-08-28 Economy

Toyota thanks for the Clunker Biz now we pull the plug.

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Posted by 3dc 2009-08-28 10:02|| || Front Page|| [3 views ] Top

#1 The headline fails to make mention that GM bailed from the joint venture first.

Posted by Whiskey Mike 2009-08-28 10:22|| 2009-08-28 10:22|| Front Page Top

#2 While Toyota was the largest beneficiary of Cash for Clunkers (19%), more likely it was Silicon Valley's high wage structure and over regulated business environment was too much, even with the Fremont's plant's shipping advantage.

Posted by ed 2009-08-28 10:32|| 2009-08-28 10:32|| Front Page Top

#3 California's Unions support Liberal Democrats

California politics is overwhelmingly controlled by Liberal Democrats

California's militant Unions demand high wages and benefits

California Unions Public and Private, always support heavy State spending on Social Programs

California has the highest Business Taxes in the country

Toyota/GM closes California plant

I'm starting to see a pattern here

Posted by GolfBravoUSMC 2009-08-28 10:59|| 2009-08-28 10:59|| Front Page Top

#4 One article I read stated that in the 25 years that Toyota and GM were in that joint venture that the plant only made a profit 1 year (1991). If true it amazes me the plant didn't close 10 years ago. I suspect it was kept open to get a toe in the door, now that they have plants elsewhere and GM has pulled out they can leave as they should have done years ago.

Posted by tipover 2009-08-28 12:46|| 2009-08-28 12:46|| Front Page Top

#5 What this article does not mention is that Toyota is seeking refugee status moving from Stalinist California to that land of milk and honey free enterprise: Canada.

Posted by regular joe 2009-08-28 14:21|| 2009-08-28 14:21|| Front Page Top

#6 quibble

Fremont isnt the Silicony Valley, now is it? San Juaquin Valley, IIUC.

I dont know why they pulled out from there - IIUC deciding which vehicle to build in which plant is a fairly complex decision for automakers, including considerations of plant age, labor costs, transportation costs, plant size/capacity, etc, etc.

Posted by liberal hawk 2009-08-28 15:45|| 2009-08-28 15:45|| Front Page Top

#7 Fremont isnt the Silicony Valley, now is it? San Juaquin Valley, IIUC.

Fremont is right on the Bay, in Alameda County, with Oakland and Berzerkly.

Posted by DoDo 2009-08-28 15:55|| 2009-08-28 15:55|| Front Page Top

#8 Yes, it's at the northern end of Silicon Valley. It's been a favored living area for workers in Silicon Valley since the time I lived there in the late 70's - early 80's when I worked in the software industry in the Valley.

Fremont's also at the southern end of BART (regional rapid transit rail line) so it does send some commuters northward.

It's definitely not in the San Juaquin Valley, which is on the eastern side of the hills that border Fremont and which is part of the Central Valley agricultural area.

Posted by lotp 2009-08-28 18:20|| 2009-08-28 18:20|| Front Page Top

#9 Very often, for capital-intensive manufacturing, it's considerably cheaper to build new from the ground up than tear apart a fully built factory and rebuild around the new process and equipment. Or so it seems to me from things I've heard.

Posted by trailing wife">trailing wife 2009-08-28 18:52|| 2009-08-28 18:52|| Front Page Top

#10 Which part of Fremont? I lived in Mission San Jose, 87-95

Posted by Nimble Spemble 2009-08-28 19:40|| 2009-08-28 19:40|| Front Page Top

#11 You are correct TW. When you shut down an existing facility for a new program, you loose the existing production. Better to continue with the older production until the new plant is ready to roll.

I spent a week in 1980 working in the old GM Freemont plant back when they made Caprices and Chevy C1500s. Even then, they would only run whichever line enough employees showed up for work.

Spent one memorable evening down on the beach at Monterrey. Never been more drunk in my life. And we drove back to Freemont.

Posted by Skunky Glins 5***">Skunky Glins 5*** 2009-08-28 20:03|| 2009-08-28 20:03|| Front Page Top

#12 About a mile from Lake Elizabeth, NS, a block or two off of Paseo Padre. We left in '83.

Posted by lotp 2009-08-28 22:55|| 2009-08-28 22:55|| Front Page Top

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