Battle brewing to save Toyota's California plant
A battle is brewing to save the only automotive plant still operating on the west coast of the United States after General Motors pulled out of a joint operating venture with Toyota.
The Japanese automaker has not yet announced whether it will continue to run the Fremont, California plant or phase it out and shift production of its popular Corolla sedan and Tacoma pickup truck elsewhere.
But it has warned that closing the plant is a distinct possibility as it struggles to cut costs after falling into the red for the first time in nearly 70 years, with a whopping 436.9 billion yen (4.6 billion dollars) net loss for the year ending in March.
"We are carefully evaluating our options with respect to the NUMMI joint venture as a result of General Motors' actions," Toyota spokesman Mike Michels said.
"That could, but not necessarily would, involve closing the plant. But at this time there has been no determination."
Toyota has never been responsible for closing an assembly plant anywhere in the world, so this could be a first for the world's largest automaker.
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