Toyota Motor Corporation Ends NUMMI Contract

By: Andy Hodges
Staff Writer
Published: Aug 28, 2009

Toyota Motor Corporation Moves Popular Production Facilities

What started as auto industry buzz has now been confirmed by the Toyota Motor Corporation. Toyota will end its Corolla and Tacoma production agreement with New United Motor Manufacturing, Inc. as of March 31, 2010. The automaker will shift Toyota Tacoma trucks to a facility in San Antonio, Texas. Production for the Toyota Corolla will move to Cambridge, Ontario, Canada.

"Toyota conducted a thorough review of its alternatives in light of current and anticipated market conditions. Based on this review, we have determined that over the mid to long-term, it just would not be economically viable to continue the production contract with NUMMI," Toyota Executive Vice President Atsushi Niimi said in a statement. Niimi also said that the decision will help move more vehicles to dealers and consumers in North America. NUMMI had the agreement with Toyota for more than 25 years.

NUMMI is currently based in Fremont, California and was established in 1984 where it entered a joint venture with Toyota and General Motors. General Motors also canceled its agreement with NUMMI when it decided to end production for the Pontiac. The decision was also part of GM's bankruptcy reorganization.

The times are changing for automobile manufacturers as a new Hybrid industry is booming. Consumers are demanding more fuel efficient vehicles to help save money on gas. Hybrid vehicles can more than double the average MPG rating in comparison to conventional automobiles. The auto industry is also in a race to provide alternative fuel cars that can run on electric.

Most of the new hybrid cars coming to market next year will have plug-in solutions. This means that consumers will be able to use a home standard outlet to refuel their vehicles. In addition, utility companies are preparing to connect to the national grid, which will supply additional energy to local communities and public recharging stations.

Toyota is one of the leaders in the hybrid race. The new 2010 Toyota Prius offers more than 50 miles per gallon as a full hybrid vehicle. The 2010 Prius also has a new Solar Panel Ventilation system that is completely powered by the sun. When the car is parked in direct sunlight, an electric fan will turn on to cool the interior once it reaches 86 degrees. The system is powered by the solar panels.

In addition to moving Corolla and Tacoma production, Toyota will move production for the Highlander SUV to Indiana in October. Toyota Motor Corporation currently produces the Avalon, Camry, Corolla, Matrix, RAV4, Sienna, Sequoia, Tacoma, Tundra, Venza and the Lexus RX 350 in North America.