
In late August 2009, Toyota announced that it would close its New United Motor Manufacturing Inc. (NUMMI) factory in Fremont, California at the end of March. The plant had been a joint venture of the company and General Motors until June, when GM withdrew.
Almost six months later, in the wake of a series of Toyota product recalls, and roughly seven weeks before the plant's scheduled shutdown, the UAW and the AFL-CIO on Friday began an attempt to gin up a campaign to convince the company to reopen the plant, and to encourage the public to refuse to buy its products it if doesn't.
Since there is virtually zero chance of the plant remaining open (the company said at the time of the closure that "it will close the plant, regardless of financial incentives offered by the state"), you'll have to excuse me if I question the overall timing, and even if there might be just a wee bit of government and union coordination going on here -- especially given some of the people involved and some of the statements made at a rally outside the plant and at the UAW's nearby union hall yesterday.
In terms of press coverage of yesterday's events, you have to wonder if Brooke Donald of the Associated Press and George Avalos of the Oakland Tribune were actually in the same place. Donald's AP coverage made what was going on appear relatively benign, while Avalos included important details to the contrary.
Here are key paragraphs from the AP's Donald:
Amid Toyota recalls, workers rally to save CA jobs
Dozens of workers rallied Friday to save a Northern California auto plant where more than 4,600 people could lose their jobs if Toyota stops production at the end of March.
Labor leaders said closing the New United Motor Manufacturing Inc. plant - the sole remaining automobile assembly plant in California - would be the worst thing Toyota could do while it struggles to regain consumer confidence after several recalls.
"Killing American jobs won't help Toyota regain public support or revive its sales. Toyota must reverse its decision," said AFL-CIO President Richard Trumka.
In recent weeks, Toyota's reputation has been hurt by the global recall of 8.5 million vehicles and questions about how quickly the giant automaker responded to safety problems.
.... The demonstration kicked off a nationwide campaign urging the Japanese carmaker to save the plant, said Bob King, vice president of the United Auto Workers. The rally was held inside a nearby union hall.
At the rally, Lockyer announced the formation of a commission to study the impact of the pending closure on California's economy.
Two quick points:
- If his concern was legitimate, Lockyer would have formed his precious commission last fall, not 45 days or so before the scheduled end of the plant's operations.
- Given its withdrawal from the arrangement, why isn't this closure as much GM's fault as Toyota's? Why weren't the UAW and AFL-CIO protesting in Detroit when GM pulled out, making the plant's continuation economically unfeasible without replacement production?
Avalos's Oakland Tribune coverage, unlike Donald's, pointed out several more confrontational elements at the event and in Big Labor's plans (bolds are mine):
Union workers rally to save NUMMI plant
Hoping to cajole Toyota into a rescue of the imperiled NUMMI auto factory here, union leaders launched a nationwide effort Friday that will include picketing at the embattled manufacturer's auto dealers.
The new campaign by members of the United Auto Workers and other labor groups comes as Toyota is reeling from multiple safety and quality miscues.
A crowd that crammed into a big union hall across the street from the New United Motor Manufacturing Inc. plant in Fremont chanted and cheered a series of speakers, including Sergio Santos, president of United Auto Workers Local 2244, which represents UAW members at the NUMMI complex.
"We want the company to review and reverse its decision to close our factory," Santos said.
Others who spoke included top officials from the UAW, the AFL-CIO and the Teamsters Union.
... "We will take this fight to every Toyota dealership in California," Richard Trumka, president of the AFL-CIO, said via a videoconference link. "Our message is that Toyota kills American jobs. This comes at a time when Toyota can ill afford another black eye."
The union leaders unveiled a banner that morphed the Toyota symbol into a skull.
"If they close the NUMMI plant, we union people will not buy another Toyota," said Bob King, UAW vice president.
... "You are going to see an attack on Toyota that is unprecedented," said Rome Aloise, a top Teamsters official.
I guess Brooke Donald just didn't have it in her to report the truth about what the thuggish side of how organized labor acts when it doesn't get its way, and apparently believes that readers and listeners at her organization's subscribing outlets should be shielded from learning about it. Fortunately, Mr. Avalos didn't report things that way.
Cross-posted at BizzyBlog.com.
—Tom Blumer is president of a training and development company in Mason, Ohio, and is a contributing editor to NewsBusters
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Comments Policy
Government Motors
Sat, 02/13/2010 - 12:18 ET by ptsonGovernment Motors is in the process of destroying its largest competitor. THIS is the way they do business (and politics) in Chicago. Still, I encourage everyone to boycott GM and Chrysler and buy Ford. (Sadly, they will also be targeted soon.)
Re Gummint Motors
Sat, 02/13/2010 - 13:58 ET by slickwillie2001Agree, this will not turn me off Toyota or Nissan or Ford, in fact it makes me even more determined to never do business again with Government Motors. This is about the survival of free enterprise and fighting fascism as much as it is about cars.
Slickwillie, I agree
Sat, 02/13/2010 - 14:33 ET by ConservativeRexSlickwillie, I agree 100%. I already own a Toyota and plan on buying a new truck this spring. I will never buy another Government Motors vehicle of any stripe. The last brand new GM I bought was a 1981 Silverado, the transmission went out at 61K miles!! And I hadn't towed a durn thing with it. Or hauled anything heavier than a weeks worth of groceries in it. You get burned like that and you learn pretty fast. I was never going to buy another GM before the government took them over so it's pretty easy now.
Si Vis Pacem, Para Bellum
I am glad to see this
Sun, 02/14/2010 - 00:25 ET by MaximusBraveheartI am glad to see this getting coverage. I agree with Ptson. This is a dangerous abuse of government power going after Toyata like they have. Totally inappropriate and unprecedented. I said GM would go under w/ the bailout, so why do it. Sure enough that is what happened. One huge case of theft from the American public. When you suck the life out of your company you don't deserve a payout. You lose everything like any other "normal" company would have. That is YOUR incentive to work hard and care about the company and not just how much you can get away with. I am sure there are plenty of good union workers but it does not take a lot of bad apples to kill the quality of the brew. From my experience unions tolerate and even love those that were not good employees. Is it hard to imagine that causing a problem down the road? M-B
Tom, You Own a Toyota Dealership or Something?
Sat, 02/13/2010 - 13:17 ET by BW222Tom, you really seem obsessed with the media treatment of Toyota. Anyone who follows the industry closely realizes Toyota quality has slipped badly in recent years as it tried to do too much too fast.
Unlike Honda, Toyota has not maintained its quality standards. There is a new Toyota recall daily. Yesterday's was 8,000 Tacoma trucks. You don't recall 8 million vehicles within a few weeks unless you have real design and/or quality problems.
Hyundai and Ford have made major quality improvements. GM has improved some. Chrysler is a basket case.
For years, the "Detroit Three" have been hammered by the media because of quality and recalls. The media ignored it two years ago when Toyota was the U.S. leader in recalls. The Teflon image has finally worn off.
BW222
I'm obsessed ....
Sat, 02/13/2010 - 14:18 ET by Tom Blumer.... because I notice the media's obsession with Toyota.
Spare me, and feel free to continue to comment on the substance of the post.
Remember the Media Obsession with Explorer?
Sat, 02/13/2010 - 15:01 ET by BW222Ten years ago it was all about the Ford Explorer and the Firestone tire blowouts in the media and rightly so. This is the biggest vehicular problem in terms of fatalities since that. The Explorer problem involved a single line. Toyota's recent problems cross far more lines and 8 million vehicles and the problems are worldwide.
If you've read Edmunds or Automotive News, you're not surprised Toyota is having quality issues. Consumer Reports has downgraded its Toyota ratings in recent years.
I have a friend in the direct mail business. He said 18 months ago Toyota was targeting "Detroit Three" owners during the Congressional bankruptcy hearings. Today he is working overtime as the "Detroit Three" (and Hyundai and Honda) target Toyota owners.
Payback is a b!tch.
BW222
A documented list of deaths actually caused ....
Sat, 02/13/2010 - 16:32 ET by Tom Blumer.... by the gas-pedal problem would be welcome.
Also welcome would be an acknowledgment that the gas-pedal problem has to do with what was made at a UAW plant in Elkhart, IN, while there have been no equivalent problems with the same items made by a Japanese company named Denso. Imagine that.
It Toyota has a problem, it may be that it subcontracted too much work to UAW-represented plants.
~Tom
Sat, 02/13/2010 - 16:39 ET by choselife4xRemember SideShow and his 'it isn't really Christmas shopping" obsession? This is the same guy coming back to needle you some more with a different name.
"my solution is to destroy children"--mamabear's cure for poverty 12/08/09
UAW
Sat, 02/13/2010 - 13:49 ET by okiehawk44I live in Florida with a whole lot of former UAW workers who have retired down here after working for obscene wages and benefits often for putting a bumper on a car for 30 years. They brag about it like it takes a PhD to do that -- totally disconnected from the real world and real work for that matter.
They will proudly tell me that the UAW got them this or that but they don't take any responsibility for killing the goose that laid the golden egg with the noncompetitive wage structure manufacturers have been saddled with in America.
Unions do not make companies more competitive -- just the opposite.
Randian musing...
Sat, 02/13/2010 - 14:41 ET by Anneke9Toyota = Reardon Steel
Camouflage conservative in Baghdad-by-the-Bay
It wouldn't surprise me to
Sat, 02/13/2010 - 15:50 ET by fitzfongIt wouldn't surprise me to learn that this is a case of the union hacks "spitting in the food" to make themselves appear to be the solution to a problem...when they are the problem.
"I spent a lot of money on booze, birds and fast cars. The rest I just squandered." -George Best
Disgusted with Blumer
Sat, 02/13/2010 - 16:37 ET by gooberd69As a conservative, I'm disgusted with this Blumer guy. Every blog entry he writes appears to root for the demise of GM and Chrysler.
The other day it was some jibberish about GM targeting Toyota customers. He cheers when sales are down. Financial losses? Yippee!!
I wasn't for the bailout of either company. However, I'm not actively rooting for the demise of them.
matt
~Oh look, a five week wonder
Sat, 02/13/2010 - 16:42 ET by choselife4xPretending to be a conservative. Troll on, hack.
"my solution is to destroy children"--mamabear's cure for poverty 12/08/09
Well, looky here! A troll that even admits he's a goober...
Sat, 02/13/2010 - 16:52 ET by R D Helm...before I even have to come in here and tell him he is.
ROFL!
-Dave
Thanks, Obama.
If by conservative hack,
Sat, 02/13/2010 - 16:59 ET by gooberd69If by conservative hack, you are referring to the fact that I did not support any of the bailouts when Bush started and Obama expanded, yes - I guess I'm a hack. If you're referring to the fact that I believe Republicans pretty much governed like drunken sailors (or democrats), and the Democrats have governed much, much worse, yes - I guess I'm a hack.
You see Junior...just cause some "Conservative" journalist writes an opinion piece, I'm not going to necessarily agree with him or her just because they claim conservatism. But I guess that makes me a 'troll'.
~What makes you a troll
Sat, 02/13/2010 - 17:14 ET by choselife4xis putting air quotes around conservative while referring to a writer on this site.
Why don't you just put a bell around your neck and stand on the street corner wearing nothing but a placard, you'd be less obvious.
"my solution is to destroy children"--mamabear's cure for poverty 12/08/09
I guess I could learn
Sat, 02/13/2010 - 17:43 ET by gooberd69I guess I could learn something from you. I need to be in 100% agreement with everything written here...otherwise I'm a troll.
The fact that I think Obama, Pelosi and Reid are jokes is irrelavent. I don't want GM to fail...so I'm a 'troll'. Thanks for the schooling junior.
~Aww
Sat, 02/13/2010 - 18:01 ET by choselife4xYour straw man was purdy, why'd you knock it over so hard? It's all dirty now..
Since you think I'm schooling you.... it's 'irrelevant'.
You're welcome, grasshopper. Troll on.
"my solution is to destroy children"--mamabear's cure for poverty 12/08/09
It's not a question of if
Sat, 02/13/2010 - 22:01 ET by fitzfongIt's not a question of if GM is going to fail, it's a question of when. We didn't bail out the car companies, we bailed out the unions that brought them down. Bailing these parasites out is only delaying the inevitable. In light of this, there is absolutely NOTHING wrong with rooting for the demise to happen sooner rather than later.
"I spent a lot of money on booze, birds and fast cars. The rest I just squandered." -George Best
I would suggest you reserve your "disgust" for other things
Sun, 02/14/2010 - 08:36 ET by Tom BlumerYour disgust would be better directed at a government that:
- Illegally ripped off and intimidated Chrysler's non-TARP secured lenders.
- Illegally ripped off GM unsecured bondholders by giving another unsecured creditor, i.e., the UAW's VEBA favorable treatment.
- Promised Saturn customers and dealers that it would find a buyer, had a buyer (Penske) for whom they promised to continue production of existing Saturn models for a couple of years so Penske could fund his new car ideas, and pulled the plug at the last minute for no apparent reason other than being afraid of a potential competitor. That killed a deal that would have brought in billions.
- Is STILL at the government trough. Having done another last-minute killing of a deal, this time to get rid of Opel in Europe, they now have a reorg plan for it that it says will require government aid to work.
- Won't allow the release of real financial statements of GM until (maybe) late March, and claims that it's doing us a favor by releasing anything at all, because after all, GM is technically a "private" company.
- Apparently won't even contemplate releasing separate financial results with full disclosures for Chrysler.
The only conceivable reason to "root" for either company would be if they were conducting themselves as Chrysler and Iacocca did 30 years ago when they were using government-provided capital. Neither has done so during this entire process, and it's pretty clear that neither ever intends to.
Since this is a media bias site, most of what I chronicle here is about how the establishment press treats GM and Chrysler like sacred cows. It consistently ignores GM's thuggishness, both companies' pathetic sales performances since the bailout, and the poll-evidenced/sales-evidenced fact that a large plurality of the American will not buy from them because they were bailed out.
→ But wait! There's more!
Sun, 02/14/2010 - 09:14 ET by Cool ArrowGM is now offering $1,000 (money they don't have) to any Toyota customer who will switch to GM
GMAC also turned itself into a bank so it could suck in bailout money while its parent corp, GM sucked in TARP money.
Yeah, we're way past "disgusting" with the GM/Chrysler boondoggle.
The government is using my money to enable bad business practices and bloodsucking unions.
So, let me see if I understand GM Today? ACA
Sun, 02/14/2010 - 09:17 ET by acaiguanaInstead of losing Xn on every car they sell now, they plan to lose Xn + $1000 on every car they sell in the future?
Sounds like a plan alright.
ACA
...
Quoted from: 'Acaiguana notes from the Underground' (Soon to be at theaters near you)
→ Sounds like a plan, huh?
Sun, 02/14/2010 - 09:24 ET by Cool ArrowMeanwhile, the government is on a smear campaign against Toyota.
I think a person could pick up 13% in 3 months investing in TM (Toyota Motors)
I understand it's a media
Sun, 02/14/2010 - 11:07 ET by gooberd69I understand it's a media bias site. The majority of the time you guys nail it.
- I'm with you on your first couple points - there were some shady deals that I thought would be found illegal as well, but the Supreme Court thought otherwise. I believe this was an Obama/UAW/GM deal that the MSM did not cover.
- You need to get your facts straight on the Saturn deal. Penske backed out at the last minute with GM when his other deal with Renault fell through to build vehicles past the deadline with GM. It was not GM walking away.
- GM has repaid some of the debt ahead of schedule and have more scheduled. I wonder how many blogs you have written on this.
That being said...
- Dollar wise, the banks and insurance industry received multitudes more in bailout/stimulus. Since they hold the majority of U.S. debt, there seems something much more nefarious going on here. The MSM has not covered this one either. Pound for pound, there is more in this story - I don't see you going after AIG or the banks with the same axe.
- For years the MSM treated the Big 3 as evil with the over-emphasis on producing gas-guzzling trucks/SUV's. As such, the publicity whore politicians focused on regulations which gave foreign competition the upper-hand. The big-3 have many problems of their own making, but the government caused viability issues as well.
Obviously it's just me...but I guess my biggest beef is when I read an AP article on Obama you can read between the lines and see the bias (with both the things they say and don't say). When I read your articles, I see a bias as well by what you focus on and by what you leave out.
Just my opinion and you obviously disagree...but I still love the site. I just see your articles as opinion pieces driven by 1/2 facts, 1/2 bias.
Saturn
Sun, 02/14/2010 - 12:28 ET by Tom BlumerI'm with you on your first couple points - there were some shady deals that I thought would be found illegal as well, but the Supreme Court thought otherwise.
No, the Supremes never actually rendered an opinion because the deals were too far down the road to stop.
You need to get your facts straight on the Saturn deal. Penske backed out at the last minute with GM when his other deal with Renault fell through to build vehicles past the deadline with GM. It was not GM walking away.
I know that's what was reported. I can tell you with confidence that what was reported isn't what really happened, and that what I stated happened really did.
As to the half-bias/half facts claim -- I have written elsewhere that I don't think capitalism-loving people can buy GM/Chrysler vehicles and stay consistent with those principles, so I'm not going to run away from that assertion. But that assertion doesn't make its way into NB posts, and I don't think you can challenge my core contention that the press has treated GM and Chrysler mostly with kid gloves since the government took control of them.
real reason
Sat, 02/13/2010 - 17:50 ET by Jerry MackHere in California we have very high personal taxes, 9 & 3/4 %sales tax, extreme property taxes, very high utility rates , ridiculous environmental laws including restrictions on 18 wheeler haulers. So when a company abandons their unionized plant in the largest market for their cars and increase their shipping cost there has to be a lot of reasons.
The best part of Mr. Blumers
Sat, 02/13/2010 - 19:12 ET by gooberd69The best part of Mr. Blumers post - the Chevy banner ad on the page offering 0% financing to Toyota/Lexus owners!
When did 2+2...
Sun, 02/14/2010 - 12:21 ET by retroconWhen did 2+2 stop equaling 4?
Fact: the US government regulates car companies that sell cars in the US.
Fact: the US government owns GM.
Fact: Toyota is a car company that sells cars in the US.
Fact: Toyota is a main competitor to GM.
So, Toyota is regulated by one of its main competitors.
Am I missing something here? Doesn't anyone in the Obamedia see a problem with this?
Oh, wait,the Obamedia want to be "owned" by the US gov, too.
Nevermind.
GM Payback Nonsense
Sun, 02/14/2010 - 12:34 ET by slickwillie2001The nonsense about a GM payback is a token gesture. What GM did is return a billion or two to the government that was in a pot available to them from the government that they had not used. In effect they cancelled a line of credit.
There are two GM's now, old GM and new GM. The old GM is a black hole into which most of the losses and bailouts were thrown, never to be recovered. The new GM ended up with very little of that debt on their books, so sometime in the next few years the Bamster, if he's still around, will be able to trumpet this as a great victory for their policies. We won't know the real truth because they no longer have to report according to SEC guidelines (and Chrysler). Old GM will be forgotten, swept under the carpet.
If you take all the profits GM made from 1972 until today, it doesn't add up to anywhere near the cost of the bailout of GM, which was around $60-70B. That money can never be paid back, not even close. The Bamster stole GM and Chrysler from stockholders and bondholders and gave them to the corrupt thugs at the UAW, that's the bottom line.