California's last automobile plant closes

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werepossum

werepossum

Elite Member
Jul 10, 2006
29,873
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http://www.breitbart.com/article.php?id=D9EQEAHG0&show_article=1
FREMONT, Calif. (AP) - The last car has rolled off the production lines at California's sole auto plant.

Workers are trickling out of the New United Motor Manufacturing plant in Fremont as they complete their tasks and the plant readies to shut down.

Nearby, job centers have been set up to help the newly unemployed figure out benefits, retraining and other options.

The plant made Toyota Tacoma trucks and Corolla sedans. The last Tacoma rolled off the assembly lines last week, and Corolla production ended Thursday.

The plant began 25 years ago as a joint venture between Toyota Motor Corp. and General Motors Co. GM pulled out last year, and Toyota later announced it would halt production, eliminating about 4,700 jobs.

State officials are pursuing federal grants to help those impacted by the closure.
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Meanwhile, Volkswagen is building a new plant here in Chattanooga, TN. Since most people would consider a state sandwiched between the mountains and the beach to be an ideal place to live, I think it's safe to assume that California's tax rate, regulatory climate, and/or work ethic have played a part in the demise of its manufacturing industry. (Or perhaps the Japanese dislike learning Spanish . . .)

Anyway, sucks to be California.
 
Slew Foot

Slew Foot

Lifer
Sep 22, 2005
12,379
96
86
You have to pay workers a ridiculous amount of money to work in the Bay Area, a house in fremont runs 3-500 per sqft. You can build the same cars and pay people much less for the same standard of living in tenessee.
 
Patranus

Patranus

Diamond Member
Apr 15, 2007
9,280
0
0
Slew Foot said:
You have to pay workers a ridiculous amount of money to work in the Bay Area, a house in fremont runs 3-500 per sqft. You can build the same cars and pay people much less for the same standard of living in tenessee.
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Yup. California really did it to themselves.
 
T

theevilsharpie

Platinum Member
Nov 2, 2009
2,322
14
81
Slew Foot said:
Because 300 million people have what it takes to be a innovator
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The people that don't have what it takes are in a very unfortunate position, as someone in China willing to work for $5 a day is just as capable of screwing a bolt on as someone in Michigan that asks $160 a day for their labor.
 
Patranus

Patranus

Diamond Member
Apr 15, 2007
9,280
0
0
theevilsharpie said:
The people that don't have what it takes are in a very unfortunate position, as someone in China willing to work for $5 a day is just as capable of screwing a bolt on as someone in Michigan that asks $160 a day for their labor.
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Exactly. Jobs that require ZERO skills (entry) are demanding high hourly wages.
 
sandorski

sandorski

No Lifer
Oct 10, 1999
70,697
6,257
126
Ronstang said:
Something you do just by getting out of bed each day. You seem to be a real waste of space. I guess you are a government employee at best.
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You clearly are unaware of both recent History and the history of that Plant.

I reiterate, Fail, because it is.
 
S

ShawnD1

Lifer
May 24, 2003
15,987
2
81
werepossum said:
Meanwhile, Volkswagen is building a new plant here in Chattanooga, TN.
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Why don't they build these things in Mexico? I thought the whole point of NAFTA was to create free trade. If Mexicans are willing to work for less in the US, they probably also work for less in Mexico.
 
T

theevilsharpie

Platinum Member
Nov 2, 2009
2,322
14
81
ShawnD1 said:
Why don't they build these things in Mexico? I thought the whole point of NAFTA was to create free trade. If Mexicans are willing to work for less in the US, they probably also work for less in Mexico.
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I'm guessing that physical proximity to key suppliers and the political instability in Mexico are the major reasons.
 
her209

her209

No Lifer
Oct 11, 2000
56,336
11
0
sandorski said:
You clearly are unaware of both recent History and the history of that Plant.

I reiterate, Fail, because it is.
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According to this article, the plant is closing because GM fell through on its partnership and without GM, would be overcapacity and too expensive to operate.
 
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P

piasabird

Lifer
Feb 6, 2002
17,168
60
91
Wait till the new Cafe standards i.e. 35 mpg for the fleet come into effect. The only way this could ever happen is if a lot of smaller cars that can get 45 mpg or more are produced. There are a few ways this could happen. Hybrids could become more available and maybe economy of scale could make them less expensive. cars could become smaller and lighter (More plastic and aluminum) and they would be not as safe; i.e. more people would die. Lastly new materials that are more expensive but lighter and stronger could start showing up in cars.

On the other hand maybe electric car technology could produce a better engineered car. When you design a car to be electric rather than take a non-electric car and just change the design to use electric technology, the design may make leaps in efficiency and better technology may be developed.

One problem with Cafe standards is that it is very difficult to make trucks that can haul heavy payloads and get better gas milage. However, many people choose to own trucks because they often just want to move stuff. Maybe truck rental facilities will become more prevalent and less trucks will be made overall.

I think the automotive market will improve over time however, having more states with lower taxes may cause the plants to show up in other states. This is what happens when your state becomes unattractive to developers and investors. The liberal tax and spend idealogy causes you to lose jobs. Maybe you need to rethink that kind of philosophy to attract more jobs. One problem is people in California just expect higher wages and there are other states that are more financially attractive to manufacturing. Who knows how things will change.
 
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boomerang

boomerang

Lifer
Jun 19, 2000
18,883
641
126
piasabird said:
Wait till the new Cafe standards i.e. 35 mpg for the fleet come into effect. The only way this could ever happen is if a lot of smaller cars that can get 45 mpg or more are produced. There are a few ways this could happen. Hybrids could become more available and maybe economy of scale could make them less expensive. cars could become smaller and lighter (More plastic and aluminum) and they would be not as safe; i.e. more people would die. Lastly new materials that are more expensive but lighter and stronger could start showing up in cars.

On the other hand maybe electric car technology could produce a better engineered car. When you design a car to be electric rather than take a non-electric car and just change the design to use electric technology, the design may make leaps in efficiency and better technology may be developed.

One problem with Cafe standards is that it is very difficult to make trucks that can haul heavy payloads and get better gas milage. However, many people choose to own trucks because they often just want to move stuff. Maybe truck rental facilities will become more prevalent and less trucks will be made overall.

I think the automotive market will improve over time however, having more states with lower taxes may cause the plants to show up in other states. This is what happens when your state becomes unattractive to developers and investors. The liberal tax and spend idealogy causes you to lose jobs. Maybe you need to rethink that kind of philosophy to attract more jobs. One problem is people in California just expect higher wages and there are other states that are more financially attractive to manufacturing. Who knows how things will change.
Click to expand...
Technology evolves over time in the auto industry. It's difficult to make cars smaller and lighter when crash requirements are becoming more stringent. Cars are made from the materials they are because of economies of scale and safety.

Will all this change and improve over time? You bet. Does there need to be legislation to make it happen? You bet.

The people that make the rules know nothing about manufacturing anything. They legislate. They pass laws. It's not their problem how compliance is obtained.

The good news is that all the auto manufacturers must meet whatever requirements legislators deem necessary. The playing field is level. The bad news is that the purchasers get to foot the bill.
 
H

heyheybooboo

Diamond Member
Jun 29, 2007
6,278
0
0
werepossum said:
http://www.breitbart.com/article.php?id=D9EQEAHG0&show_article=1


Meanwhile, Volkswagen is building a new plant here in Chattanooga, TN. ....

I think it's safe to assume that California's tax rate, regulatory climate, and/or work ethic have played a part in the demise of its manufacturing industry.
Click to expand...


Chattanooga: VW incentives largest in state

Tennessee offered its richest incentive package — and perhaps the most government assistance and tax breaks ever for an American automobile plant — to lure Volkswagen to Chattanooga.

But the state’s chief business recruiter said Wednesday that the benefits from VW’s $1 billion assembly plant far will exceed what could top $500 million in government assistance and tax breaks for the project.
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Fook that.

We won't bribe a penny more than $400 million in North Carolina :D





--
 
Hacp

Hacp

Lifer
Jun 8, 2005
13,923
2
81
boomerang said:
Technology evolves over time in the auto industry. It's difficult to make cars smaller and lighter when crash requirements are becoming more stringent. Cars are made from the materials they are because of economies of scale and safety.

Will all this change and improve over time? You bet. Does there need to be legislation to make it happen? You bet.

The people that make the rules know nothing about manufacturing anything. They legislate. They pass laws. It's not their problem how compliance is obtained.

The good news is that all the auto manufacturers must meet whatever requirements legislators deem necessary. The playing field is level. The bad news is that the purchasers get to foot the bill.
Click to expand...

Exactly. You have all these new safety requirements reducing mileage on cars. If the government really wants to go green, it should get rid of all that stupid safety rules.
 
IndyColtsFan

IndyColtsFan

Lifer
Sep 22, 2007
33,655
687
126
sandorski said:
State of the Economy has far more to do with it.
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Why do you think Volkswagen didn't build their new plant in California? Why hasn't any auto manufacturer built plants in California over the last few years? I think that is the point we're discussing here.
 
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her209

her209

No Lifer
Oct 11, 2000
56,336
11
0
blanghorst said:
Why do you think Volkswagen didn't build their new plant in California? Why hasn't any auto manufacturer built plants in California over the last few years? I think that is the point we're discussing here.
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So you're saying Volkswagen and other car manufacturers built plants in every state except California?
 
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