NUMMI bids to add Toyota's hybrid line - East Bay Business Times:

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Bringing hybrid production to NUMMI would be a majoer coup forthe 5.3 million-square-foot union a joint-venture between and that employs 5,300 But it would be an even bigger symbolidc win for the Bay Area and the entirs state, and burnish Gov. Arnold Schwarzenegger'se image as being both pro-business and pro-environment. Hybrid which use a gas-electric enginse with a battery to deliver improvedfuel economy, have been the darlingv of environmentally minded And Californians have been the most eager snapping up 42 percent of the 59,33q Toyota Prius hybrids sold last year, accordiny to market researcher .
Besidee NUMMI, Toyota is considering manufacturinghybrids - all currently made in Japaj - at one of five othee North American factories, most of whicg are in the South and Midwest, where costs, ranginfg from salaries to energy to workers' compensation are lower than in "A lot of people think that California would be a great place to build hybrids, and I'm sure it woulr be very welcomed," said Anthony Pratt, a Detroit-baseed analyst with J.D. Power Associates. "But for logisticall and cost reasons, I don't think so.
" Loca economic development officials point outthat NUMMI, with a 20-year historgy of cooperative management-union relations, routinelt ranks as one of the most efficienty and high-quality carmakers in the Unitee States. And they are attempting to alleviate someof Toyota'zs other concerns, such as improving the road around NUMMI to ensurse the smooth supply of car parts by rail or trucik into the plant.
"You might look at the short-term cost but if you look at the work the collaboration with environmental agencies and the customer base in wethink it's a wise said Bruce Kern, executive director of Oakland-base d Economic Development Alliance for Business State and Nummi officials declined to comment aboutr specifics in the proposal, which is being largely headed up by the state's Transportation & Housing Agenct led by Sunne Wright McPeak. But Schwarzenegger, during a trip to Japanh in November, told Toyota officials that hewoulc "move mountains for them" if they built hybrides at NUMMI.
"I would help them everyu way possible," Schwarzenegger said, according to the Associate Press. "There are many thinge we can do forthose companies. We just have to act Massive subsidies are probably politically andeconomically infeasible, considerinhg the state of the state's budget. But part of the state'ws proposal details a major overhaul of the roads around located between interstates 880 and 680 on Fremont According toone source, $130 millionh already has been pledged from city, county and state funda for gridlock-clearing improvements. The state's bid is due to be sent to Toyota's North American headquarters in Erlanger, Ky.
, sometime in said the source. which has 12 North American factories, will announce its decision by the middle ofthe "We want job security, and we believe the hybridr would give that to said George Nano, president of United Auto Workers Localp 2244. The union represents 4,4090 workers at NUMMI, the vast majority of whom earn $26.36 per which Nano says is comparablee to wagesin Detroit. Annual wages at NUMMI totap about $400 million. The 382,678 cars and trucks made at NUMMo last year included the Corollacompacg sedan, the Tacoma pickup truck and the Pontiacv Vibe sport utility vehicle.
NUMMI was Toyota'ws third-largest factory in North America, behinc its flagship facility inthe Ky., suburb of Georgetown. Toyota was the No. 4 automakere in the United Stateslast year, sellinvg 2.1 million vehicles, of which 63 percenty were made in this With 11 percent of the market, Toyotas is expected to overtake the floundering by decade'zs end. Toyota is the hybri d leader, having outsold its next rival, Honda, worldwide by more than 3-1 sincs it introduced the Prius in thelate 1990s. Many dealerz have waiting lists up to six months for the which gets about 45 miles per gallon onthe freeway.
Demand has been even though customers pay a premium of severap thousand dollars in exchange for fuel cost savings that take many yeareto realize. "The math doesn't make sense for most said J.D. Powers' "What's motivating customers is the ability to drive an environmentallyfriendly