FREMONT, Calif. - The United Auto Workers and Toyota have agreed on terms to shut down a joint venture plant in California the Japanese carmaker operated for more than two decades with General Motors.
The plant, known as Nummi, is California's sole remaining auto plant.
The terms weren't disclosed Monday but include a pay package when the plant is shut down April 1. The agreement is subject to a ratification vote by the plant's 4,600 workers. The UAW says a vote will probably take place later this week.
Messages left Monday with Toyota and the UAW were not immediately returned.
Toyota Motor Co. said earlier this month that it will spend US$250 million assisting employees at the factory.
Nummi, which stands for New United Motor Manufacturing Inc., began 25 years ago as a joint venture between Toyota and General Motors Co. The goal was to let GM observe the Japanese car-making system and let Toyota test out its production model on U.S. workers.
GM, which briefly went into bankruptcy protection last year, pulled out of the alliance and is liquidating its stake. Toyota announced in August that without GM, it could not continue operating the factory and it would halt production.
The plant produced a variety of vehicles over its lifetime, including the Pontiac Vibe, a compact hatchback that was the mechanical counterpart of the Toyota Matrix and was based on the Corolla platform.
Production of the Vibe ended last August for the 2010 model year. The vehicle has been included in recalls affecting Toyota floor mats and sticking gas pedals.
After the California plant shuts down, Toyota plans to move current production of the Corolla sedan to Canada and Japan and the Tacoma pickup to Texas.
The UAW represents the Nummi workers because of its history with GM. The union doesn't represent any other Toyota workers in the U.S.
