The U.S. Department of Labor has allocated $19 million in emergency funds to factory workers in the New United Motor Manufacturing Inc. (“NUMMI”) plant in Fremont, California who lost their jobs upon the closure of the plant in April this year. The Secretary of the Department, Hilda Solis, has announced that the workers will also get retraining and other support through the funds.

NUMMI, opened by General Motors (MTLQQ) in 1962, was first shut down in 1982 due to operational inefficiencies. However, the plant was reopened two years later under a 50/50 joint venture between General Motors (“GM”) and Toyota Motor Corp. (TM).

NUMMI was a remarkable effort in Toyota’s as well as America’s history. The joint venture taught Americans all about the famous Japanese “lean manufacturing system” (focused on just-in-time delivery) and Toyota stepped into U.S. using GM’s supply lines.

NUMMI produced Corolla and Tacoma for Toyota and Pontiac Vibe (Toyota’s version of the Vibe) for GM. However, GM had decided to pull out of NUMMI after completing its bankruptcy filing in June of last year, as it has discontinued the Pontiac brand.

Toyota stopped production at NUMMI in March this year and shifted production to its other plants in the U.S., Canada and Japan. Production of the Corolla subcompact has been moved to Cambridge, Ontario, as well as Japan, and Tacoma pickups are produced in San Antonio, Texas.

Last Month, Toyota entered a partnership with California-based electric vehicles maker, Tesla Motors Inc. to develop and build electric cars, primarily the Model S electric sedan, developed by Tesla. Toyota will invest $50 million in the partnership that will reopen the NUMMI plant. Tesla has also announced that it will pay $42 million for the plant as a part of its partnership with Toyota.

The partnership plans to begin delivering Model S vehicles to customers from 2012. It is slated to sell for $49,900, including federal tax credits, and is designed to travel 300 miles on a 3–5 hour charge.

Tesla has begun hiring back tformer NUMMI employees to the plant. The automaker plans to add 50 workers per month.

The reopening of the NUMMI plant is definitely good news for the Californians. Due to the closure, as many as 5,400 direct jobs have been lost, including 4,550 hourly United Auto Workers (UAW) union members.
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