On April 1, 2010, the final Toyota Corolla rolled off the assembly line at the NUMMI plant in Fremont, California, a joint venture between General Motors and Toyota. This closure came in the wake of a severe financial crisis that devastated the automotive industry, leading to widespread layoffs and the disappearance of entire brands like Pontiac and Hummer. NUMMI stands as one of the few instances where Toyota has decided to shut down a factory. Even when GM, its partner in NUMMI, faced bankruptcy and was almost certain to abandon the plant, Toyota attempted to keep it operational solely for producing Toyota vehicles. Ultimately, when the decision to close the plant was unavoidable, Toyota ensured that employees received severance packages, job training, and support. While the closure of NUMMI was almost inevitable—California had become increasingly challenging for vehicle manufacturing—it remains an exceptionally rare event for Toyota. Generally, Toyota refrains from closing factories. Here’s why: Toyota places immense value on human capital. As Eiji Toyoda, a Toyota advisor, once remarked, "Because people make our automobiles, nothing gets started until we train and educate our people." This philosophy underscores Toyota's approach to its workforce. During the 2008 financial crisis, when Toyota's truck sales dropped by nearly 50%, instead of laying off workers at the San Antonio truck plant, which manufactured the Tundra and Tacoma, Toyota chose to keep all 2,000 plant employees fully employed. These employees continued to work in a two-shift operation and were paid their full wages. In their downtime, they participated in extensive training programs to acquire new skills. Toyota also encouraged employees to engage in community service in San Antonio, compensating them fully for their time. By investing in their workers and avoiding layoffs, Toyota treats its workforce as a critical asset, recognizing the difficulty of finding skilled labor and making efforts to retain top talent. Another reason Toyota keeps its factories running, even when capacity isn’t fully utilized, is its tolerance for excess capacity. Ideally, Toyota would sell every vehicle it produces, maximizing efficiency and profitability. However, market conditions fluctuate, and plant capacity utilization varies accordingly. Unlike many competitors, Toyota doesn’t typically respond to dips in sales by closing plants. Instead, it takes a long-term perspective, evaluating a plant’s potential over the next five, ten, or even twenty years. If projections remain positive, Toyota will keep underutilized facilities open. This strategy held true during the Great Recession when, despite plummeting global auto sales, Toyota maintained its U.S. workforce and kept factories operational. Toyota’s approach reflects its calm response to temporary market shifts. Rather than panicking when factories operate below full capacity, Toyota invests in employees, trains them, and waits for future demand to rise. The 2008 recession served as a pivotal moment for Toyota, teaching it the importance of a "build where you sell" business model. The company learned that such a strategy ensures the greatest long-term profitability. Instead of losing money due to currency fluctuations, Toyota diversified its production outside of Japan. Currently, Toyota is focusing on constructing new plants in markets expected to grow significantly, such as Mexico for the burgeoning North American market and China. Although these projects require billions of dollars, they target regions with promising futures. Additionally, Toyota is enhancing autonomy across its global divisions, including Toyota USA and Toyota Europe. For instance, Toyota USA is building a new headquarters in Plano, Texas, and upgrading the Kentucky plant. In summary, Toyota maintains an outlook focused on the long term. It only constructs plants with sustainable futures and avoids shutting them down due to short-term market changes. This article was written by Jason Lancaster.

Other Function PEM


Perfect PFIEM ,PSAIM used for electrochemistry ,Fuel cell ,Hydrogen fuel cell .Vanadium Battery,Precious metal recovery, electrolytic salt water, waste water treatment, drinking water treatment, electrolytic acid and alkali water, hydrogen-rich water cup, electrolytic water, biofuel cell, chlor-alkali production, caustic soda production, electrochemical sensor, electrolytic cell, gold salt preparation, membrane electrode, electrolytic water hydrogen production, etc

Types: N11 serires:inclulde N113,N1135, N114,N115,N116,N116W,N117,N1110

N21 series: include N211, N212

N31 series:Include N3015 N3010

N41 series: include N417, N4110

N51 series : Include: N515PTFE



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