Click here for a new story on NUMMI. It says the future of the plant probably hinges on negotiations with the union, whose contract expires next month. Toyota will want concessions.
If NUMMI goes under, what does that mean to Fremont. It would be a big hit for the regional economy, but not a knockout blow to Fremont.
The city gets nearly $2.2 million a year from NUMMI, but $1.9 million of that is property taxes, which wouldn’t go away, although it could be reduced if the plant closes. The city also gets about $280,000 a year in sales tax, business license tax and assorted permits. That’s about the cost of two rookie cops. For reference, Fremont has a $130 million general fund budget.
How about jobs? I’m told between eight and 12 percent of the roughly 5,000 NUMMI employees live in Fremont. So that’s about 1,000 new jobless city residents. Also the vast majority of the NUMMI’s suppliers are from out of town.