Toyota Corp. May Back out Unless Concessions Granted

By Tim Bovee, Ap | THE JOURNAL RECORD, July 25, 1985 | Go to article overview

Toyota Corp. May Back out Unless Concessions Granted


Tim Bovee, Ap, THE JOURNAL RECORD


DETROIT (AP) - The United Auto Workers welcomes Toyota Motor Corp.'s plan to build cars in the United States under its own name, but analysts say Japan's No. 1 automaker may back out unless the union grants concessions.

""If the UAW were to refuse to grant any concessions at all, such as it has already granted Mazda Motor Corp., in both compensation levels and work rules, the Japanese would absolutely refuse to operate under those conditions,'' said Donald DeScenza, who follows the Japanese automakers for Nomura Securities in New York.

Toyota said Tuesday it planned to build plants in the United States and Canada to produce 250,000 passenger cars annually starting in 1988.

The U.S. plant, at an unspecified location, would produce 200,000 cars per year, Toyota said.

Japan's two other top automakers, Nissan Motor Co. Ltd. and Honda Motor Co. Ltd., have plants in Tennessee and Ohio, respectively. Mazda plans to start production in Flat Rock, Mich., in 1987, under an agreement with the UAW that allows lower wages initially than U.S. automakers pay and more lenient work rules.

""Toyota's management is known within Japan to be very conservative,'' DeScenza said. ""They move carefully. Once they decide to move, they move aggressively.''

UAW President Owen Bieber said the UAW's work with Toyota in establishing with General Motors Corp. a joint manufacturing venture in Fremont, Calif., provided ""the basis for a positive and productive relationship in the best interests of the workers, the employer and the consumers.''

He said his union expects to represent workers at the Toyota plant, although labor leaders have had no formal discussions with Toyota officials regarding the new facility. …

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