I8ABMR

can you blame them. Sales are historically low and CA is becoming a harsh economic environment so the facility will get the axe

LexFather

Always sad to see people lose jobs.

IS-SV

Yes, loss of jobs is really tough in this recession especially. UAW really has no place here.

Trexus

This is true that California has one of the highest state corporate tax rates and no incentives for manufacturers to stay or come to California. Once upon a time not too long ago there was a CA credit called MIC (manufacturer's investment credit) and now it has gone away. I've seen so many manufacturing companies leave or stop doing business in California it's not even funny.

It is true that Nevada has no state personal or corporate income tax which is great and less paperwork. Florida, Texas, Wyoming, Washington state and a few states don't have state income tax for personal or corporate. Oregon has no sales tax and a few other states as well.

If I was Governor Schwarzenegger forget about the state garage sale. That's peanuts and pennies on the dollar. Keep Toyota in California and lure big businesses to come to California by offering tax incentives and state subsidies. By doing that it will provide jobs. People will be working and paying personal income tax and people will be spending and paying sales tax. Also since we are all going "Green" give tax breaks to these companies.
It's simply as that. California is the most populated state in the Union. WTF?

Trexus

For California there are a few of the Fortune Global 500 located here:

1. Chevron - San Ramon, CA
2. Hewlett-Packard - Palo Alto, CA
3. McKesson - San Francisco, CA
4. Wells Fargo - San Francisco, CA
5. Intel - Santa Clara, CA
6. Safeway - Pleasanton, CA

As one can see most of the big boys are in northern California. I wonder why?

New York has most of the big corporations but Texas has now taken the lead as the location for most of the Fortune Global 500.

1. ExxonMobil - Irving, TX
2. ConocoPhillips - Houston, TX
3. AT&T - Dallas, TX
4. Valero Energy - San Antonio, TX
5. Marathon Oil - Houston, TX
6. Dell - Round Rock, TX

There are lots more big corporations in Texas to list out...

nthach

You forgot Cisco and Google even though they aren't on that Fortune list

IS-SV

Yes, and don't forget that 1/3 of the entire US venture capital goes straight into the Bay Area of Northern California, no other region or state evens come close to that amount. Hi-tech/Silicon Valley is an interesting business machine watched around the world.

But back on topic, it looks like there won't be anymore UAW car factories here, I still remember the old Ford factory in Milpitas, CA.

bitkahuna

iTrader: (20)

excellent post. maybe the gov wants to do that but knows he couldn't get it through the legislature.

S2000toIS350

Another sad piece to this tale is that they actually did a great job building vehicles there.

I recently bought our son an 09 Vibe AWD. What a great car. With all the GM deals I got the thing for $18000 and it had everything except for the sun roof and sub woofer package.

Combine loss of utilization due to brain dead GM not rebadging the vibe as a Chevy, the well stated CA and Union aspects and the Toyota finance folks had an easy decision to ditch the facility.

Trexus

Opps I missed them. They are on the Fortune list but there's quite a few big companies in California but most are located in northern California. Not sure why? SoCal is dead...

Cisco - San Jose
Google - Mountain View
Yahoo - Sunnyvale
Oracle - Redwood City
Genentech - South San Francisco

IS-SV

Yes, all high tech companies headquartered in tech capital.

So Cal must have a large number of smaller companies.

I8ABMR

Can things look worse for CA???? Does anyone know of any other state that is struggling as bad as CA??

IS-SV

In terms of state government financial situation, CA is the worst one, but I read a few other state governments have severe financial problems too.

S2000toIS350

Scratch Genentech form the list as they are owned by Roche Holdings of Switzerland.

silversprucesc3

Sad indeed for me personally as I worked there one summer in the mid 80's with my aunt who consulted the management integration of Toyota and GM... I do remember that the Union was bitterly opposed to Toyota's philosophies at the time.. I believed or hoped that the culture had changed..