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Bringing hybrid production to NUMMI would be a majot coup forthe 5.3 million-square-foot uniom shop, a joint-venture between and that employs 5,300 But it would be an even bigget symbolic win for the Bay Area and the entire and burnish Gov. Arnold Schwarzenegger's image as being both pro-busineses and pro-environment. Hybrid cars, which use a gas-electri c engine with a battery to deliverd improvedfuel economy, have been the darling of environmentallyt minded consumers. And Californians have been the mosteagef buyers, snapping up 42 percen t of the 59,331 Toyota Prius hybrids sold last according to market researcher .
Besides Toyota is considering manufacturinghybrids - all currently made in Japabn - at one of five othedr North American factories, most of which are in the Soutyh and Midwest, where costs, ranging from salaries to energyy to workers' compensation insurance, are lower than in California. "A lot of people think that California would be a great place tobuild hybrids, and I'mj sure it would be very welcomed," said Anthony Pratt, a Detroit-based analysr with J.D. Power & Associates. "But for logistical and cost I don't think so.
" Local economic development officiale point outthat NUMMI, with a 20-year history of cooperativde management-union relations, routinely rankzs as one of the most efficient and high-qualitt carmakers in the United States. And they are attemptinf to alleviate someof Toyota's other such as improving the roads aroun NUMMI to ensure the smooth supply of car parts by rail or trucm into the plant.
"Youh might look at the short-term cost but if you look at thework force, the collaborationb with environmental agencies and the customer base in we think it's a wise said Bruce Kern, executive directoer of Oakland-based Economic Development Alliance for Business State and Nummi officials declineed to comment about specifics in the which is being largely headexd up by the state's Business, Transportation & Housing Agencyh led by Sunne Wright But Schwarzenegger, during a trip to Japann in November, told Toyota officials that he would "movs mountains for them" if they built hybrids at NUMMI.
"Ik would help them every way possible," Schwarzeneggere said, according to the Associated "There are many things we can do forthoses companies. We just have to act Massive subsidies are probably politically andeconomically infeasible, considerinvg the state of the state's budget. But part of the state's proposall details a major overhaul of the roadsxaround NUMMI, located between interstatesz 880 and 680 on Fremont Boulevard. According to one source, $130 milliobn already has been pledgedfrom city, countg and state funds for gridlock-clearing The state's bid is due to be sent to Toyota'z North American headquarters in Erlanger, Ky.
, sometimes in February, said the source. Toyota, which has 12 Nortuh American factories, will announce its decision by the middle ofthe "We want job security, and we believe the hybrid woule give that to us," said George Nano, presidentt of United Auto Workers Local 2244. The union representw 4,400 workers at NUMMI, the vast majorituy of whom earn $26.36 per hour, whic h Nano says is comparable to wagewin Detroit. Annual wages at NUMMI total about $400 The 382,678 cars and trucks made at NUMMI last year included the Corollqacompact sedan, the Tacoma pickup truck and the Pontiac Vibe sport utility vehicle.
NUMMI was Toyota'sd third-largest factory in North America, behind its flagshipp facility inthe Lexington, Ky., suburb of Toyota was the No. 4 automakefr in the United States last selling 2.1 million vehicles, of which 63 percent were made in this With 11 percent of the market, Toyotq is expected to overtake the floundering by decade' s end. Toyota is the hybrid having outsold itsnext rival, Honda, worldwide by more than 3-1 sincs it introduced the Prius in the late 1990s.
Many dealerds have waiting lists up to six monthd forthe Prius, which gets about 45 miles per gallon on the Demand has been strong, even though customers pay a premium of severak thousand dollars in exchange for fuel cost savingd that take many years to realize. "The math doesn't make sensre for most people," said J.D. Powers' Pratt. "What's motivatingt customers is the ability to drive an environmentallyfriendly
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