Toyota Motor Corp will end production at a California plant it has shared with General Motors for 25 years, prompting regret and criticism from labor and politicians facing more job losses in an industry and a state pummeled by recession.
The move to cease operations at the plant in Fremont by March 31 puts at risk more than 4,500 jobs and highlights significant overcapacity global carmakers are facing as they try to shake a recession-fueled sales downturn.
The decision on the venture with GM known as New United Motor Manufacturing Inc, or NUMMI, was part of the Japanese automaker's plans announced earlier this week to slash production more broadly to stem losses.
GM pulled out of the partnership in June as part of its bankruptcy reorganization, prompting Toyota to follow suit.
Atsushi Niimi, Toyota's executive vice president responsible for North America, said in a statement that it was not "economically viable" to continue production.
"This is most unfortunate and we deeply regret having to take this action," Niimi said.
California production will shift to Texas, Canada and Japan.
The United Auto Workers, which represents workers at the facility, called the decision devastating and accused Toyota of abandoning workers and the state.
"This is no time to close a highly successful manufacturing facility," Jimmy Settles, a United Auto Workers vice president, said in a statement. "California is one of the most important markets for Toyota."
It was the only UAW facility operated by Toyota.
The decision stung even more for labor and lawmakers in light of news this week that Toyota was the biggest beneficiary of the $3 billion U.S. government "cash for clunkers" incentive program designed to jump-start industry sales.
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