NUMMI

NUMMI
Industry Automotive industry
Fate Dissolved; Portion of physical plant sold to Tesla Motors
Predecessor Fremont Assembly 1960-1982
Successor Tesla Factory (physical plant)
Founded 1984 (1984)
Defunct 2010
Headquarters Fremont, California, United States
Products Subcompact cars and trucks
Services Automotive manufacturing
Owner General Motors and Toyota (1984–2010)
Website Archived home page

New United Motor Manufacturing, Inc. (NUMMI) was an automobile manufacturing company in Fremont, California, jointly owned by General Motors and Toyota that opened in 1984 and closed in 2010. On October 27, 2010, its former plant reopened as a 100% Tesla Motors-owned production facility, known as the Tesla Factory.[1] The plant is located in the East Industrial area of Fremont between Interstate 880 and Interstate 680.

Overview

The NUMMI plant in Fremont, California

NUMMI was established at the former General Motors Fremont Assembly site that had been closed two years earlier in 1982 (GM plant since 1962). GM and Toyota reopened the factory as a joint venture in 1984 to manufacture vehicles to be sold under both brands.[2]

GM saw the joint venture as an opportunity to learn about lean manufacturing from the Japanese company, while Toyota gained its first manufacturing base in North America and a chance to implement its production system in an American labor environment,[3][4] avoiding possible import restrictions.[5] GM employees went to Toyota's Takaoka plant in Japan and improved production at NUMMI,[6][7] Spring Hill and other sites,[8] particularly after Jack Smith spread the program.[9][10]

Up to May 2010, NUMMI built an average of 6000 vehicles a week, or nearly eight million cars and trucks since opening in 1984.[11][12] In 1997, NUMMI produced 357,809 cars and trucks,[13] peaking at 428,633 units in 2006.[10]

GM pulled out of the venture in June 2009 due to its bankruptcy, and several months later Toyota announced plans to pull out by March 2010.[14][15] The closure was opposed by city officials,[16][17][18] including Fremont Mayor Bob Wasserman, who lobbied to keep NUMMI in the city.[19] However, at 9.40am on April 1, 2010, the plant produced its last car, a red Toyota Corolla S believed to be destined for a museum in Japan. Production of Corollas in North America moved to Toyota Motor Manufacturing Mississippi's assembly plant in Blue Springs, Mississippi.

On May 20, 2010, it was announced that Tesla Motors had purchased[20][21] part of the NUMMI plant and would be collaborating with Toyota on the "development of electric vehicles, parts, and production system and engineering support". According to Tesla Motors' plans, the plant would first be used to produce the Tesla Model S sedan with "future vehicles" following in the coming years. The plant (called the Tesla Factory) was projected to produce 20,000 vehicles a year and employ 1,000 workers to start.[22]

Facility

The plant spans the equivalent of about 88 football fields, and is configured into a main building that does the final assembly of vehicles and five other facilities:

Employees

Until the facility's closure in April 2010, 4,700 workers were employed.[23] NUMMI employees were represented by The International, United Automobile, Aerospace and Agricultural Implement Workers of America (UAW) Local 2244.

Models produced

The first model NUMMI produced was the Chevrolet Nova (1984–1988). This was followed by the Geo Prizm (1989–1997), the Chevrolet Prizm (1998–2002) and the Hilux (1991–1995, predecessor of the Tacoma), as well as the Toyota Voltz, the Japanese right-hand drive version of the Pontiac Vibe. Both of the latter are based on the Toyota Matrix.

Production of the Pontiac Vibe hatchback was discontinued in August 2009 as GM phased out the Pontiac brand in the midst of a bailout.[24] Along with Saturn and Hummer, Pontiac joined Oldsmobile (which had been discontinued after 2004) among the four GM brands that are no longer in production.

Beginning in September 1986, the NUMMI plant produced the Corolla.[2] In January 1995, it began producing the Toyota Tacoma pickup truck.[2]

History

Background

The Fremont Assembly factory which NUMMI took over was built by General Motors and operated by them from 1962 to 1982,[2] when the Fremont employees[25] were "considered the worst workforce in the automobile industry in the United States", according to the United Auto Workers.[11][12][4] Employees drank alcohol on the job, were frequently absent (enough so that the production line couldn't be started), and even committed petty acts of sabotage such as putting "Coke bottles inside the door panels, so they'd rattle and annoy the customer."[11][12] GM was departmentalized as per Henry Ford's Division of labour,[26][27] but without the necessary communication; management did not consider workers' view of production, and quantity was preferred over quality.[4]

The idea of reopening the plant emerged from the need that GM had to build high-quality and profitable small cars and the need Toyota had to start building cars in the United States, a requirement due to the possibility of import restrictions by the U.S. Congress.[11][12] The choice of the Fremont plant and its workers was unusual because of the previous problems. In spite of the history and reputation, when NUMMI reopened the factory for production in 1984, 85% of the troublesome GM workforce was rehired, with some sent to Japan to learn the Toyota Production System.[11][12][4] Workers who made the transition identified the emphasis on quality and teamwork by Toyota management as what motivated a change in work ethic.[11][12]

By December 1984, the first car, a yellow Chevrolet Nova rolled off the assembly line. And almost right away, the NUMMI factory was producing cars with as few defects per 100 vehicles as those produced in Japan.[11][12] But 15 years later, GM had still not been able to implement lean manufacturing in the rest of the United States, though GM managers trained at NUMMI were successful in introducing the approach to its unionized factories in Brazil.[28][4]

Events as closure approached

Daily tours of the plant, offered free to the public, were ended on February 27, 2009.[29][30]

On June 29, 2009, General Motors announced that they would discontinue the joint venture with Toyota.[31] The announcement was made following GM CEO Fritz Henderson announcing in April that General Motors would discontinue the Pontiac Vibe production at NUMMI. The two automakers were in discussions but could not find a suitable product to be produced at the factory. “After extensive analysis, GM and Toyota could not reach an agreement on a future product plan that made sense for all parties,” GM North America President Troy Clarke said in a statement. "Toyota’s hope was to continue the venture and we haven’t yet decided any plans at the factory,” said Hideaki Homma, Toyota’s Tokyo-based spokesman. “While we respect this decision by GM, the economic and business environment surrounding Toyota is also extremely severe, and so this decision by GM makes the situation even more difficult for Toyota.” Before GM decided to sever its stake in the NUMMI joint venture, Toyota was considering offering a version of its Prius hybrid to GM that would be built at the factory and sold as a GM model but Toyota has indicated that it was seriously considering exiting the venture also.[32][33]

On August 27, 2009, Toyota announced that it would discontinue its production contract with NUMMI, shifting Tacoma production to its San Antonio, Texas pickup plant and Corolla assembly to Blue Springs, Mississippi. A total of 5,400 employees were affected, including 4,550 UAW hourly workers.[34]

In November 2009, Toyota's head of U.S. sales took calls from autoworkers, saying that though it has been a difficult decision to shut down the plant, "the economics of having a plant in California so far away from the supplier lines" in the Midwest "just doesn't make business sense" for Toyota to continue running the NUMMI plant.[35] Meanwhile, autoworkers prepared for the shut down by refreshing skills and planning for career transitions.[36] Federal, state, and local officials also participated in the transition discussions.[37] Toyota paid $281 million in severance package to the plant's 4,700 employees.[38]

After NUMMI: use of the land and facility

For more details on this topic, see Tesla Factory.

In January 2010, a possible use of the land was proposed: a new stadium for home games of the Oakland Athletics of Major League Baseball. It is close to the proposed site of Cisco Field, which was never formally approved.[39]

A regional committee was formed in February 2010 to investigate the closure of the plant.[40]

On March 10, 2010, Aurica Motors announced a proposal to save the NUMMI automotive plant and the jobs associated with it. The company said that it intended to raise investment capital and garner federal economic stimulus funds to help retrain the workers and retool the facility for production of electrical vehicles.[41][42]

The NUMMI plant ceased operations on April 1, 2010 ending the Toyota-GM joint venture. California's last automobile manufacturing plant saw its last car, a Corolla, roll off the assembly line.[43]

On May 20, 2010, Tesla Motors and Toyota announced a partnership to work on electric vehicle development, which included Tesla's partial purchase of the former NUMMI site, mainly consisting of the factory building.[20][23] Tesla CEO Elon Musk said the Tesla S sedan will be built at the plant.[44] When Tesla took over the location in 2010, they renamed it the Tesla Factory.[45]

See also

References

  1. ↑ Sibley, Lisa (October 27, 2010). "Tesla officially replaces NUMMI in Fremont".
  2. 1 2 3 4 "timeline". NUMMI. Archived from the original on April 2, 2010. Retrieved November 30, 2013.
  3. ↑ Adler, Paul S. (January 1995). "Democratic Taylorism: The Toyota Production System at NUMMI". ResearchGate. Retrieved October 10, 2016.
  4. 1 2 3 4 5 Glass, Ira (July 17, 2015). "NUMMI 2015, Transcript". Archived from the original on June 19, 2016. Retrieved November 9, 2016. nobody in the GM plant would ever ask to help. They would come and yell at you because you got behind. I can't remember any time in my working life where anybody asked for my ideas to solve the problem. There's nobody to pull you out at General Motors, so you're going to let something go. Hundreds of misassembled cars. Never stop the line. . One reason car execs were in denial was Detroit's insular culture. Yes, unions and management were always at each other's throats, and yes, GM and its suppliers had a destructive relationship that seemed to almost discourage quality. But everyone had settled into comfortable roles in this dysfunctional system and learned to live with it. -it took about a decade and a half after NUMMI for change to even begin to take hold at GM. By the year 2000, GM finally started to see a generational transformation.
  5. ↑ "Global Website - 75 Years of Toyota - Section 3. Local Production Starts in North America - Item 2. Joint Venture with GM". Toyota. 2012. Archived from the original on March 30, 2016. Retrieved October 10, 2016.
  6. ↑ "How NUMMI Changed Its Culture". September 30, 2009. Archived from the original on May 14, 2016. Retrieved October 10, 2016.
  7. ↑ "How to Change a Culture: Lessons From NUMMI". MIT Sloan Management Review. 2010. Archived from the original on March 2, 2016. Retrieved October 10, 2016.
  8. ↑ "Goodbye to NUMMI - How a Manufacturing Plant Changed the Culture of the Car-Making". Popular Mechanics. April 2, 2010. Archived from the original on September 19, 2016. Retrieved October 10, 2016.
  9. ↑ "NUMMI joint venture in California was a classroom for change". Automotive News. September 14, 2008. Archived from the original on October 10, 2016. Retrieved October 10, 2016.
  10. 1 2 Schweinsberg, Christine (August 28, 2009). "Toyota's Decision to Abandon NUMMI Closes Book on 25-Year Experiment". Ward's. Archived from the original on April 5, 2016. Retrieved October 10, 2016.
  11. 1 2 3 4 5 6 7 Siegel, Robert (March 26, 2010). "The End Of The Line For GM-Toyota Joint Venture". All Things Considered. National Public Radio. Archived from the original on April 23, 2016. Retrieved April 7, 2010.
  12. 1 2 3 4 5 6 7 "Episode 403 - NUMMI". This American Life. March 26, 2010. Retrieved April 7, 2010.
  13. ↑ "GM Nummi Plant". Archived from the original on March 14, 2016. Retrieved October 9, 2016.
  14. ↑ Thomas, Ken (August 28, 2009). "Toyota plans to end production at Calif. plant". Google News. Retrieved August 29, 2009.
  15. ↑ Abate, Tom (August 28, 2009). "Toyota closing Fremont Nummi plant". SFGate. Retrieved August 29, 2009.
  16. ↑ Abate, Tom (August 6, 2009). "State offers incentives to save Nummi plant". SFGate. Retrieved November 3, 2015.
  17. ↑ Bensinger, Ken (July 16, 2009). "State lawmakers scramble to keep Toyota plant open". Los Angeles Times. Retrieved November 3, 2015.
  18. ↑ Schwarzenegger, Arnold; Haggerty, Scott; Wasserman, Bob (August 25, 2009). "Restoring California's Automotive Industry". freemont.gov. Retrieved November 3, 2015.
  19. ↑ "Memorial Held For Fremont Mayor Wasserman". KCBS-TV. 2012-01-06. Retrieved 2012-01-21.
  20. 1 2 Riddell, Lindsay (May 20, 2010). "Tesla to buy NUMMI plant, build cars with Toyota". San Francisco Business Times. Retrieved May 21, 2010.
  21. ↑ Davis, Joshua (September 27, 2010). "How Elon Musk Turned Tesla Into the Car Company of the Future". WIRED. Retrieved October 10, 2016.
  22. ↑ "Tesla lands sudden deal with Toyota, will build Model S sedan in Fremont NUMMI plant". Engadget. Retrieved December 21, 2010.
  23. 1 2 Tesla Wants NUMMI Operational By 2012 KVTU.com, May 21, 2010. Retrieved: May 22, 2010
  24. ↑ "General Motors Statement Regarding Discontinuation of Pontiac Vibe Production at NUMMI Facility". Retrieved June 20, 2009.
  25. ↑ "GM Nummi Plant". Archived from the original on March 4, 2016. Retrieved November 9, 2016.
  26. ↑ Roos, Daniel; Womack, James P.; Jones, Daniel T (November 1991). The Machine That Changed the World : The Story of Lean Production. Harper Perennial. ISBN 978-0060974176.
  27. ↑ Urbance, Randy. "ESD.83 Book Review of The Machine that Changed the World" (PDF). Massachusetts Institute of Technology.
  28. ↑ Bradsher, Keith (June 17, 1998). "G.M.'s Plant in Brazil Raises Fears Closer to Home". The New York Times. Retrieved April 7, 2010.
  29. ↑ "Nummi Tours Appointments". Retrieved June 20, 2009.
  30. ↑ "Nummi Tours". Archived from the original on March 9, 2009. Retrieved June 20, 2009.
  31. ↑ "GM ends 25-yr-old joint venture with Toyota to build cars, trucks at Calif. plant". Los Angeles Times. Archived from the original on July 2, 2009. Retrieved June 30, 2009.
  32. ↑ Kim, Soyoung (July 10, 2009). "UPDATE 1-Toyota may drop U.S. joint venture with GM". Reuters. Retrieved July 13, 2009.
  33. ↑ Fujimura, Naoko; Komatsu, Tetsuya (July 11, 2009). "Toyota May Dissolve California Plant Venture Abandoned by GM". Bloomberg.com. Retrieved July 13, 2009.
  34. ↑ Ohnsman, Alan; Inoue, Kae (August 28, 2009). "Toyota Will Shut California Plant in First Closure". Bloomberg.com. Retrieved August 29, 2009.
  35. ↑ Matthews, Mark (November 17, 2009). "Toyota sales head talks about NUMMI closure". abclocal.go.com/kgo. Retrieved November 22, 2009.
  36. ↑ Avalos, George (November 16, 2009). "NUMMI auto factory closing: End of the line". contracostatimes.com. Retrieved November 22, 2009.
  37. ↑ Abate, Tom (November 14, 2009). "A huddle to help Nummi workers find new jobs". sfgate.com. Retrieved November 22, 2009.
  38. ↑ Tobak, Steve (April 2, 2010). "Blame GM, Not Toyota, for NUMMI Plant Closure". CBS. US. Archived from the original on October 10, 2016. Retrieved October 10, 2016.
  39. ↑ Jones, Carolyn (January 9, 2010). "Fremont's new pitch: A's stadium at Nummi site". sfgate.com. Retrieved January 15, 2010.
  40. ↑ "Toyota's Proposed Plant Shutdown to Be Scrutinized by Panel of California Leaders". February 24, 2010. Retrieved March 2, 2010.
  41. ↑ "Aurica Motors Announces Plan to Keep NUMMI Plant Open by Manufacturing Electric Cars" (Word document). Aurica Motors. March 10, 2010. Retrieved April 2, 2010.
  42. ↑ "Auto firm setting sights on NUMMI". The Oakland Tribune. March 10, 2010. Retrieved April 2, 2010.
  43. ↑ "NUMMI Plant Closure Ends Toyota-GM Venture". March 31, 2010. Retrieved March 31, 2010.
  44. ↑ Tierney, Christine. Toyota invests in Tesla to help reopen Calif. plant The Detroit News, May 20, 2010. Retrieved: May 22, 2010
  45. ↑ "Tesla Motors Opens Tesla Factory - Home of the Model S" (Press release). Tesla Motors. October 27, 2010. Retrieved July 18, 2012.
  46. ↑ "Why Toyota Is Afraid Of Being Number One". Bloomberg Businessweek. March 5, 2007. Retrieved July 9, 2011.

Coordinates: 37°29′41″N 121°56′41″W / 37.49472°N 121.94472°W / 37.49472; -121.94472

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