History NUMMI

1 history

1.1 background
1.2 makeover
1.3 events closure approached
1.4 alternatives closure
1.5 end
1.6 after nummi: use of land , facility

history
background

the fremont assembly factory nummi took on built general motors , operated them 1962 1982, when fremont employees considered worst workforce in automobile industry in united states , according united auto workers. employees drank alcohol on job, absent (enough production line couldn t started), , committed petty acts of sabotage such putting coke bottles inside door panels, d rattle , annoy customer. gm departmentalized per henry ford s division of labour, without necessary communication; management did not consider workers view of production, , quantity preferred on quality.

makeover

the idea of reopening plant emerged need gm had build high-quality , profitable small cars , need toyota had start building cars in united states, requirement due possibility of import restrictions u.s. congress. goal produce high quality @ low cost, supported including workers in process. choice of fremont plant , workers unusual because of previous problems. in spite of history , reputation, when nummi reopened factory production in 1984, 85% of troublesome gm workforce rehired, sent japan learn toyota production system. workers made transition identified emphasis on quality , teamwork toyota management motivated change in work ethic. among cultural changes same uniform, parking , cafeterias levels of employment in order promote team concept, , no-layoff policy. built-in process quality , employee suggestion programs continual improvement other changes. consensus decision-making reached management level, in contrast old departmentalization.

by december 1984, first car, yellow chevrolet nova rolled off assembly line. , right away, nummi factory producing cars @ same speed , few defects per 100 vehicles produced in japan, higher worker satisfaction.

in 1988 nummi operated @ 58.6% capacity, , had not reached break-even 1991.

despite success @ fremont, 1998 (15 years later) gm had still not been able implement lean manufacturing in rest of united states, though gm managers trained @ nummi successful in introducing approach unionized factories in brazil.

events closure approached

some of challenges factory higher costs. daily tours of plant, offered free public, ended on february 27, 2009.

on june 29, 2009, general motors announced discontinue joint venture toyota. announcement made following gm ceo fritz henderson announcing in april general motors discontinue pontiac vibe production @ nummi. 2 automakers in discussions not find suitable product produced @ factory. “after extensive analysis, gm , toyota not reach agreement on future product plan made sense parties,” gm north america president troy clarke said in statement. toyota’s hope continue venture , haven’t yet decided plans @ factory,” said hideaki homma, toyota’s tokyo-based spokesman. “while respect decision gm, economic , business environment surrounding toyota extremely severe, , decision gm makes situation more difficult toyota.” before gm decided sever stake in nummi joint venture, toyota considering offering version of prius hybrid gm built @ factory , sold gm model toyota has indicated considering exiting venture also.

on august 27, 2009, toyota announced discontinue production contract nummi, shifting tacoma production san antonio, texas pickup plant , corolla assembly blue springs, mississippi. total of 5,400 employees affected, including 4,550 uaw hourly workers.

in november 2009, toyota s head of u.s. sales took calls autoworkers, saying though has been difficult decision shut down plant, economics of having plant in california far away supplier lines in midwest doesn t make business sense toyota continue running nummi plant. meanwhile, autoworkers prepared shut down refreshing skills , planning career transitions. federal, state, , local officials participated in transition discussions. in march 2010, 90% of 3,700 uaw workers @ plant approved $281 million severance package averaging $54,000, paid toyota plant s 4,700 employees.

alternatives closure

in january 2010, possible use of land proposed: new stadium home games of oakland athletics of major league baseball. close proposed site of cisco field, never formally approved.

state officials crafted sales tax exemption on new factory equipment preserve nummi. regional committee formed in february 2010 investigate closure of plant, , facility appraised while operating.

on march 10, 2010, aurica motors announced proposal save nummi automotive plant , jobs associated it. company said intended raise investment capital , garner federal economic stimulus funds retrain workers , retool facility production of electrical vehicles.

end

the nummi plant ceased operations on april 1, 2010 ending toyota-gm joint venture. california s last automobile manufacturing plant saw last car, corolla, roll off assembly line. nummi sold off equipment @ auction, robots , tooling going toyota plants in kentucky, texas , mississippi. nummi sold equipment tesla $15 million.

after nummi: use of land , facility

on may 20, 2010, tesla motors , toyota announced partnership work on electric vehicle development, included tesla s partial purchase (210 of 370 acres) of former nummi site $42 million, consisting of factory building, not equipment. tesla ceo elon musk said tesla s sedan built @ plant. when tesla took on location in 2010, renamed tesla factory. tesla collaborating toyota on development of electric vehicles, parts, , production system , engineering support . according tesla motors plans, plant first used produce tesla model s sedan future vehicles following in coming years. plant projected produce 20,000 vehicles year , employ 1,000 workers start.