Coordinates: 37°29′41″N 121°56′41″W

NUMMI
New United Motor Manufacturing, Inc. (NUMMI) was an
American automobile manufacturing company in Fremont,
New United Motor
California, jointly owned by General Motors and Toyota that Manufacturing, Inc.
opened in 1984 and closed in 2010. (NUMMI)

After the plant was closed by its owners, the facility was sold to
Tesla, Inc. and reopened as a 100% Tesla-owned production
facility in October 2010, becoming known as the Tesla Factory.[1]
Industry Automotive
The plant is located in the East Industrial area of Fremont next to Predecessor Fremont Assembly
the Mud Slough between Interstate 880 and Interstate 680. (1960–1982)
Founded December 1984
NUMMI yearly production peaked at 428,633 vehicles in 2006.[2]
Defunct April 1, 2010
Fate Dissolved; Portion
Contents of physical plant
sold to Tesla, Inc.
History Successor Tesla Factory
Background (physical plant)
Transforming Fremont Assembly into NUMMI Headquarters Fremont,
The end of the joint venture California, U.S.
Reusing the factory Products Compact cars and
Models produced trucks
Services Automotive
See also
manufacturing
References
Owner General Motors
External links and Toyota
Website nummi.com (http
s://web.archive.or
History g/web/2007102411
4845/http://www.nu
mmi.com/)
Background (defunct)

Before NUMMI, the site was the former Fremont Assembly that General Motors operated between 1962
and 1982.[3][4][5] Employees at the Fremont plant[6] were "considered the worst workforce in the
automobile industry in the United States," according to a later recounting by a leader of the workers own
union, the United Auto Workers (UAW).[7][8]

GM as a company was departmentalized (design, manufacturing) as per Henry Ford's division of labor, but
without the necessary communication and collaboration between the departments. There was an adversarial
relationship between workers and plant supervisors, with management not considering the employees view
on production, and quantity was preferred over quality.[8][9][10] Like all American car plants, the
production lines at Fremont seldom stopped, and when mistakes were made cars continued down the line
with the expectation that they would be fixed later.[8] By the early 1980s, the adversarial relationship had
deteriorated to the point where employees drank alcohol, smoked marijuana (at the time, an illegal activity),
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."[7][8]

Attempts to discipline workers were often met with grievances or even strikes, putting the plant into near-
continuous chaos. By 1982, GM had had enough and closed Fremont Assembly and laid off its thousands
of workers.[8]

Transforming Fremont Assembly into NUMMI

At about the same time, GM was struggling to profitably build high-quality and fuel-efficient small cars that
consumers demanded after the energy crisis of the 1970s. Consumers started turning to foreign automakers
for these vehicles, prompting the U.S. Congress to consider import restrictions to protect the domestic auto
industry.[7][8] That led GM and Toyota to team up and create New United Motor Manufacturing, Inc.
(NUMMI), a joint venture to manufacture vehicles to be sold under both brands.[5]

GM saw the joint venture as a way to get access to quality small cars[8] and an opportunity to learn about
the Toyota Production System and The Toyota Way, a series of lean manufacturing and management
philosophies that had made the company a leader in the automotive manufacturing and production
industry.[11] For Toyota, the factory gave the company its first manufacturing base in North America
allowing it to avoid tariffs on imported vehicles[12] and saw GM as a partner that could show them how to
navigate the American labor environment, particularly relations with the United Auto Workers
union.[13]: 4 , 1 0 [14][8]

The companies made the unusual choice to remake the troubled Fremont Assembly into the new NUMMI
plant. The leadership of the UAW union insisted on re-hiring the same union leadership that had overseen
GM's worst workforce. GM was against it, but Toyota agreed, believing that their system could turn things
around. However, Toyota insisted that the plant would need to operate differently and old seniority rules
wouldn't apply. The workers hated the proposed changes, but desperately needed jobs. Ultimately, over
85% of NUMMI's initial workforce were the workers laid off at Fremont Assembly in 1982.[13]: 1 1–12  GM
would also assign 16 managers to the plant and Toyota sent 30 managers and production coordinators from
Japan, including the CEO, Tatsuro Toyoda, part of the company's founding family.[15]

Ahead of the reopening of the plant, Toyota sent many of the workers to Toyota's Takaoka plant in
Japan[13]: 9   to learn the Toyota Production System and actually work for a few days on the assembly
line.[7][8] Workers who made the transition identified the emphasis on quality and teamwork by Toyota
management as what motivated a change in work ethic.[7][8] Among the cultural changes were the same
uniform, parking and cafeterias for all levels of employment in order to promote a team concept, and a no-
layoff policy.[13]: 1 4, 1 6, 3 3  Built-in process quality and employee suggestion programs for continual
improvement[13]: 3 3  were other changes.[13]: 1 8  Consensus decision-making reached management level, in
contrast with the old departmentalization.[13]: 2 0 

By December 1984 (two years after the closure), the first car, a yellow Chevrolet Nova, rolled off the
assembly line. The plant started producing the Toyota Corolla in September 1986.[5] Almost right away, the
NUMMI factory was producing cars at the same speed as the Japanese factories and Corollas produced at
NUMMI were seen as equal in quality to those produced in Japan with a similar number of defects per 100
vehicles.[13]: 2 3 [7][8]
In 1991, Toyota started building the Toyota Hilux (also known as the Toyota Pickup) at NUMMI, allowing
the company to completely avoid the chicken tax, a 25 percent tariff on light trucks imposed in 1964. The
company had been avoiding a big portion of the tax since 1972 by importing the truck as an incomplete
chassis cab (which included the entire truck, less the truck bed) which only faced a 4% tariff.[16] Once in
the United States, Toyota Auto Body California (TABC) would produce the truck beds and attach them to
the trucks. TABC was the first manufacturing investment in the U.S. for Toyota.[17] In January 1995, it
began producing the Toyota Tacoma pickup truck.[5]

NUMMI did face some financial challenges, with cars costing more to build than at other GM plants and
only operating at 58.6% capacity by 1988.[18] The plant had not reached break-even by 1991.[13]: 1 4 

Up to May 2010, NUMMI built an average of 6,000 vehicles a week, or nearly eight million cars and
trucks since opening in 1984.[7][8] In 1997, NUMMI produced 357,809 cars and trucks.[19] Production
reached its annual peak of 428,633 units in 2006.[2]

The end of the joint venture

Toyota took the lessons it learned from NUMMI and went on to establish the wholly-owned Toyota Motor
Manufacturing USA (later renamed Toyota Motor Manufacturing Kentucky) and Toyota Motor
Manufacturing Canada plants in 1986, and by 2009 the company was operating a dozen manufacturing
facilities in North America.[20] However, NUMMI remained Toyota's only unionized plant in the U.S.[21]

GM executives, particularly CEO Jack Smith, attempted to spread the Toyota Production System to other
assembly plants,[22][23][2] but it proved largely unsuccessful. Despite having a front row seat to learn about
the production system, by 1998 (15 years later) GM had still not been able to implement lean
manufacturing in the rest of the United States,[8][24] though GM managers trained at NUMMI were
successful in introducing the approach to its unionized factories in Brazil.[25]

By 2009, GM was in serious financial trouble and filed for Chapter 11 bankruptcy reorganization. In April
the company confirmed its commitment to NUMMI[26] and in June announced that it was scrapping the
Pontiac brand which would end production of the Corolla-derived Pontiac Vibe at NUMMI by August
2009.[27][28][29] That triggered several months of discussions between the automakers, trying to find
products that could be produced at the factory for both companies, with Toyota even offering to build a
version of its Prius hybrid for GM at the factory.[30][31]

Fremont Mayor Bob Wasserman, city officials and California Governor Arnold Schwarzenegger lobbied
the automakers to find a product and keep NUMMI open.[32][33][34][35] State officials crafted sales tax
exemption on new factory equipment to preserve NUMMI.[36] A regional committee was formed in
February 2010 to investigate the closure of the plant,[37] and the facility was appraised while operating.[38]

The talks ultimately failed and in June 2009 the GM announced that it would pull out of
NUMMI.[39][40][41] On August 27, 2009, Toyota announced that it would also discontinue production at
NUMMI by March 2010, marking the first time the company had ever closed a factory.[42]

In November 2009 call with autoworkers Toyota's head of U.S. sales said that though it was 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.[43] Autoworkers prepared for
the shut down by refreshing skills and planning for career transitions.[44][45] In March 2010, 90% of the
workers at the plant approved a $281 million severance package from Toyota that had been negotiated by
the UAW, averaging $54,000 to the plant's 4,700 employees.[46][47]
Production of the Corolla in North America was shifted to Toyota Motor Manufacturing Canada until the
new Toyota Motor Manufacturing Mississippi assembly plant could open in October 2011. Production of
the Tacoma had already partially shifted to Toyota Motor Manufacturing de Baja California in 2004, and
the remaining work shifted to Toyota Motor Manufacturing Texas.[21]

At 9:40am on April 1, 2010, the plant produced its last car, a red Toyota Corolla.[48] NUMMI sold off
equipment at an auction,[38] with robots and tooling going to Toyota's plants in Kentucky, Texas[49] and
Mississippi.[50] NUMMI sold some equipment to Tesla for $15 million.[51]

Reusing the factory

Ahead of the closure of NUMMI, several possible uses for the facility were proposed.

In January 2010, the land was considered for a new stadium for the Oakland Athletics of Major League
Baseball. It is close to the proposed site of Cisco Field, which was never formally approved.[52] On March
10, 2010, Aurica Motors announced 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 electric vehicles.[53][54]
Both proposals went nowhere.

On May 20, 2010, Tesla Motors announced a deal that would have Toyota purchase $50 million of
common stock from the fledgling electric automaker, who in turn would purchase most (210 of 370
acres)[50] of the former NUMMI site for $42 million.[55][56] The deal also included a promise that the two
companies would partner on the "development of electric vehicles, parts, and production system and
engineering support." The two companies later ended their partnership in 2017.[57]

The plant, renamed the Tesla Fremont Factory, produces the Model S, Model 3, Model X, and Model Y
vehicles.[58][59][60] As of June 2018, the plant employs 10,000 people, far greater than NUMMI.[61]

Models produced
During its time in operation, the NUMMI joint venture factory produced the following models:

Chevrolet Nova (1984–1988)

Toyota Corolla (1987–2010)
Toyota Corolla (E90) (1987–1992)
Toyota Corolla (E100) (1993–1997)
Toyota Corolla (E110) (1997–2002)
Toyota Corolla (E130) (2002–2007)
Toyota Corolla (E140) (2007–2010)
Geo/Chevrolet Prizm (1989–2002)
Toyota Hilux/Pickup (1991–1995)
Toyota Tacoma (1995–2010)
Pontiac Vibe/Toyota Voltz (2002–2009)

See also
CAMI Automotive (CAMI) — A similar joint venture in Canada between Suzuki and General
Motors from 1986 to 2009; now operating as a wholly owned GM plant.
 United Australian Automobile Industries (UAAI) — A similar joint venture in Australia
between Toyota and GM-Holden from 1989 to 1996.
Gung Ho — A 1986 comedy film portraying a similar joint venture and is used by Toyota
executives in Japan as an example of how not to manage Americans.[62]

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Retrieved July 9, 2011.

External links
Autointell NUMMI page (http://www.autointell.com/nao_companies/general_motors/gm-man
ufacturing/gm-nummi/gmnummi.htm)
Photo Tour of NUMMI (https://web.archive.org/web/20080529032814/http://www.edmunds.c
om/insideline/do/Features/articleId=105515) from Edmunds.com
JD Power Gold Plant Award for GM (https://web.archive.org/web/20090113183722/http://ww
w.jdpower.com/reports/gm/)
NPR's This American Life's full hour story of the creation and demise of NUMMI - episode
#403 (http://www.thisamericanlife.org/radio-archives/episode/403/nummi) from This
American Life
NPR's This American Life's 2015 update on NUMMI's story - episode #561 (http://www.thisa
mericanlife.org/radio-archives/episode/561/nummi-2015) from This American Life
NUMMI production over the years (https://assets.bwbx.io/images/users/iqjWHBFdfxIU/ihjdq
WNpPSfE/v1/800x-1.png)
Retrieved from "https://en.wikipedia.org/w/index.php?title=NUMMI&oldid=1081069714"

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