Motivation at New United Motor Manufacturing, Inc (NUMMI)

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July 31, 2020
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July 31, 2020

Motivation at New United Motor Manufacturing, Inc (NUMMI)

Motivation at New United Motor Manufacturing, Inc (NUMMI)By Gary ConvisOrigins of NUMMI.The Fremont plant of General Motors opened in 1965, and after experiencing nearly decades of labour-management conflict, closed in 1982. At the time of its closing, over 6000 workers lost their jobs and nearly an equal number of grievances remained unresolved.Soon after the closing, two forces set in motion events that would lead to a reopening of the plant with very different management philosophies and practices. GM needed to build a compact car for its product line to compete with the popularity of smaller imports, and management wanted to study the production methods of Japanese auto makers. Toyota needed to manufacture automobiles closer to its major offshore markets and wondered how well its highly efficient Toyota Production System would transfer to American workers and suppliers.What emerged from these two independent management motives was an agreement to form a 50/50 joint venture to build both GM and Toyota vehicles in the Fremont plants. A separate corporate entity was formed, New United Manufacturing, Inc (NUMMI pronounce new me), and the plant was reopened in 1984 with a decidedly different approach to management.

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