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System for American companies in automotive industry. The “lean” projects
which transformed the production works into the “lean production line”
were solved in the centre.
• Toyota Technical Center: Research and development centre with the registered
office in Michigan, cooperates with the University in Michigan.
General Motors Corporation was the largest car producer in the USA and the
second largest global car producer in 2008. GM produces cars in 35 countries over
the world. They declared bankruptcy on 1 June 2009. The bankruptcy proceedings
resulted in reorganisation of the company. The Department of the Treasury of the USA
became their majority owner. The American government invested USD 57.6 billion
in the program of problematic assets. GM sold the make Saab, liquidated the makes
Hummer, Pontiac and Saturn on 23
rd
February 2010. Currently, they own the makes
Buick, Cadillac, Chevrolet, GM Daewoo (70.1%), GMC, Holden, Opel and Vauxhall.
Power distribution in the joint venture was 50:50. Toyota invested USD 100 mil.
in cash and GM invested USD 100 mil. in a non-cash form (former factory of GM in
Fermont). Toyota was responsible for production of the TPSs and GM for marketing.
Robustness
In 1984, when NUMMI was established, 450 American managers were sent to
Japan (factory Takaoka) for education programs and trainings. Education and trainings
form an integral part of the Toyota Production System. Such processes of moving the
managers and managing employees were intensive particularly in the first years after
establishing the joint venture. The purpose of such processes was to enable the American
managers to start with application of the TPS in the USA after passing the intensive
three-week training.
Research activity
Research activity took place in the Toyota Technical Center, which was established
in Michigan to support R&D in America. The Toyota Technical Center provided
support in the area of R&D in cooperation with the University of Michigan not only
for the factory NUMMI, but also for other Toyota factories which were later established
in America.
Rebadging
Production process of two identical automobiles in one line and their sale under
different names or brands: e.g. Chevrolet Prizm was a copy of Toyota Corolla E80.
Toyota was launched on the market in 1987 and Geo Prizm in 1989. A new Geo Prizm
with the same styling as Toyota E80 and with identical quality was much less sold than
the identical Toyota Corolla. Customers simply believed that Toyotas are better cars. It
was written in the magazine Fortune in 1988 “It will take years until the reputation of
GM in the area of quality and design improves”.
Development of supply network
From the beginning of the cooperation NUMMI used an already existing supply
network of GM, because there were the suppliers supplying the inputs to the factory
residing in the surrounding of NUMMI (factory in Fermont). Toyota developed the