Editing NUMMI (section)

=== 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.<ref name="Toyota 2019">{{Cite press release|title=2019 Toyota Operations North America Fact Sheet|date=December 2019|url=https://www.toyota.com/usa/pdfs/toyota-operations-map-north-america.pdf |access-date=4 September 2020}}</ref> However, NUMMI remained Toyota's only unionized plant in the United States.<ref name="inthesetimes20090828">{{cite news|last=Arrieta|first=Rose |date=August 28, 2009|title=Toyota to Close Only Union Factory In U.S.|work=inthesetimes.com|url=http://inthesetimes.com/working/entry/4814/more_worker_casualties_in_a_bleak_economy |access-date=January 7, 2018}}</ref>

GM executives, particularly CEO [[John F. Smith Jr.]], attempted to spread the Toyota Production System to other assembly plants,<ref name="peakprod" /><ref name="popmech">{{cite web|date=April 2, 2010|title=Goodbye to NUMMI - How a Manufacturing Plant Changed the Culture of Car-Making|url=http://www.popularmechanics.com/cars/a5514/4350856/ |url-status=live|archive-url= https://web.archive.org/web/20160919045747/http://www.popularmechanics.com/cars/a5514/4350856/ |archive-date=September 19, 2016|access-date=October 10, 2016|work=Popular Mechanics|df=mdy}}</ref><ref name="change">{{cite web|date=September 14, 2008|title=NUMMI joint venture in California was a classroom for change|url=http://www.autonews.com/article/20080914/OEM/309149827/nummi-joint-venture-in-california-was-a-classroom-for-change |url-status=live|archive-url= https://web.archive.org/web/20161010095750/http://www.autonews.com/article/20080914/OEM/309149827/nummi-joint-venture-in-california-was-a-classroom-for-change |archive-date=October 10, 2016|access-date=October 10, 2016|work=Automotive News|df=mdy}}</ref> 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,<ref name="Langfitt 2015" /><ref name="hbr2009-09">{{cite journal|last=Gomes-Casseres|first=Ben |date=September 1, 2009|title=Nummi: What Toyota Learned and GM Didn't|url=https://hbr.org/2009/09/nummi-what-toyota-learned |url-status=live|archive-url= https://web.archive.org/web/20160811152723/https://hbr.org/2009/09/nummi-what-toyota-learned |archive-date=August 11, 2016|access-date=June 5, 2017|journal=[[Harvard Business Review]]}}</ref> though GM managers trained at NUMMI were successful in introducing the approach to its unionized factories in Brazil.<ref name="brazil98">{{cite news|last=Bradsher|first=Keith |date=June 17, 1998|title=G.M.'s Plant in Brazil Raises Fears Closer to Home|work=The New York Times|url=https://www.nytimes.com/1998/06/17/business/gm-s-plant-in-brazil-raises-fears-closer-to-home.html?pagewanted=all |access-date=April 7, 2010 |archive-url= https://web.archive.org/web/20190306135856/https://www.nytimes.com/1998/06/17/business/gm-s-plant-in-brazil-raises-fears-closer-to-home.html?pagewanted=all |archive-date=March 6, 2019 |url-status=live}}</ref>

By 2009, GM was in serious financial trouble and [[General Motors Chapter 11 reorganization|filed for Chapter 11 bankruptcy reorganization]]. In April the company confirmed its commitment to NUMMI<ref>{{cite web |last1=Popa |first1=Bogdan |title=GM Plans New Toyota Joint Product to Replace Pontiac Vibe |url=https://www.autoevolution.com/news/gm-plans-new-toyota-joint-product-to-replace-pontiac-vibe-6171.html |website=autoevolution |archive-url= https://web.archive.org/web/20091002191516/https://www.autoevolution.com/news/gm-plans-new-toyota-joint-product-to-replace-pontiac-vibe-6171.html |archive-date=October 2, 2009 |language=en |date=28 April 2009 |url-status=live |quote=We're clearly not backing away from our partnership at NUMMI. There's no issue of us backing away from NUMMI.}}</ref> 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.<ref name="GmDiscontinuation">{{cite web|title=General Motors Statement Regarding Discontinuation of Pontiac Vibe Production at NUMMI Facility|access-date=June 20, 2009 |url=https://media.gmc.com/media/us/en/gm/news.detail.html/content/Pages/news/us/en/2009/Jun/0618_PontiacNUMMI.html |website=media.gm.com |archive-url= https://web.archive.org/web/20220107015127/https://media.gmc.com/media/us/en/gm/news.detail.html/content/Pages/news/us/en/2009/Jun/0618_PontiacNUMMI.html |archive-date=7 January 2022 |language=en |date=18 June 2009 |url-status=live}}</ref><ref>{{cite web |title=GM to end Pontiac Vibe output at joint plant at Toyota. - Free Online Library |url=https://www.thefreelibrary.com/GM+to+end+Pontiac+Vibe+output+at+joint+plant+at+Toyota-a0204357717 |website=www.thefreelibrary.com |archive-url= https://web.archive.org/web/20220107015356/https://www.thefreelibrary.com/GM+to+end+Pontiac+Vibe+output+at+joint+plant+at+Toyota-a0204357717 |archive-date=7 January 2022 |date=18 June 2009 |quote=About 460,000 Vibes were produced between 2002 and the end of May this year at New United Motor Manufacturing Inc. |url-status=live}}</ref><ref>{{cite web |last1=Nakata |first1=Hiroko |title=GM ends NUMMI deal with Toyota |url=https://www.japantimes.co.jp/news/2009/07/01/business/gm-ends-nummi-deal-with-toyota/ |website=[[The Japan Times]] |archive-url= https://web.archive.org/web/20210227155646/https://www.japantimes.co.jp/news/2009/07/01/business/gm-ends-nummi-deal-with-toyota/ |archive-date=February 27, 2021 |date=1 July 2009 |url-status=live}}</ref> 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 [[Toyota Prius|Prius]] hybrid for GM at the factory.<ref name="reuters20090710">{{cite news|last=Kim|first=Soyoung |date=July 10, 2009|title=UPDATE 1-Toyota may drop U.S. joint venture with GM|publisher=[[Reuters]] |url=https://www.reuters.com/article/rbssConsumerGoodsAndRetailNews/idUSN1053085920090710 |access-date=July 13, 2009 |archive-url= https://web.archive.org/web/20170301032922/https://www.reuters.com/article/rbssConsumerGoodsAndRetailNews/idUSN1053085920090710 |archive-date=March 1, 2017 |url-status=live}}</ref><ref name="Bloomberg20090711">{{cite web|last1=Fujimura|first1=Naoko |last2=Komatsu|first2=Tetsuya |date=July 11, 2009|title=Toyota May Dissolve California Plant Venture Abandoned by GM|url=https://www.bloomberg.com/apps/news?pid=20601101&sid=ay2RIu_K3uY4 |access-date=July 13, 2009|work=Bloomberg.com}}</ref>

Fremont Mayor [[Bob Wasserman]], city officials and California Governor [[Arnold Schwarzenegger]] lobbied the automakers to find a product and keep NUMMI open.<ref>{{cite news|last=Abate|first=Tom |date=August 6, 2009|title=State offers incentives to save Nummi plant|work=SFGate|url=http://www.sfgate.com/business/article/State-offers-incentives-to-save-Nummi-plant-3221710.php |access-date=November 3, 2015 |archive-url= https://web.archive.org/web/20210121222242/http://www.sfgate.com/business/article/State-offers-incentives-to-save-Nummi-plant-3221710.php |archive-date=January 21, 2021 |url-status=live}}</ref><ref>{{cite news|last=Bensinger|first=Ken |date=July 16, 2009|title=State lawmakers scramble to keep Toyota plant open|work=Los Angeles Times|url=https://www.latimes.com/archives/la-xpm-2009-jul-16-fi-autos-nummi16-story.html |access-date=November 3, 2015 |archive-url= https://web.archive.org/web/20170228130031/http://articles.latimes.com/2009/jul/16/business/fi-autos-nummi16 |archive-date=February 28, 2017 |url-status=live}}</ref><ref>{{cite web|last1=Schwarzenegger|first1=Arnold|author-link1=Arnold Schwarzenegger |last2=Haggerty|first2=Scott |last3=Wasserman|first3=Bob|author-link3=Bob Wasserman |date=August 25, 2009|title=Restoring California's Automotive Industry|url=http://www.fremont.gov/documentcenter/home/view/2277 |access-date=November 3, 2015|website=fremont.gov |archive-url= https://web.archive.org/web/20210311135117/http://www.fremont.gov/documentcenter/home/view/2277 |archive-date=March 11, 2021 |url-status=live}}</ref><ref name="kcbs">{{cite news|date=January 6, 2012|title=Memorial Held For Fremont Mayor Wasserman|work=[[KCBS-TV]]|url=http://sanfrancisco.cbslocal.com/2012/01/06/memorial-held-for-fremont-mayor-wasserman/ |access-date=January 21, 2012}}</ref> State officials crafted sales [[tax exemption]] on new factory equipment to preserve NUMMI.<ref name="SFgate">{{cite web|first1=Tom |last1=Abate |first2=David R. |last2=Baker |date=May 21, 2010|title=Tesla joins with Toyota to reopen Nummi plant|url=http://www.sfgate.com/bayarea/article/Tesla-joins-with-Toyota-to-reopen-Nummi-plant-3263888.php |archive-url= https://web.archive.org/web/20160826193740/http://www.sfgate.com/bayarea/article/Tesla-joins-with-Toyota-to-reopen-Nummi-plant-3263888.php |archive-date=August 26, 2016|access-date=June 5, 2017|publisher=SFgate|quote=State and local officials, who had crafted tax incentives, including worker training provisions and an exemption from sales taxes for new factory equipment to preserve Nummi}}</ref> A regional committee was formed in February 2010 to investigate the closure of the plant,<ref name="shutdown panel">{{cite web|date=February 24, 2010|title=Toyota's Proposed Plant Shutdown to Be Scrutinized by Panel of California Leaders|url=http://www.theautochannel.com/news/2010/02/24/467035.html |access-date=March 2, 2010 |archive-url= https://web.archive.org/web/20201126130107/http://www.theautochannel.com/news/2010/02/24/467035.html |archive-date=November 26, 2020 |url-status=live}}</ref> and the facility was [[Business valuation|appraised]] while operating.<ref name="Maynards">{{cite web|title=New United Motor Manufacturing Appraisals|url=http://www.equipmentappraisalsandauctions.com/new-united-motor-manufacturing.html |archive-url= https://web.archive.org/web/20160613192846/http://www.equipmentappraisalsandauctions.com/new-united-motor-manufacturing.html |archive-date=June 13, 2016|access-date=June 5, 2017|work=Maynards}}</ref>

The talks ultimately failed and in June 2009 the GM announced that it would pull out of NUMMI.<ref name="LaTimesGmEnds">{{cite news|title=GM ends 25-yr-old joint venture with Toyota to build cars, trucks at Calif. plant|work=Los Angeles Times|url=http://www.latimes.com/business/nationworld/wire/sns-ap-us-gm-toyota,0,5435374.story |url-status=dead|access-date=June 30, 2009|archive-url= https://web.archive.org/web/20090702082237/http://www.latimes.com/business/nationworld/wire/sns-ap-us-gm-toyota,0,5435374.story |archive-date=July 2, 2009|df=mdy}}</ref><ref name="GN20090828">{{cite web|last=Thomas|first=Ken |date=August 28, 2009|title=Toyota plans to end production at Calif. plant|url=https://www.google.com/hostednews/ap/article/ALeqM5iQBEwXHC6U1bXKTzzQiTXZbJnsVQD9ABC1P80 |access-date=August 29, 2009|work=Google News}}{{dead link|date=June 2024|bot=medic}}{{cbignore|bot=medic}}</ref><ref name="SFGate20090828">{{cite news|last=Abate|first=Tom |date=August 28, 2009|title=Toyota closing Fremont Nummi plant|work=SFGate|url=http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/08/27/BU6919EL3P.DTL |access-date=August 29, 2009}}</ref> 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.<ref name="Bloomberg20090828">{{cite web|last1=Ohnsman|first1=Alan |last2=Inoue|first2=Kae |date=August 28, 2009|title=Toyota Will Shut California Plant in First Closure|url= https://www.bloomberg.com/apps/news?pid=20601087&sid=aJlxuxndoOsM |access-date=August 29, 2009|work=Bloomberg.com}}</ref>

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 [[supply chain|supplier lines]]" in the Midwest "just doesn't make business sense" for Toyota.<ref name="KGO20091117">{{cite web|last=Matthews|first=Mark |date=November 17, 2009|title=Toyota sales head talks about NUMMI closure|url=https://abc7news.com/archive/7124549/ |access-date=November 22, 2009|work=abclocal.go.com/kgo |archive-url= https://web.archive.org/web/20170301090834/http://abclocal.go.com/kgo/story?section=news/business&id=7124549 |archive-date=March 1, 2017 |url-status=live}}</ref> Autoworkers prepared for the shut down by refreshing skills and planning for career transitions.<ref name="CCTimes20091116">{{cite web|last=Avalos|first=George |date=November 16, 2009 |title=NUMMI auto factory closing: End of the line|url=http://www.contracostatimes.com/business/ci_13766774?source=rss|url-status=live |archive-url= https://web.archive.org/web/20160303222546/http://www.contracostatimes.com/business/ci_13766774?source=rss |archive-date=March 3, 2016|access-date=November 22, 2009|work=contracostatimes.com}}</ref><ref name="SFChronicle20091114">{{cite news|last=Abate|first=Tom |date=November 14, 2009|title=A huddle to help Nummi workers find new jobs|work=sfgate.com|url=http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/11/13/BUP11AK7KA.DTL&type=business |access-date=November 22, 2009}}</ref> 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.<ref>{{cite web|last=Avalos|first=George |date=March 18, 2010|title=NUMMI workers overwhelmingly approve shutdown agreement|url=http://www.eastbaytimes.com/2010/03/18/nummi-workers-overwhelmingly-approve-shutdown-agreement/ |access-date=April 7, 2017|publisher=[[East Bay Times]]}}</ref><ref>{{cite news|last=Tobak|first=Steve |date=April 2, 2010|title=Blame GM, Not Toyota, for NUMMI Plant Closure|work=CBS|location=US|url= http://www.cbsnews.com/news/blame-gm-not-toyota-for-nummi-plant-closure/|url-status=live |access-date=October 10, 2016|archive-url= https://web.archive.org/web/20161010120336/http://www.cbsnews.com/news/blame-gm-not-toyota-for-nummi-plant-closure/ |archive-date=October 10, 2016|df=mdy}}</ref>

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]].<ref name="inthesetimes20090828" />

At 9:40am on April 1, 2010, the plant produced its last car, a red Toyota Corolla.<ref name="NUMMI Plant Closure">{{cite web|date=March 31, 2010|title=NUMMI Plant Closure Ends Toyota-GM Venture|website=[[NPR]] |url=https://www.npr.org/templates/story/story.php?storyId=125430405 |access-date=March 31, 2010}}</ref> NUMMI sold off equipment at an auction,<ref name="Maynards" /> with robots and tooling going to Toyota's plants in Kentucky, Texas<ref>{{cite web|last=Ohnsman|first=Alan |date=September 18, 2011|title=Toyota gave old robots new tools to trim U.S. Camry price 2%|url=http://www.autonews.com/article/20110918/OEM01/309189998/toyota-gave-old-robots-new-tools-to-trim-u.s.-camry-price-2 |access-date=June 5, 2017|publisher=[[Automotive News]]/Bloomberg|quote=Along with the production robots transferred to Toyota's Georgetown, Ky., plant that makes most of the Camrys sold in North America, Nummi equipment was also acquired by Toyota's San Antonio plant and electric-car maker Tesla Motors Inc. |archive-url= https://web.archive.org/web/20200719053238/http://www.autonews.com/article/20110918/OEM01/309189998/toyota-gave-old-robots-new-tools-to-trim-u.s.-camry-price-2 |archive-date=July 19, 2020 |url-status=live}}</ref> and Mississippi.<ref name="Hull2010">{{cite web|last=Hull|first=Dana |date=September 16, 2010|title=2010: Tesla gets ready to take over the former NUMMI auto plant in Fremont|url=http://www.mercurynews.com/2010/09/16/2010-tesla-gets-ready-to-take-over-the-former-nummi-auto-plant-in-fremont/ |url-status=live|archive-url= https://web.archive.org/web/20170502023843/http://www.mercurynews.com/2010/09/16/2010-tesla-gets-ready-to-take-over-the-former-nummi-auto-plant-in-fremont/ |archive-date=May 2, 2017|access-date=June 5, 2017|publisher=The Mercury News / Bloomberg|quote=The entire NUMMI facility covers about 370 acres. Tesla is buying 210 acres, a parcel that contains several buildings that have approximately 5.5 million square feet of floor space. NUMMI’s existing press line will be taken apart and sent to Toyota’s plant in Blue Springs, Miss.}}</ref> NUMMI sold some equipment to Tesla for $15 million.<ref>{{cite web|date=August 20, 2010|title=Tesla Buys Nummi Assets|url=http://www.thestreet.com/story/10841041/1/tesla-buys-nummi-assets.html |archive-url= https://web.archive.org/web/20151014211308/http://www.thestreet.com/story/10841041/1/tesla-buys-nummi-assets.html |archive-date=October 14, 2015|access-date=June 5, 2017}}</ref>