NUMMI Joint Venture
GM entered the NUMMI joint venture because it needed to build smaller cars that met the United States government's new emissions guidelines. GM had tried to build these cars on its own, but had always lost money on these smaller cars in the process. GM's quality control was, at the very least, extremely questionable, and they knew it. Toyota entered the NUMMI joint venture in order to begin building in the United States. There had been talk of the United States restricting car imports, and Toyota was at risk of losing a huge chunk of its business. Toyota had a lot of trepidation about entering the US market. It did not know how to incorporate its system into North America. So partnering with GM on NUMMI would assist them in this regard.
GM's sincerity regarding smaller, more fuel efficient vehicles was overshadowed by overconfidence that their way was the better way. GM's management had a superior attitude approach to NUMMI. Not enough of GM's senior management was humble enough to accept the fact that they could learn from a competitor. However, even GM recognized how poor their factory efficiency was. They knew that their workforce was the worst in the industry. They also knew that the Fremont plant was the worst of the worst.
Freemont Plant
GM's Fremont plant conditions were horrendous, which led to horrendous errors on the production line. Sex, drugs, and alcohol were rampant during working hours. Employees came to work drunk or high, or did not come to work at all. Absenteeism was high. Drinking on the production line was the norm. There was zero accountability, and 100% protection from the union. Wages were too high for the workers who did have any sort of work ethic to be able to find employment elsewhere. Actually, work ethic was scarce, both among the union employees and their managers. The overriding lack of