Essay: Joint Venture of Toyota and General Motor
In 1984, Toyota and General Motor opened a factory as a joint venture called NUMMI (New United Motor Manufacturing Inc). The whole idea is beneficial to both parties. After the decline of mass production, GM wants to see how Toyota executes lean manufacturing and see does it applicable to put it in GM assembly line. For Toyota, it have a chance to implement their lean manufacturing first time in the United States and to explore other areas such American culture, labor practice and technology. Every year, Toyota sent several top executive to another party’ plant to observer each other’s practice, but GM just sent some random mid-level executive to Toyota’s plant. However, given the labor practices in USA, it is doubtful that lean manufacturing is applicable (Magee, 2007, page 136).
Lastly, the short sight of the American automobile leads to today fallout. Jim Press, who is now working for Chrysler, asked himself what can it invest and maximize consumer value in the future. In 2006, all American manufacture all bet on SUV boom, but this does not affect the decision made by Toyota. It thought that in this ever-changing environment and rapid rate of global warming. A hybrid car is of best interest of consumers, which is cheap and energy saving in long run. It decides to invest money on it, which is now known as Prius.
At the mean time, GM put as much money as Toyota did in secret project on SUV boom. It is reasonable at that time because SUV is trendy in 2006. Ironically, Toyota steps in to the SUV market by bringing in Tundra. In addition, while American ads are all about male rural country singers. Toyota found out that actually most drivers are elderly and female. Therefore, the ads designated to be more informative to them.
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