News about NUMMI, Vibe quality problems and Toyota/GM Cross

[Jahntassa]

http://biz.yahoo.com/djus/040213/2036000935_1.htmlGM, Toyota Vow Commitment to Manufacturing VentureFriday February 13, 8:36 pm ETBy Norihiko Shirouzu, Staff Reporter of The Wall Street JournalSAN FRANCISCO -- General Motors Corp. (NYSE:GM - News) and Toyota Motor Corp. (NYSE:TM - News) vowed to continue to cooperate and operate a small-vehicle manufacturing venture in California to share ideas in manufacturing and other aspects of the business.But as the world's two-biggest auto makers Thursday celebrated the 20th anniversary of the venture, New United Motor Manufacturing Inc., in Fremont, Calif., reasons for its existence were becoming less clear.Both companies have more or less fulfilled their initial objectives in forming the joint venture, with GM absorbing the secrets of Toyota's lean manufacturing to improve vehicle quality at its own plants in North America and Toyota learning from GM the ins and outs of running manufacturing facilities on U.S. soil.The venture's president and chief executive, Yuki Azuma, also said the plant was fighting to quell one of the worst spells of quality problems in its history over the past two years, particularly with the Pontiac Vibe, a small hatchback derived from Toyota's Corolla car. The plant began producing the redesigned Corolla for Toyota and the Vibe for GM to sell in the U.S. in 2002. The venture shipped 74,223 Vibes to GM last year."We have been trying to improve quality [of the Vibe], but efforts have fallen short of meeting GM's expectations," said Mr. Azuma, a Toyota executive.At one point during the second quarter of 2002 after launching the Vibe, the venture had to park nearly 1,000 cars inside the plant and in parking lots outside for a few days while its workers tried to fix assembly mistakes.Mr. Azuma declined to be more specific about what stalled production at the plant then, but noted the car has had fit-and-finish problems involving the vehicle's body panels, which he said have often become a source of customer complaints about noise.Indeed, a person familiar with the venture's operations recently said the Vibe was one of the worst-quality vehicles on its Pontiac product lineup -- a cause of concern at GM, according to that individual.The venture, which produced 395,000 vehicles last year, makes the Toyota Tacoma, a compact pickup truck, in addition to the Corolla and the Vibe.Profits Have Been ErraticMr. Azuma, who last year replaced Kanji Ishii of Toyota as the plant's top manager, said the venture has been fairly erratic in its ability to make money, having lost money on average once every three years in large part because of a costly changeover of manufacturing tools to launch a new or redesigned model. He also attributed the plant's inability to make money more consistently to high costs of doing business in California that stem from steeper labor rates, energy expenses and taxes, among other factors.Still, Mr. Azuma said vehicle quality has improved vastly since early 2002 as a result of joint efforts by GM and Toyota to remedy the problem. The improved quality, coupled with efficiency gains the plant has made in the recent past, should allow the venture to make money more consistently and pay dividends for the first time ever to GM and Toyota in three to four years, he noted. The venture reported operating profits in 2003, said Mr. Azuma, without elaborating further.When GM and Toyota began the venture 20 years ago, the world's biggest auto maker sought to learn from "a real-time example" of Toyota's efficient lean- manufacturing system, while Toyota through the effort looked to see whether its Japan-bred manufacturing methods could be transplanted in the U.S.Today, GM claims it has improved its manufacturing process so much so that it is ready to share some of its own "best practices" in car-building with Toyota, GM's chairman and chief executive, Rick Wagoner, told a press conference Thursday.Toyota, meanwhile, has become a major automotive-manufacturing force in North America over the past two decades, operating four assembly plants in North America in addition to the joint venture. Its sixth plant is due to commence production of a full-size pickup truck in San Antonio in 2006.Committed To The PartnershipSome observers say Toyota and GM are growing out of the venture, but both auto makers stressed repeatedly Thursday that they are committed to keep their partnership.The effort has "established ambitious goals including best-in-class quality and productivity performance," said Mr. Wagoner. "We applaud those lofty goals, and will continue to support their achievement by sharing GM's best practices in quality and productivity, and by continuing to commit our technology and management resources to NUMMI."Toyota President Fujio Cho echoed Mr. Wagoner, saying, "Today, 20 years later, I am more confident than ever about the bright future for (NUMMI). And at Toyota, we believe stronger than ever in the importance of partnerships."Mr. Wagoner said one key reason why the auto maker is interested in continuing its relationship with Toyota is because of a vehicle like the Pontiac Vibe, a Toyota-designed car, that GM has been able to buy from the plant without making a costly investment in developing a vehicle on its own. The Vibe is one of Pontiac's best-selling models.Mr. Azuma said the venture was worthwhile even after 20 years because manufacturing technology evolves constantly and NUMMI allows both companies to help hone their production processes through sharing ideas and working on the same assembly line together. He said the venture also continues to allow Toyota to learn from GM in how to deal and work with unionized American workers.-By Norihiko Shirouzu; The Wall Street Journal; 313-963-7810

[NSimkins]

Quote »At one point during the second quarter of 2002 after launching the Vibe, the venture had to park nearly 1,000 cars inside the plant and in parking lots outside for a few days while its workers tried to fix assembly mistakes.I wonder what those may have been. I do know my Vibe was missing 2 nuts that held the cruise control/speed regulator bracket to the body and it was just kinda hanging out on 2 posts with no nuts. I don't think they could have fallen off since when I did get 2 nuts to secure the bracket, I could find no way for them to wiggle off easily (special threading).Quote »said the Vibe was one of the worst-quality vehicles on its Pontiac product lineup -- a cause of concern at GM, according to that individual.Wow.. my personal experience with other late model Pontiac's would show the exact OPPOSITE. I would agree the Vibe had its first year issues but I wouldn't qualify that as 'worst-quality' IMHO.I'm glad to see, by this article, that efforts are being made to improve the quality at the plant which will in turn help the consumers.

[millster]

That's interesting. If the Vibe was the worst quality Pontiac, that says a lot for Pontiac. Mine is an early (April 2002) model and aside from some rattles and a few minor cosmetic problems, it's not too bad at all. At that, the rattles aren't too bad. Compared to my old Saturn it's nearly silent.

[rasermon]

In pursuance to achieve work excellence, what happen with ISO 9002certification and quality procedures at NUMMI in 2002?

[Vibe Rater]

The Vibe has earned its reputation of poor quality. Starting with the obvious paint quality issues to dash rattle issues to the battery issues, all of which GM has failed to adequately address. In my opinion, based on what I read in the article, I would say the viability of NUMMI is at least questionable. I think the only reason they keep it open is to give Toyota and GM executives a reason to go to Caleefornia. As for ISO, it's a fraud anyway. Every single plant has it anyway, so there is no real advantage to being ISO certified anymore. I've watched my plant go through ISO certification and it is a joke. In a nutshell, it required us to LOWER are standards, to guarantee we could meet them consistently. It doesn't matter what those standards are, as long as you meet them consistently.

[ragingfish]

Quote, originally posted by millster »Compared to my old Saturn it's nearly silent. You know what they say -- It's different in a Saturn!

[cohocarl]

Quote, originally posted by silverawd26 »So instead you guys could say do 100 cars a day, but make sure everything is just right and there is nothing wrong, but GM wants you to crank out say 500 cars and not pay attention to your work? Not entirely true..............crank out the 500 with fewer people because your dept. is over "benchmark". Oh ya......the machinery on the line required to build the car needs repair, but there's no $$ in the budget......Oh ya....and the parts they're shipping up from Mexico to build the cars with are junk.........Oh ya.....and when the end product is a P.O.S., it's blamed on the American blue collar worker.I could go on and on.

[cohocarl]

Quote, originally posted by silverawd26 »Coho, I just want you to know that I am not bashing the American Auto Industry. Rob, no no no..I honestly wasn't implying you were bashing, and I'm really sorry you took it that way. I was actually trying to add to your comment.

[cohocarl]

Ok... I thought that you thought that I thought that you thought that I thought.............

[Vibe Rater]

No no. What I meant was, for example, if you had to check a certain amount of parts per hour, say 10% of the parts each hour, but you weren't able to ALWAYS do that because of time restraints or unforseen circunstances, then you are NOT ISO compliant. So, you would LOWER the standard to say check only 5% of the parts each hour, but you were certain to be able to do that, no matter what, then you are ISO compliant. As a result, you may be checking FEWER parts, but you qualify for ISO certification. Kapeesh?

[satur9]

the body and build may not be toyota quality but at least the drivetrain is. its a shame to read stuff like that.but aside from the paint the other problems ive had was warrenty covered and so in general im happy with my vibe. no rattles at all

[scherry2]

Quote, originally posted by rasermon »In pursuance to achieve work excellence, what happen with ISO 9002certification and quality procedures at NUMMI in 2002? probably the same way it goes at fort wayne assembly the ISO 9002 is for show. corners are cut ect... all the time, EXCEPT when an ISO audit comes around. sad but trueGM wants Quantity out the back door at the assmbly level not Quality.

[tatooine315]

Ok where does that leave us? It worries me that they say it is one of the worst quality cars.. I love my Vibe and have only experienced minor problems.. I bought it because I couldnt afford a 35,000 car and new it was a cheaper, stylish, economical vehicle...Hey my cars have always rattled, (Toyota Corolla. Huyundai)I mean so many people complain on this forum and I learn so much on it but if your going to stress about a little rattle (which I have not heard yet thank God) or the loud engine (which my brother is a TOYOTA dealer mechanic and says thats how Toyota engines sound because they are chain driven motors) It just has me worried???? And this comes from someone who knows so little about cars..I mean I hope this is not another YUGO....I was hoping to have my VIBE for 5 years or more????Just wanted to vent my worries.. Because I love my VIBE and The quality is exactly what I expected for $16,000. If I could Id by a Lexus or a Murrano which I am sure dont Rattle or are noisy...But then that means I could afford $45,000....Well any way I hope MY investment was a good one..Thanks.

[scherry2]

Quote, originally posted by Salsa! »The ISO certification never mean that a company is perfect or has work excellence, it just means that the production steps are identified precisely and that they are following all the time.Correct! it says you will install a specific Item in a certain sequence or that you will file certain documents a certain way. an orginization tool.but most assembly plants (GM anyway) have what they call a C.A.R.E. line (a customer receives a form a few weeks after delivery and is asked to fill out this form and return it, this is then compiled with what dealers have received for complaints)after the car is fully assembled it travels down a C.A.R.E. line where it is inspected for defects, these defects are customer driven. meaning; the inspectors inspect for electrical, paint, interior and body fits along with defects seen at the customer level. many things are caught but nothing is 100% just ask NASA Tatoonie as for having a car that will last? yes you do. yes there are lemons and some genvibers own those cars with BIG problems but they are very low in occurances. and the major problems have recalls or TSB'sand don't beleive just because you pay more $$$ for a car doesn't mean it won't have rattles or squeaks or any defects, that is far from the truth. cars and trucks are all assembled on a line by as few people as the manufacturer would like. these people are just like you or me (but we like to be refered to as "plant rats" ). if anyone ever gets the chance tour a local assembly plant if they can.