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Toyota’s efforts to establish an assembly plant in the United States began in 1980 as the company sought to expand its manufacturing footprint and mitigate the impact of potential tariffs on imported vehicles. Initial talks with Ford Motor Company about a joint venture broke down in July 1981, but by 1984, Toyota finalized an agreement with General Motors (GM) to create a joint-venture manufacturing plant known as NUMMI (New United Motor Manufacturing, Inc.), located in Fremont, California.
For GM, NUMMI provided access to Toyota's expertise in small car production and a chance to learn about The Toyota Way and the Toyota Production System, which emphasized quality, efficiency, and continuous improvement. For Toyota, the partnership offered an opportunity to establish its first manufacturing base in North America, avoiding tariffs on imported vehicles and gaining valuable insight into navigating the American labor environment. The plant was led by Tatsuro Toyoda, the younger brother of Toyota’s president, Shoichiro Toyoda.
NUMMI began operations in 1986, and on October 7, the first Toyota vehicle assembled in the United States, a white Corolla, rolled off the production line. The joint venture not only symbolized Toyota’s commitment to the U.S. market but also set the stage for its expansion in North American manufacturing, helping the company strengthen its foothold in one of its most important global markets.