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AutoOnInfo.net  November 2007

Quality-Control Auditor at GM-Toyota Joint Venture NUMMI Alleges Defect Cover-Up, per San Francisco Chronicle

By James B. Bleeker

The San Francisco Chronicle reports that Katy Cameron, a New United Motor Manufacturing Inc. employee who is currently on medical leave, alleges in a complaint filed with Alameda County Superior Court, that:

1. Since 1991, her job function has been to detect defects in vehicles manufactured at NUMMI's Fremont, California manufacturing plant, prior to shipment to dealers,

2. From 2005 to 2007, she was finding an average (presumably daily) of 9 to 15 defects per vehicle,

3. Her superiors altered her defect reports "in order to lower the daily Defect Per Vehicle" count,

4. She was threatened and harassed when she complained about the alterations to her superiors.

NUMMI is a joint venture of General Motors Corporation and Toyota Motor Corporation formed in 1984 to give Toyota North-American manufacturing experience.

Per Toyota Motor Corporation fact sheets and sales figures, the NUMMI plant manufactured all of the North-American-made vehicles badged as GM Pontiac Vibes in 2006, 96% of the Toyota Tacoma pickup trucks sold in the U.S. in 2006, and 60% of the Toyota Corollas made in North America and sold in the U.S. in 2006 and 52% of all Corollas sold in the U.S. in 2006. The Tacoma percentage assumes no across-border shipments with Mexico and the Corolla percentages assume no across-border shipments with Canada. All three models are engineered by Toyota.

No mention was made as to whether the defects were corrected before shipment to the dealers, but CR Reliability-Verdict histories suggest that repairs were made at the Fremont plant or by the dealer.

Factors that may serve to lend credibility to Ms. Cameron's allegations are:

1. General Motors Corporation, with a 1999-2003 Reliability Percentrank average of .31 and a 1999-2003 Reliability Grade average of F, has a half interest in NUMMI.

2. The Fremont plant is the only UAW-unionized vehicle manufacturing plant in which Toyota has an ownership interest.

3. The Fremont plant rests in North America.

4. Toyota Motor Corporation, with a 1999-2003 RPA of .89, has in the past expressed a desire to sever its NUMMI tie with GM, with a 1999-2003 RPA of .31, and consequently may have motive to sabotage the reputation and/or quality of GM's sole vehicle with a good reliability history, i.e., one with a CR Reliability-Verdict history from the 5 most-recent model years above .5, per Consumer Reports' Cars: Best & Worst for '08. For reference, see "The Best and Worst 2008 Automobiles by CR's Reliability-Verdict History: Toyota Models Dominate Best and Account for All Perfect Reliability-Verdict Histories of 6 or More Years; GM Models Dominate Worst," AutoOnInfo.net, November 2007.

While this may be, assuming the allegations to be true, a simple instance of lower level management attempting to improve their management reputation among senior level management and/or to hold onto the their jobs, the consumer likely should proceed with considerable caution in purchasing a NUMMI vehicle, and may wish to exercise some, or more, caution when considering the purchase of a North-American-made vehicle, irrespective of manufacturer.

 

Sources: "Quality Inspector Sues GM, Toyota over Retaliation in Fremont Plant," available at www.sfgate.com and others

 

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July 2007: The 2007 Reliability-Durability Updates: For Vehicles 5-to-7 Years Old, Toyota and Honda Account for 12 of 13 Best, GM - 19 of 48 Worst: Will a Typical Toyota at 21 Years of Age Be as Troublesome as a Typical GM at 3 Years of Age?
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