Final answer:
Toyota entered a strategic alliance with GM in the NUMMI joint venture to utilize international trade advantages, economies of scale, and to respond to competitive pressures from global carmakers, while GM sought to learn from Toyota's efficient production systems.
Step-by-step explanation:
In the New United Motor Manufacturing, Inc. (NUMMI) joint venture, Toyota entered into a strategic alliance with General Motors (GM) to harness the benefits of international trade, seize the opportunity for economies of scale, and to meet the competitive pressures from global automakers.
During this period, American carmakers such as GM were facing strong competition from East Asian and European car manufacturers, especially from Japanese brands like Toyota and Honda, which were offering more fuel-efficient and reliable vehicles.
On one hand, Toyota aimed to gain a strategic foothold in the U.S. auto market and learn about producing cars in America while avoiding trade restrictions. On the other hand, GM wanted to gain insight into the manufacturing techniques and strategies that had made Japanese automakers like Toyota successful, particularly the Toyota Production System, which was revered for its efficiency and quality.
This strategic alliance was therefore a union of each company's desires to improve competition, innovation, and market responsiveness, ultimately producing better vehicles for consumers.