The history of Toyota started in 1933 with the company being a division of Toyoda Automatic
Loom Works devoted to the production of automobiles under the direction of the founder's son,
Kiichiro Toyoda.
Kiichiro Toyoda had traveled to Europe and the United States in 1929 to investigate automobile
production and had begun researching gasoline-powered engines in 1930.
Toyoda Automatic Loom Works was encouraged to develop automobile production by the Japanese
government, which needed domestic vehicle production, due to the war with China.
In 1934, the division produced its first Type A Engine, which was used in the first Model
A1 passenger car in May 1935 and the G1 truck in August 1935.
Production of the Model AA passenger car started in 1936.
Early vehicles bear a striking resemblance to the Dodge Power Wagon and Chevrolet, with
some parts actually interchanging with their American originals.
Although the Toyota Group is best known today for its cars, it is still in the textile business
and still makes automatic looms, which are now computerized, and electric sewing machines
which are available worldwide.
Name
Toyota Motor Co. was established as an independent and separate company in 1937.
Although the founding family's name was written in the Kanji "豊田", the company name was
changed to a similar word in katakana - トヨタ because the latter has 8 strokes which is
regarded as a lucky number in East Asian culture.
Since Kanji are essentially Chinese characters, in Chinese speaking markets, the company and
its vehicles are still referred to by the original Kanji name, but with Chinese pronunciation.
During the Pacific War the company was dedicated to truck production for the Imperial Japanese
Army.
Because of severe shortages in Japan, military trucks were kept as simple as possible.
For example, the trucks had only one headlight in the center of the hood.
The war ended shortly before a scheduled Allied bombing run on the Toyota factories in Aichi.
Postwar growth After World War II, Japan experienced extreme
economic difficulty.
Commercial passenger car production started in 1947 with the model SA.
The company was on the brink of bankruptcy by the end of 1949, but the company eventually
obtained a loan from a consortium of banks which stipulated an independent sales operation
and elimination of "excess manpower".
In June 1950, the company produced only 300 trucks and was on the verge of going out of
business.
The management announced layoffs and wage reductions, and in response the union went
on a strike that lasted two months.
The strike was resolved by an agreement that included layoffs and pay reductions but also
the resignation of the president at the time, Kiichiro Toyoda.
Toyoda was succeeded by Taizo Ishida, who was the chief executive of the Toyoda Automatic
Loom company.
The first few months of the Korean War resulted in an order of over 5,000 vehicles from the
US military, and the company was revived.
Ishida was credited for his focus on investment in equipment.
One example was the construction of the Motomachi Plant in 1959, which gave Toyota a decisive
lead over Nissan during the 1960s.
In 1950, a separate sales company, Toyota Motor Sales Co., was established.
In April 1956, the Toyopet dealer chain was established.
In 1957, the Crown became the first Japanese car to be exported to the United States and
Toyota's American and Brazilian divisions, Toyota Motor Sales Inc. and Toyota do Brasil
S.A., were also established.
Global presence Toyota began to expand in the 1960s with a
new research and development facility, a presence in Thailand was established, the 10 millionth
model was produced, a Deming Prize, and partnerships with Hino Motors and Daihatsu were also established.
The first Toyota built outside Japan was in April 1963, at Melbourne, Australia.
From 1963 until 1965, Australia was Toyota's biggest export market.
By the end of the decade, Toyota had established a worldwide presence, as the company had exported
its one-millionth unit.
The first Japanese vehicles to arrive in North America were five Land Cruisers in El Salvador
in May 1953.
The first Toyotas sent to Europe were two Toyopet Tiaras sent to Finland for evaluation
in June 1962, but no sales followed.
The first European importer was Erla Auto Import A/S of Denmark, who brought in 190
Crowns following a May 1963 agreement to become the distributor for Denmark, Norway, and Sweden.
The Netherlands followed in May 1964, and after having established toeholds in countries
with little or no indigenous automobile production other markets followed in 1966.
In 1968 Toyota established its first European CKD assembler, Salvador Caetano I.M.V.T. of
Portugal.
2008–2010 With high fuel prices and a weak US economy
in mid 2008, Toyota reported a double-digit decline in sales for the month of June, similar
to figures reported by the Detroit Big Three.
For Toyota, these were attributed mainly to slow sales of its Tundra pickup, as well as
shortages of its fuel-efficient vehicles such as the Prius, Corolla and Yaris.
In response, the company has announced plans to idle its truck plants, while shifting production
at other facilities to manufacture in-demand vehicles.
In January 2010, Toyota suspended sales of eight recalled vehicle models to fix accelerator
pedals with mechanical problems that could cause them to become stuck.
In December 2012, Toyota announced an agreement worth more than US$1,000 million to settle
a lawsuit involving unintended acceleration in some of its vehicles.
References
External links The Ultimate History of Toyota Motor Corporation