How was Toyota built from a textile company? 6
The Kanto earthquake and the dream of Japanese cars
The Kanto earthquake – Japan’s largest economic and political center – in 1923 was a turning point for Kiichiro Toyoda, not only because of the pain it brought but also because of the changes in Japanese people’s perception of
Cars saved many people who would have lost their lives in fires caused by the earthquake.
The process of rebuilding Japan after the historic earthquake caused the demand for trucks in Japan to increase very high.
When the earthquake happened, the future founder of Toyota was having a meeting with a college friend named Hideo Kobayashi, who had a lot of knowledge about the current state of the Japanese auto industry.
10 years after that meeting, the automobile development department of Toyoda Automatic Loom Works was officially born.
Toyota’s first automobile assembly plant seen from the outside.
In 1933, when the automobile development department of Toyoda Automatic Loom Works was established, the Japanese automobile industry almost belonged to American companies.
During this time, Kiichiro researched to design his own car line.
Because the company had no experience with the auto industry, Kiichiro decided to recruit talented people who had worked for large American companies such as General Motors or Nippon Air Brake.
Founder Kiichiro Toyoda.
The company began production in 1934, monthly vehicle production was limited to only 200 units.
In October 1936, Toyoda changed its name to Toyota because it was more suitable for public psychology – necessary for brand promotion.
Inheritance from father
Founder Kiichiro Toyoda was born in 1894 in Shizuoka Prefecture.
Being exposed to his father’s machines a lot helped Kiichiro understand how to operate them from a young age and laid the foundation for the `genchi genbutsu` spirit (getting to the root of the problem).
Kiichiro Toyoda built Toyota.
His father was born in 1867, the year that marked the beginning of modern Japan.
His father invented many devices in the textile industry, most notably the electric automatic loom operated on the principle of Jidoka (automation), the machine will stop working if a problem occurs.
Receiving a patent for a hand loom, Sakichi Toyoda did not stop there and wanted to design an electric loom.
Sakichi’s father was greatly influenced by the book `The Spirit of Self-Reliance` by author Samuel Smiles.
This spirit also helped Kiichiro’s son find the motivation for independent development for Toyota later.
`The easiest path is to take advantage of what others have worked hard to obtain and develop it as our own, the way we have depended on the West up to now. Of course there will be times when we have to
Shibaura Research Center was founded by Mr. Kiichiro Toyoda to aim for independence and autonomy in research and innovation.
Turning thoughts into actions, in May 1936, he established a research center in Shibaura – Tokyo.
The 1940s witnessed Toyota’s miraculous growth and expansion as vehicle production increased steadily over the years.
Toyota’s expansion into outside markets really began in 1957, when Toyota became the first Japanese car company to enter the US market with the Toyota Crown brand.
