Foundation: 1937
Headquarters: Toyota city, Aichi
President: Akio Toyoda
Executive Summary: Toyota Motor Corporation, one of the world’s largest automotive manufacturers, has a global footprint and a rich history tracing back to 1926 when Sakichi Toyoda founded Toyoda Automatic Loom Works to produce his automatic looms. In 1929, the sale of loom rights to the British company Platt Brothers provided funds for Sakichi’s son, Kiichiro Toyoda, to explore automotive technology. This led to the establishment of an automotive division in 1933, which later became Toyota Motors.
The first passenger car from Toyota, the Model A1, was completed in 1935 with a two-cylinder engine and a body design inspired by the Chrysler Airflow. Early government support was crucial, especially due to military needs, and the cessation of car imports in 1936 further boosted local demand. In 1937, Toyota Motor Company was formally separated from the loom works, focusing more on trucks and buses due to higher demand.
During the lead-up to World War II, facing a steel shortage, Toyota adapted by producing military trucks, enhancing their capabilities with stronger engines, greater load capacity, and four-wheel drive. Post-war, under Allied occupation, Toyota resumed car production by late 1945, launching the Model SA Toyopet in 1947, designed for Japan’s rugged post-war roads.
Learning from U.S. automotive production techniques, Toyota established a sales division in 1950, although their initial foray into the U.S. market with the Toyopet Sedan was unsuccessful. It wasn’t until the introduction of the Corona in 1965, tailored for American tastes, that Toyota gained traction in the U.S. The company then expanded internationally, setting up a Hollywood headquarters and a plant in Brazil.
Toyota further diversified by entering the luxury car market with Lexus and pioneered the mass-produced hybrid car with the Prius. Today, Toyota continuously vies for the top spot in global car sales by units. Its annual revenue is in the range of US$270 billion.
