Toyota - a Brief History

10860 Words Dec 29th, 2010 44 Pages
Toyota and Why It Is So Successful

The History of Toyota
For organizational convenience I will discuss Toyota history as follows:
ÔÇó The start
ÔÇó The 1940s
ÔÇó The 1950s
ÔÇó Etc.
The start. The Toyota Motor Corp. (TMC) had its beginning in 1933 when it was established as a division within the Toyoda Automatic Loom Works, Ltd.
The founder of Toyota was Kiichiro Toyoda (1894ÔÇô1952), the son of Sakichi Toyoda (1867ÔÇô1930). The values that have underpinned Toyota success startedwith Sakichi who was the son of a carpenter. Sakichi went from carpentry, which he had learned from his father, to making looms for weaving. He then came up with many inventionsthat resulted in remarkable improvements in looms. For example, by 1924 he had developed
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Because of severe shortages in Japan, military trucks were kept as simple as possible. For example, the trucks had only one headlight on the center of the hood. Fortunately for Toyota, the war ended shortly before a scheduled allied bombing run on the Toyota factories in Aichi.
Following the war, production returned to the needs of the consumer with the introduction of the SB small truck and the SA compact passenger car in 1947.
That same year Toyota celebrated the production of its 100,000th vehicle.

The 1950s. The 1950s were again a time of remarkable change for Toyota.
Two people now took on prominent roles in ToyotaÔÇÖs development: Eiji Toyoda and Taiichi Ohno. In a way one can say their contributions were ÔÇ£just-in-time.ÔÇØ
Towards the end of the 1940s Toyota was experiencing a severe cash flow problem. In trying to stave off bankruptcy, it called for strict cost cutting and a request for ÔÇ£voluntaryÔÇØ retirements. This led to a labor dispute that was only quelled when the president, Kiichiro, accepted responsibility and resigned. This personal sacrifice on the part of Kiichiro reflects one of the foundational elements of ToyotaÔÇÖs philosophy. The philosophy of Toyota to this day is to think beyond individual concerns to the long-term good of the company, as well as to take responsibility for problems. Kiichiro Toyoda was leading by example
At this same time when…

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