In 2008, Toyota surpassed General Motors and became the number one company in global automobile sales. Toyota also offers 70 different models of vehicles.
Just as Ford revolutionized production with Fordism, Toyota transformed the manufacturing and supply process with The Toyota Way.
Let’s learn about Toyota motor corporation
- How company started
- Growth of Toyota
- The Toyota way
- Toyota in Japan
- Toyota Expansion
- Merger and acquisitions
- Different Brand’s and model’s
- Conclusion
How company was started?
Toyota Motor Corporation was founded by Kiichiro Toyoda on August 28, 1937. However, it is important to clarify that Toyota Motor Corporation is one of the subsidiaries of the Toyota Group. The Toyota Group is one of the largest conglomerates in the world, consisting of 13 core companies across different sectors.”
The Toyota Group was founded by Sakichi Toyoda on November 18, 1926. However, when the company decided to enter the automobile industry, the founder’s son, Kiichiro Toyoda, led this initiative and established Toyoda Automatic Loom Works on September 1, 1933. The company officially announced on January 29, 1934, that they were moving forward with this idea.
Kiichiro Toyoda initially decided to focus on truck production due to a lack of experience in the automobile industry. On September 15, 1934, they created the Toyota Type A engine. The first truck model, the G1, was released on November 21, 1935. However, the company manufactured only 379 units of this model.
The company was also working on a passenger car and released its first car in April 1936. Until this date, the company operated under its old name, Toyoda Automatic Loom Works. However, when the company decided to go public, it needed a brand name and logo. As a result, the name changed from Toyoda to Toyota. Rizaburo Toyoda was appointed as the company’s first president.
After World War II, when America and its allies won the war, the U.S. restricted Japan from manufacturing passenger cars. However, Toyota repaired American cars and trucks. During the war, Toyota’s plant was destroyed by bombings .
Growth of Toyota
After World War II, when Japan was defeated by the Allied forces, America banned the production of passenger cars in Japan. During the war, Toyota’s plant was destroyed due to heavy bombing, making this a very tough time for the company. However, America allowed Japan only to repair vehicles and manufacture trucks.
Time was very difficult for toyota . but when The U.S army placed and order for 1000 trucks, toyota became stable and made back in business . also in 1949 U.S goverment allow manufacturing of passenger cars in Japan.
So this is the all about Toyota motor corporation and his early year’s .
The Toyota way
The Company was doing good in Japan . but needed to improvement for being best in the world, that’s why the cousin brother of kiichiro toyoda Eiji Toyoda tripped US . this trip was very beneficial for the company because Eiji Toyoda visited General motors and Ford manufacturing plant’s and learn from them . and invented new way of production, known as ” The Toyota way ” .
The Toyota way
The Toyota way ia a management philosophy and corporate culture who helped Toyota to became successful . it contains 14 principals for company employees. in which included continuous improvement ( kaizen ) , respect for people, Lean manufacturing, long term thinking and many more .
The more famous principal is a Right on time . means the company start car production after they recieved order for it . this method save labour cost, reduce wastage and also offer many more advantages.
Toyota in Japan
Toyota was the main automobile company of Japan . but during the time of war and after U.S invasion cause the slow down the growth of company . but when U.S gave permission of passenger car manufacturing Toyota came back in the track .
In 1952 the introduced it’s first full fledged car ” The Toyota crown” . and got positive reviews from customers . car went on sale in August 1955.
Everything was going well, but the main turning point for the company came during the 1960s. This was a time when the Japanese economy was growing. The government spent money on infrastructure, and people were getting paid well. The middle class had more disposable income. The company saw this as an opportunity and launched the Toyota Corolla, an affordable, reliable, and fuel-efficient car. (The world’s all-time best-selling automobile.)
Toyota Expansion
Toyota was performing well in the Japanese automobile market. However, since Japan is a small country, the company needed to expand into other markets.
Toyota made an agreement with Abdul Latif Jameel (both a person and a company) to enter the Saudi Arabian automobile market. They entered Saudi Arabia with the Land Cruiser in 1955 and expanded to Yemen in 1956.
In 1958, Toyota entered the American automobile market with the Toyopet Crown. However, this move failed because the car was underpowered and overpriced. American consumers preferred high-speed, affordable vehicles, while the Toyopet Crown was designed for Japanese roads. As a result, Toyota struggled in the U.S. market initially.
Toyota re-entered in US market in 1965 with Toyota corona . this model was special design for american market that’s why they got positive response from customers and sold more than 20,000 units in 1966 .
Energy crises 1970s
During the energy crisis, fuel prices rose significantly, leading customers to seek fuel-efficient cars. This became a turning point for Toyota Motor Corporation, as they conducted extensive research and developed fuel-efficient vehicles. As a result, the demand for Toyota cars increased in the market.
Merger and acquisition
When a company wants to enter a foreign markets, either they directly enter or form partnership with existing company in that country . just like this Toyota entered in foreign market with partnership and acquisition or merger.
Acquisition and merger made by Toyota
Soichiro Toyoda started to merge Toyota’s sales and production organisation and combined companies became the Toyota motor corporation.
Toyota has formed numerous partnerships with various automobile companies over the years. This began in 1958 when the company first entered an agreement with Abdul Latif Jameel.
To establish itself in Southeast Asia, Toyota partnered with domestic manufacturers. In the 1970s, it collaborated with Delta Motor Corporation in the Philippines. In 1971, Toyota formed a partnership with Astra International, leading to the creation of Toyota Astra Motor.
After the fuel crisis, Toyota became popular in the U.S. market. However, this also led to growing anti-Japanese sentiment. To navigate these challenges, Toyota sought a partnership with a local manufacturer. It initially approached Ford with an offer for a joint venture.
Eventually, in 1984, Toyota partnered with General Motors to establish a formal joint venture plant called NUMMI (New United Motor Manufacturing Inc.) in Fremont, California. Both companies benefited from this collaboration—Toyota gained its first manufacturing base in the U.S., while General Motors received high-quality small cars and insights into the Toyota Way of production.
The company has also expanded through acquisitions and share purchases. For example, Toyota acquired Hino Motors in 2000 and increased its stake in Daihatsu to 51.2% in 1998, along with many other investments.
Different Brand’s and model’s
Toyota offers more than 70 different vehicle models, covering a wide range of categories, including trucks, sports cars, SUVs, luxury cars, and more.
From the flagship Toyota Crown to the premium Lexus lineup, the company provides vehicles for various market segments. It also produces mid-range cars such as sedans, hardtop coupes, and models like the Supra, Mark III, Cresta, and Chaser. In the sports car category, Toyota has introduced iconic models like the Celica, Corolla Levin, and Sprinter Trueno.
To compete with luxury brands like Mercedes-Benz, BMW, and Jaguar, Toyota launched Lexus as a separate division, focusing on high-end vehicles with premium features.
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Conclusion
Toyota Motor Corporation is one of the most successful automobile companies in the world, selling more than a million cars per year.
However, we are not discussing Toyota because of its impressive statistics; we are discussing it because of the valuable lessons we can learn from its journey. Toyota’s philosophy, known as The Toyota Way, its revolutionary Just-in-Time production system that transformed manufacturing, and many other strategic steps taken by the company offer great insights into business success.