Toyota History

Toyota Motor Corporation began as a division of Toyoda Automatic Loom Works in 1933. Founded by Kiichiro Toyoda, the Toyota division produced vehicles under the supervision of Toyoda's son. Kiichiro had been researching gas engines and automobile manufacturing for a few years before launching the Toyota line. The Japanese government was in need of domestic vehicle production to bring in money to overcome the financial difficulties of the war going on with China.

The Type A engine was introduced in 1934 and the Model A1 was the first passenger car to use it when it was rolled out in 1935. The G1 truck also came out that year with the Type A engine. In 1936, the Model AA car was produced and some of the parts were interchangeable with their American counterparts as they looked remarkably like certain Dodge and Chevy models.

In 1937, the Toyota Motor Co. became a separate company. They changed the spelling of the family name Toyoda to ensure the company's happiness. Toyota is also luckier than Toyoda because it only takes eight strokes to write Toyota, and eight is traditionally considered a lucky number. During the Second World War, Toyota worked for the war effort, building war trucks for the Japanese Imperial Army. The trucks were designed with only had one central headlight on the hood in an effort to limit the amount of supplies used.

When the war ended, Japan was suffering financially and the troubles extended to Toyota. The automaker obtained loans from a group of banks to avoid bankruptcy in 1949. The banks demanded some changes from the company in the form of an outside sales agency and a downsizing of the workforce. Upon the announcement of mandated layoffs and pay decreases, the union initiated a strike. In order for the workers to accept the cuts, they wanted the president of Toyota, Kiichiro Toyoda, to resign.

Thanks to the Korean War of the 50s, an order in excess of 5000 vehicles was placed by the United States military and it helped the company to regain its financial composure. The new president of Toyota, Taizo Ishida is recognized as helping the company through focused leadership by investing in needed equipment. By the 60s, Toyota was expanding into Thailand with a research and development facility. Port Melbourne, Australia became the first Toyota manufacturing facility outside of Japan in 1963. As the decade ended, Toyota became globally recognized for providing performance and comfort with without sacrificing gas mileage.

Demand in 2008 for fuel-efficient vehicles such as the Prius, Yaris, and Corolla exceed supply to the point that Toyota had to suspend manufacturing of its truck line, the Tundra. Production at more facilities was turned to the in-demand vehicles. Difficulties from the financial crisis that began in 2007 were tough on Toyota as they had a record loss of 4.2 billion dollars in the spring of 2009. By the end of 2009, things remained tough as recalls began on millions of cars and trucks and halted production and sales. In 2010, the United States government fined Toyota 16.375 million dollars, which they paid without admitting fault.