Toyota - A brief history from Toyopet to the current bestseller Wigo

Toyota is a household name in many countries in the world including the Philippines. The automobile company has become a case study for management professionals due to the business strategies employed over many decades. Toyota has sold millions of cars over the years and the streets of this country, with the zooming Wigo or Camry, stand witness to its achievement. However, the company had evolved facing several odds over the course of 75 years.

The Beginning

Toyota Motor Corporation was founded by Kiichiro Toyoda who was the son of Sakichi Toyoda. Kiichiro entered the automotive business, different from the textile business of his father. He observed during the Great Kanto Earthquake that automobiles saved lives, as railway networks were destroyed due to the impact of the earthquake. He also observed that trucks, as well as automobiles, were imported from the US, as they were comparatively cheaper and arrived in a shorter time span.

Soon the American companies had established manufacturing units in Japan and the future of domestic automotive industries looked bleak. Kiichiro Toyoda believed that independent development of new technologies was the future, and research laboratory of the Automotive Department of Toyoda Automatic Loom Works became the Research Division of Toyota Motor Co. Ltd, in 1937. Despite shortages due to WW2, the company continued the rigorous research process.

Post War Consolidation & Development

An air raid hit the Toyota plant in Koromo and quarter of it was destroyed a day before the war ended. The very next day Toyota was tasked with making trucks to help rebuild the nation. It was also anticipated that car manufacturing would be prohibited. So, Kiichiro Toyoda began planning about alternate business ventures to feed whatever employees were left after the war. After a number of sanctions, Toyota began repairing US army vehicles refereeing it as PD operations. The new set of rules, as well as sanctions, kept coming, and eventually, due to trade disputes, Kiichiro Toyoda had to resign.

Shotaro Kamiya was the new president of the Toyota Motors Co. Ltd. He went to the US to enter into an agreement with Ford, but the outbreak of the Korean War prevented the American engineers from coming to Japan. However, due to the Korean War, Toyota received orders from the US army for manufacturing trucks and the business performance of the company improved. Post the end of Korean War, Toyota began expanding the production facilities working towards 10,000 vehicles a month.

Modernisation

In March 1960, the Toyopet Corona Model PT20 was launched. Toyota soon began coming out with new cars meant for the general public, and it went on the win the Deming Prize for its quality control process. Toyota remained committed to improving the quality of its vehicles by introducing new methods. With increasing market demands, newer problems in production and usage surfaced. However, the company was quick in acting on the issues and doing the best they could do to solve the problem.

After import duty was levied on vehicles in the US, Toyota decided to join hands with Ford to start a local manufacturing unit in the US. However, the deal did not go through, and Toyota entered in a joint venture with General Motors. Soon, the company undertook massive international expansion. The Toyota management style also became renowned across the globe.

The company began quickly identifying new opportunities in the growing Japanese economy. By the end of 2007, Toyota had over 53 overseas production plants in over 27 countries. Today, Toyota continues to remain one of the leading car manufacturers in the world. Its models such as Fortuner, Hilux, Wigo, Innova, etc. are highly loved in the Philippines.