The Toyoda Family Business

By: John O’Dwyer

Sakichi Toyoda

• Sakichi was the first to invent the “Japanese-style”power loom in 1897

• Founded Toyoda Automatic Loomworks in 1926

• Sakichi later on sold the patents of his loomworks for$250,000, and used the money to help his son KiichiroToyoda on his quest to start his own auto industry

Kiichiro Toyoda

• Kiichiro Toyoda founded the Toyota Motor Company in 1937

• He changed the name from “Toyoda” to “Toyota”. Although there is no official reason to whythe name was changed, one of the more known stories was that “Toyoda” has tencalligraphic strokes, while “Toyota” has eight. The number eight was considered an“auspicious” number

• Died before the company released their first car in the U.S.

Eiji Toyoda

• After his cousin Kiichiro died in the early 50’s, Eiji helped to get the ToyotaMotor Company running the production of vehicles in the U.S.

• The first car, the Toyopet Crown, was released in the US in 1957. However,it did not sell for various reasons. One was that it was $500 more than themore popular Volkswagen Beetle. Another was that it was not fast enoughfor American highways

The Toyopet Crown From 1957

Later Success by Toyota

• In 1965, Eiji Toyoda released the Toyota Corona. Thesuccess of the Corona was seen as a stepping stone thatevolved in to many different models of Toyota such as theTercel, Supra, and the Land Cruiser (today known as FJCruiser)

Another successful release by Toyota was the Corolla in 1968.The Corolla was popular with “baby boomers” because it wasAn inexpensive and reliable car.

Introduction of the Lexus

• In 1983, Eiji Toyoda decided that thetime was right for Toyota to produce aluxury car, that car is Lexus

• In the August of 1989, Lexus sold itsfirst car, the LS 400, a luxury sedan thatsported a V8 engine, along with manyluxuries. (LS 400 pictured inbackground from 1989)

The Success of Lexus

• In 1991, Lexus had a successful year insales, selling 71,206 luxury cars. Thatsame year, Lexus outsold the otherluxury cars, such as Mercedes-Benz,and BMW

• Lexus has received high rankings inproduct quality, ranking first severaltimes in J.D. Power and Associates

Works Cited• 1) “Chairman Eiji Toyoda had a dream; today, it’s known as

Lexus.” Automotive News n5656 (April 29, 1996 n5656):S76(1). Business and Company ASAP. Gale. Ithaca High School Library. 22 Sept. 2009http://Find.galegroup.com/gps/start.do?prodld=IPS.

• 2) Dawson, Chester. “Blazing the Toyota Way; The World’sCarmakers Follow the Pattern Set by Kiichiro and Eiji Toyoda.”Business Week 3884 (May 24,2004) :22 Business andCompany ASAP . Gale. Ithaca High School Library. 22 Sept.2009 <http://find.galegroup.com/gps//start.do?prodId =IPS>.

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