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A BRIEF HISTORY OF TOYOTA

“Instead of avoiding competition with Ford and Chevrolet, we will develop and mass-produce a car that incorporates the strong points of both, and that can rival foreign cars in performance ... and price.” - Kiichiro Toyoda.

The Toyoda Automatic Loom Works Limited was established in 1926 in Kariya, near Nagoya. Sakichi Toyoda, who founded the company, duly introduced a number of improvements in weaving machinery, and made a small fortune granting the patent rights to a firm in England. As a motoring enthusiast, Sakichi earmarked a substantial amount of this money to enable his son, Kiichiro, to set up a car building department.

Japan was a long way behind the automobile-producing countries of Europe and America. Indeed, it wasn’t until 1907 that the first petrol-engined Japanese car was produced. Even then, much of the chassis technology employed on the Yoshida Type 3 (better-known by its nickname, the ‘Takuri’) had been borrowed from French manufacturers, and two of the ten built were powered by twin-cylinder units imported from the States.

Kiichiro Toyoda - the founder of the Toyota Motor Company.

The 1936 Toyoda Model AA Sedan, Toyota’s first production car. A drophead version, designated the Model AB and powered by the same 3389cc six cylinder engine, was also available.

However, by the time of the First World War, the fledgling Japanese industry was starting to find its feet. Shintaro Yoshida, the man behind the Takuri, had introduced a series of vehicles under the auspices of the Tokyo Automobile Works, including his country’s first four cylinder model, which appeared in 1911.

It was in 1911 that Masujiro Hashimoto founded the Kaishinsha Motor Car Works - the origin of the Datsun marque; later, a merger led to the formation of the Nissan Motor Company. Meanwhile, in 1912, Ohta was established in Tokyo, and a few years after, the first Mitsubishi was built.

Despite this period of growth, there were still very few cars in Japan, even during the 1920s. Indeed, a survey conducted in 1923 showed that there were less than 13,000 vehicles on the road at the time, and almost all of these were American, initially brought into the country to get it mobile again following the massive Kanto earthquake of that year.

A few more manufacturers joined the ranks, such as Ishikawajima (the forerunner of Isuzu) and Otomo, but by the end of the decade, Ford, General Motors and Chrysler all had a strong foothold. Indeed, such was their dominance in the Japanese market that both Ford and GM established their own assembly plants, in Yokohama and Osaka respectively.

It was against this background that Kiichiro Toyoda joined the motor industry. Born in June 1894, Kiichiro had studied Mechanical Engineering at the Tokyo Imperial University, and also visited a number of American and European car manufacturers before commencing his career.

His first project, which he started in 1930, was the construction of a 4hp two cylinder engine. Based on a Smith power unit from America, this fairly modest beginning signified the birth of the Toyota automobile empire.

The BA and BB appeared in 1940, taking styling hints from Volvo. The BA was a four-light saloon. This is the BB drophead prototype.

Birth of an Empire

Toyoda’s first car, a 1932 prototype built in conjunction with the Okuma-Nippon Sharyo concern, and named the Atsuta after a famous local Shinto shrine, was not a great success. However, following advice and encouragement from his friends in the growing industry, he persevered and, towards the end of 1933, a proper automobile department was set up.

In the spring of 1935, the Model A-1 prototype was completed. It featured a Chrysler Airflow-style body mounted on a Chevrolet-based chassis, and was powered by a 65hp copy of the six cylinder 3.4 litre ohv Chevrolet engine. This proved far more satisfactory, and limited production of the Toyoda Model AA (a direct development of the A-1) began in April 1936.

The Toyota Motor Company Limited was formed in August 1937 with a capital equivalent to $3.5 million. All future vehicles would be given the Toyota name rather than Toyoda: firstly because it was easier to pronounce, and secondly, it had a “lucky” number of strokes when written in Japanese katakana (eight strokes instead of the ten for Toyoda).

The birth of Toyota happened to coincide with a new sense of nationalism. The Japanese Government, at that time run by the military, were alarmed at the amount of cash leaving the country, with the balance of trade stacked firmly in favour of the United States. A number of restrictions and tariffs were imposed on imported vehicles and, with the introduction of the 1936 Motorcar Manufacturing Enterprise Law, the foreign manufacturers were eventually driven out. Although only Toyota, Nissan and Isuzu complied with the 1936 act, the Government did everything within its power to encourage the domestic producers.

The recently-acquired Koromo factory site was expanded, late in 1938, and production escalated from around 100 cars per month in 1936, to around 2000 a month following the expansion programme. The town of Koromo was later renamed Toyota City.

Cars, trucks and buses were being produced and, in order to become self-sufficient, the company also formed the Toyoda Machine Tool Works, the Aichi Steel Works, and two firms dealing with body pressings. However, for many years, steel was still being imported from America.

Just as Toyota was getting into its stride, Japan entered the Second World War. As the Pacific War escalated, production was turned over exclusively to military requirements and, as a result, a number of promising prototypes, such as the Model B saloon, were destined never to reach the showroom.

Toyota after WWII

It wasn’t until 1947 that Toyota resumed car production. The first vehicle was a 4x4 model, which was the ancestor of the famous Land Cruiser line, although the SA, which appeared in the same year, was perhaps the most important.

The 27hp Toyopet SA was styled by Masao Morimoto, and was significant in a number of ways. Kiichiro Toyoda, because he was interested not only in utility, but in design as well, was quite unusual for a Japanese industrialist. Morimoto had joined Toyota as a stylist in 1940 but, owing to the war, this was his first design to reach the marketplace. Over the years that followed, he would pen the lines for a number of other monumental cars.

Apart from the advanced styling, the compact S series were the first Toyotas to feature small and efficient engines. They were designed to compete in a market sector below that of the big American machines, since few people in Japan could afford to run such cars in the immediate post-war years.

However, in line with the directives issued by SCAP (the Supreme Commander for the Allied Powers), output was limited, and the SA was never allowed to fulfil its undoubted potential. Nevertheless, employment within Toyota kept rising; Nippondenso was established to produce electrical items, while the Toyoda Spinning & Weaving Company manufactured cloth and thread for use in both the automotive and domestic fields.

With such expansion, combined with low production, cashflow soon became a serious problem. The workforce, which had stood at 8000 in 1949, was cut back to 6000. In response, the remaining workers went on an eight week strike - the only one in the company’s history. Subsequently, Kiichiro Toyoda resigned, with Taizo Ishida taking his place at the head of the business; Kiichiro died two years later, in 1952. However, Eiji Toyoda, in the role of Managing Director, maintained the family link, and would eventually be named Chairman.

The Toyopet Model SA of 1947. Designed by Masao Morimoto, it was powered by a four cylinder 995cc side-valve engine. It was in 1947 that Toyota’s cumulative production reached 100,000 units. At the end of October 1949, SCAP finally granted Japanese manufacturers permission to produce cars without restrictions, but had it not been for military orders received at the outbreak of the Korean War, Toyota could have been in serious financial difficulties.

The first Crown was introduced in January 1955, and was a direct development of this car, the Toyopet RH Super.

A New Beginning

Eiji Toyoda visited Ford in America, along with a member of his management team, Shoichi Saito, to study the latest ideas in car production. He stayed there for several weeks and, as a result, within a decade Toyota had totally transformed its working practices, increasing productivity and becoming one of the most efficient factories in Japan in the process.

It must be said this was not the only reason. Much of this metamorphosis can be attributed to the “suggestion system”, whereby the company invites workers to suggest ways of improving production. This system is still in use today. In 1993, for instance, more than 900,000 ideas were submitted, with almost all of them being adopted!

The Korean War of 1950-53 had also helped the Toyota Company, as it received a number of large military orders from the Allied forces. Mr Toyoda later said that “the orders were Toyota’s salvation.” At this time, of course, Japan was still under the Allied Occupation Authority following the Second World War, the Allies (largely Americans) not pulling out until 1952.

Toyota Motor Sales had been formed in 1950, thereby splitting the manufacturing and marketing organisations. TMS had the inspired idea of teaching more people to drive; this was a great success and, in the long term, sales increased beyond all expectations. In 1955, car production stood at 700 units a month, but by 1962, the company had completed its one millionth automobile, and by 1965, Toyota was building a staggering 25,000 cars per month, as well as a similar number of commercial vehicles.

In 1954, the company underwent a massive reorganisation in the way its products were designed. Clay modelling was introduced, along with the system of allocating different teams to the various projects. The First Generation Crown of 1955 vintage was the first to benefit and, from a styling point of view, proved to be a very important model.

Toyota’s Corona series made its debut in May 1957, and was to become one of Toyota’s most successful lines. This is the 1957 ST10 model, powered by a 995cc four cylinder engine.

Introduced in 1962, this was the first of the modern Toyota Crowns. It came with either the old 1.9 litre four cylinder engine, or a six cylinder two litre unit.

Morimoto was subsequently sent to an American art school to learn automotive design, as well as Western tastes and styles. A proper Design Section was established on his return and, by 1966, it was the biggest and by far the most modern styling centre in Japan.

Japan’s motor industry, however, which was largely reliant on European technology at this stage, was still not considered a threat by any of the established car-producing countries. When Renault complained to the French Government that Hino had not been paying royalties on 4CVs built under licence, the reply came back that it was “hardly fair to pick on this poor little country which has such a task to feed hundreds of thousands of inhabitants.”

Shotaro Kamiya was the motive force behind Toyota’s entry into the US market - the influential President took the decision in mid-1957 following a visit to the country. The Crown was the first Toyota sent to America, two of the 1.5 litre machines arriving in Los Angeles (accompanied by Miss Japan) in August 1957. Toyota Motor Sales Inc. was founded two months later. At this time though, Japanese cars and the requirements of American buyers were poles apart, and this initial attempt at establishing a market in the States was something of a failure. Donald Frey of Ford even went so far as to say the first Crown he saw was “a heap of junk.” Nonetheless, many lessons were learnt.

Japan’s first true Grand Tourer - the Toyota 2000GT. Powered by the six cylinder Crown engine, there was also a 200bhp competition model available.

Continued Growth

Taiichi Ohno (later Toyota’s Vice-President) helped to raise productivity through the introduction of new work practices, and was the man behind the “Just in Time” system, now employed throughout the motor industry.

During 1959, Toyota opened the Motomachi plant - the first Toyota factory dedicated solely to car manufacture. The Corona was already in production, having been introduced in May 1957, and was soon followed by the 1000 UP10, which was later developed into the Starlet. Interestingly, the Corona name was already in use in Japan - Nissan had a small coach called the Corona but, instead of stopping Toyota from using the appellation when the announcement was made, Nissan rang Toyota to thank them for advertising the little bus!

With sales picking up in the States, thanks largely to a bigger 1.9 litre engine being employed for the Crown, there was even talk of Toyota joining forces with Ford to produce the Publica economy car in the US. By 1963, the Japanese marque had begun its export drive and, having introduced an all-new Crown the previous year, were now in a position to supply America with the vehicles it needed. The company set its sights on Europe next.

Exports went up from less than 6500 units in 1960, to nearly 43,000 for 1964, the year in which Japan was admitted to the Organisation for Economic Co-Operation & Development - an international group for advanced industrial nations. By 1967, exports had topped the 150,000 vehicles per annum mark and, within two years of this, Toyota had become the second largest exporter to the States, beaten only by Volkswagen.

The 1.1 litre Corolla had been introduced in November 1966, and became Japan’s best-selling model almost overnight. The larger, and immensely-popular, Cressida followed a couple of years later. The range was now quite extensive, and included everything from two cylinder economy cars to V8 limousines.

The Third Generation Crown series, introduced in September 1967, later included this attractive, European-looking coupé known as the Hardtop.

Meanwhile, Toyota had briefly entered the sports car market with its tiny Sports 800 (built between 1964 and 1969), and the legendary 2000GT, created by Jiro Kawano and introduced in October 1965. The latter sold in very small numbers - in fact just 351 were built - but it did pave the way for the adoption of a more sporty and upmarket image.

During the late-1960s, Toyota acquired Hino and Daihatsu, bringing the former’s car producing days to an end. At a time when others were making deals with the Big Three in America, purely to establish themselves in the world’s largest market, Toyota not only stayed independent, but adopted an even more aggressive marketing and expansion policy, especially during the 1973 Arab Oil Crisis when its economy cars were in great demand.

In 1969, Toyota was the world’s fifth biggest car producer, way behind General Motors and Ford, but not far away from the Volkswagen and Chrysler figures. By 1972, thanks in no small part to the immense success of the Corolla both at home and abroad, Toyota had moved into third place.

A Fresh Image

The contemporary Corona (in Mark II form by September 1968) was already a proven winner, being voted by the American Road Test magazine as ‘Imported Car of the Year’ for 1969. The decision to market the Celica coupé, however, was a bold one for a conservative company like Toyota, but was made at a time when Japan’s economy was running at an all-time high. People were starting to spend more money on leisure activities and there was a notable swing in Japan towards following the ways of the West.

Based on the EX-I (a concept car shown at the 1969 Tokyo Show), the new Celica was above all “a car for the seventies” - perfectly in tune with the changing times, but perhaps more importantly, perfect for the American market.

Announced in September 1970, the Celica joined a new breed of cars, like the Mitsubishi Galant GTO, Mazda RX-2 and Datsun’s 240Z and Bluebird-U, as perfect examples of modern Japanese sports cars, combining good looks with driving pleasure, economy and reliability.

Writing for Motor magazine in England, Paul Frère, the ex-Ferrari F1 driver turned journalist, noted: “In my opinion, this is the best Toyota yet ... It handles well, has a very good gearbox and quite a torquey engine.”

Japanese advertising for the Corona 1600SL, dating from mid-1970.

Stylish advertising for the immensely popular Celica, linking the past, present and future. Later, the original coupé was joined by a Liftback version which further broadened the appeal of the model.

The first Celica arrived in the UK in mid-1971. A couple of years later, the home market received the Celica Liftback, although this series wasn’t exported until the 1976 Model Year. In the meantime, the First Generation Celica had gained some very favourable competition results, both in Japan and abroad. Win Percy was declared the winner of the 1600 Class of the British Saloon Car Championship (the forerunner of the BTCC) in 1975 and 1976, whilst in the World Rally Championship, Ove Andersson took second place in the 1976 Rally of Portugal, and Hannu Mikkola clinched second place in the 1977 RAC Rally.

Over one million First Generation cars had been sold by the time they were replaced in the summer of 1977. Once again, the Celica was available as a coupé or a Liftback model, and there were a large number of engine, transmission and trim options. Shortly after, the first Celica XX (or Celica Supra in export markets) made its debut - a Celica Liftback with a longer nose and a 2.6 litre straight six engine.

Although the Crown was no longer available in America, the Cressida (or Mark II as it was known in Japan) proved worthy of taking on the former’s mantle, and the new model, introduced in 1978, perfectly combined luxury with reliability. All Celicas were updated for the 1980 Model Year and, in August, the XX version gained a more powerful 2.8 litre engine. Shortly after, American Celicas had their engine size increased from 2.2 to 2.4 litres.

It was all part of Toyota’s plan to enhance the image of the brand abroad. Unfavourable exchange rates would soon make Japanese exports more expensive, and therefore harder to sell. In the early days of the Celica and the Datsun Z, the value of the Yen made American imports extremely good value for money, but times had changed - cars now sold on their merits and not just their sticker price. Nonetheless, in 1980, Japan produced seven million vehicles during the year, becoming the world’s number one car producer.

In July 1981, the Third Generation Celicas were announced, along with an attractive Second Generation Celica Supra, using the same formula as the previous model - a larger six cylinder power unit and an extended nose section. A number of interesting models came out of this series, especially those linked with Toyota’s attack on the WRC. The Chief Engineer, incidentally, was Akihiro Wada, who would later become the company’s Vice-President.

With regard to sales, the Corolla was undoubtedly the car of the 1970s. It was also a pretty useful rally car, as can be seen in this picture taken at the Arctic Rally in Finland. Almost seven million Corollas were sold during the decade.

The Second Generation Celicas. Again, a Liftback version was made available, and there was also a luxury GT with a straight six engine, known as the Celica Supra, for the USA. On the home market, the larger model was known as the Celica XX.

On the first day of July 1982, the Toyota manufacturing and sales organisations were brought together again under the presidency of Shoichiro Toyoda, Kiichiro’s son. He proved to be more receptive to fresh ideas than his predecessors, and the first completely new car to appear after this move was the mid-engined MR2. Displayed at the 1983 Tokyo Motor Show under the SV-3 name, the MR2 further enhanced Toyota’s new-found sporting image.

The FX-1 concept car was the star of the 1983 and ‘84 show scene. It displayed leading-edge technology in chassis design (double-wishbone suspension with electronically-controlled air springing which automatically adjusted to road conditions and speed), aerodynamics (the Cd was an astonishing 0.25), the powertrain, electronics and materials. The engine was a twin-cam, twin-turbo straight six which featured Toyota Acoustic Induction Control, Variable Valve Timing, and a high energy DNI ignition system which employed a crankshaft sensor and three small ignition coils, thereby negating the need for a distributor and HT leads. Linked to a four speed electronically-controlled automatic transmission, the 210bhp two litre engine could power the FX-1 to a top speed in excess of 155mph. A large number of these innovations would find their way into production.

Announced in August 1985, the new Celica gained front-wheel drive and a very modern aerodynamic body. It quickly gained a reputation for fine handling and balance, and moved Toyota into the upper echelons of sports car manufacturers. The new Celica also brought the company an immense amount of publicity through its success in the field of motorsport, particularly in the World Rally Championship.

The old Celica Supra was listed until mid-1986, when it was replaced by a completely new model, not linked to the Celica in any way. The all-new three litre Supra was a refined GT with excellent performance, bettered only by the turbocharged model that followed a couple of years later. Toyota was now the only manufacturer to offer three sports cars alongside a full range of saloons.

With a sports car range that had the respect of motoring journalists all over the world, the time had come for Toyota to broaden its horizons and make an impact on the lucrative prestige market. In Japan, the high powered Soarer coupé (sold since 1981) and luxurious Crown and Century sedans were already held in high esteem, but plans were being set in motion to develop a model that would send shockwaves throughout the car industry ...

For 1980, the new Crown featured a 2.8 litre straight six engine. This 5M-GEU power unit was later used in the Supra.

The Third Generation Celica range saw sharper lines and another Supra (seen here in British guise). This series of Celicas established Toyota as a serious competitor in the mass-produced sports and GT market.

The FX-1 concept car, only two of which were built. Interestingly, the Chief Engineer was Sumio Ono, who was also in charge of the Century limousine.

By the end of the 1980s, Toyota had an enviable sports car line-up, including the Supra, Celica and MR2. The marque had long since ceased to be dependent on selling economy cars, and the sporting machinery would make a definite move upmarket over the coming years.