Toyota: a perfect story of ideas, part II

By the time Sakichi Toyoda was in his 60s, his loom company and tireless drive to innovate had established him as one of the most important figures in business.

He had not only made vast improvements in the looms themselves, but had put in place a collaborative, open environment for ideas that would later become one of the hallmarks of success for his automotive company, Toyota. Sakichi believed that the best ideas came from people working directly within his manufacturing environment, and encouraged everyone to have ideas.

More new ideas

Japan had a major earthquake in the early 20s that damaged many of the country's railways, making it difficult for its citizens to travel. Given this tragedy, and exposure to the road systems and affordable cars they had seen in the US, Sakichi and his son Kiichiro got a new idea. A Japanese auto manufacturer.


Time out! Yes, there was a need for cars, but all the Toyodas' expertise was in the textile industry! Yes, but Japan at this time had no expertise in high level machine design and manufacturing. None!

Of course the Toyodas didn't let yes, but murder their ideas. They sold their loom business (for enough money that they could have sat back and been really fat and really happy for the rest of their lives and beyond, by the way) and used the proceeds to start exploring a Japanese automobile.

They worked with a team who had no previous automobile design experience and produced their first prototype in 1935. They established Toyota Motor Company in 1937 (adapted from their last name, Toyoda) and the rest is history. Toyota hasn't lost money since 1950. 1950!


Ideas win.


Thanks for telling me the story, Dave Magee. Read the book (How Toyota Became #1). You'll enjoy it.