Eiji Toyoda

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Eiji Toyoda (豊田英二 Toyoda Eiji) born 12 September 1913 near Nagoya in Japan, is a prominent Japanese industrialist, who was largely responsible for bringing Toyota Motor Corporation to profitability and worldwide prominence during his tenure as president and later chairman. Born into a family of textile manufacturers, Eiji Toyoda is the son of Heihachi Toyoda, the brother of Toyoda Loom Works founder Sakichi Toyoda.[1]

He studied engineering at Tokyo Imperial University from 1933 to 1936.[2] During this time Toyoda's cousin Kiichiro established an automobile plant at the Toyoda Automatic Loom Works in the city of Nagoya in central Japan.[2] Toyoda joined his cousin in the plant at the conclusion of his degree and throughout their lives they shared a deep friendship. In 1938, Kiichiro Toyoda asked Eiji Toyoda to oversee construction of a newer factory about 32 km east of Nagoya on the site of a red pine forest in the town of Koromo, later re-named Toyota City.[1] Known as the Honsha ("headquarters") plant, to this day it is considered the "mother factory" for Toyota Motor production facilities worldwide.[3]

Toyoda visited Ford's River Rouge Plant at Dearborn, Michigan, during the early 1950s. He was awed by the scale of the facility but dismissive of what he saw as its inefficiencies.[4] Toyota Motor had been in the business of manufacturing cars for 13 years at this stage, and had produced just over 2,500 automobiles. The Ford plant in contrast manufactured 8,000 vehicles a day.[2] Due to this experience, Toyoda decided to adopt US automobile mass production methods but with a qualitative twist.

Toyoda collaborated with Taiichi Ohno, a veteran loom machinist, to develop core concepts of what later became known as the 'Toyota Way', such as the Kanban system of labeling parts used on assembly lines, which was an early precursor to bar codes.[4] They also fine-tuned the concept of "Kaizen", a process of incremental but constant improvements designed to cut production and labor costs while boosting overall quality.[4]

As a managing director of Toyota Motor, Toyoda failed in his first attempt to crack the U.S. market with the underpowered Toyota Crown sedan in the 1950s, but he succeeded with the Toyota Corolla compact in 1968, a year after taking over as president of the company.[4] During the car's development phase, Toyoda, as executive vice-president, had to overcome the objections of then-president Fukio Nakagawa to install a newly developed 1.0-liter engine, air conditioning and automatic transmissions in the Corolla.[3]

Appointed the fifth president of Toyota Motor, Toyoda went on to become the company's longest serving chief executive thus far.[3] In 1981, he stepped down as president and assumed the title of chairman. He was succeeded as president by Shoichiro Toyoda.[3] In 1983, as chairman, Eiji Toyoda decided to compete in the luxury car market, which culminated in the 1989 introduction of Lexus.[3]

Toyoda stepped down as chairman of Toyota in 1994 at the age of 81.[4]

Footnotes

  1. 1.0 1.1 Kodansha (1987). "Toyota-fifty years in motion", Eiji Toyoda, Kodansha International, Tokyo. Cite error: Invalid <ref> tag; name "" defined multiple times with different content
  2. 2.0 2.1 2.2 Kodansha International
  3. 3.0 3.1 3.2 3.3 3.4 Lexus: The Relentless Pursuit
  4. 4.0 4.1 4.2 4.3 4.4 Dawson, Chester 2004-05-24; "Kiichiro And Eiji Toyoda: Blazing The Toyota Way", BusinessWeek. Retrieved on 2008-07-18. Cite error: Invalid <ref> tag; name "Dawson" defined multiple times with different content

See also