Eiji Toyoda

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Lore & Background

Eiji Toyoda studied mechanical engineering at Tokyo Imperial University from 1933 to 1936. During this time his cousin Kiichiro established an automobile plant at the Toyoda Automatic Loom Works in Nagoya. Toyoda joined his cousin after graduating, and in 1938 Kiichiro asked Eiji to oversee construction of a newer factory about 32 km east of Nagoya in the town of Koromo, later renamed Toyota City. Known as the Honsha plant, it is still considered the 'mother factory' for Toyota Motor production facilities worldwide. Toyoda visited the Ford River Rouge Complex in Dearborn, Michigan, during the early 1950s. He was awed by the scale but dismissive of its inefficiencies. At that time, Toyota had been making cars for 13 years and produced just over 2,500 automobiles, while Ford manufactured 8,000 vehicles a day. Toyoda decided to adopt American mass production methods but with a qualitative twist. Collaborating with Taiichi Ohno, a veteran loom machinist, Toyoda helped develop core concepts of the Toyota Production System, such as the Kanban system of labeling parts—an early precursor to bar codes. They also fine-tuned Kaizen, a process of incremental but constant improvements to cut production and labor costs while boosting quality. As managing director, Toyoda failed in his first attempt to crack the U.S. market with the underpowered Toyota Crown sedan in the 1950s, but succeeded with the Toyota Corolla compact in 1968, a year after taking over as president. During the Corolla's development, Toyoda, as executive vice-president, had to overcome objections from then-president Fukio Nakagawa to install a newly developed 1.0-liter engine, air conditioning, and automatic transmissions. Appointed the fifth president of Toyota Motor, Toyoda became the company's longest-serving chief executive. In 1981, he stepped down as president and assumed the title of chairman. He was succeeded as president by Shoichiro Toyoda. In 1983, as chairman, Eiji decided to compete in the luxury car market, which culminated in the 1989 introduction of Lexus. Toyoda stepped down as chairman in 1994 at age 81.

Reader's Guide

Eiji Toyoda's career shows how an engineer with a production mindset can reshape an entire company. After studying at Tokyo Imperial University, he joined his cousin Kiichiro's automobile venture and oversaw construction of the Honsha plant, which became the template for Toyota factories worldwide. His 1950s visit to Ford's River Rouge Complex was a turning point: rather than copy American methods wholesale, he adapted them with a focus on quality and efficiency. Working with Taiichi Ohno, he co-developed the Kanban system and refined Kaizen, creating the Toyota Production System. Toyoda's strategic decisions were equally important. After the failure of the Crown in the U.S., he pushed for the Corolla, overcoming internal opposition to include a 1.0-liter engine, air conditioning, and automatic transmissions. The Corolla became a global success. As chairman, he made the bold call to enter the luxury market, leading to the Lexus in 1989. Toyoda served as Toyota's longest-running chief executive, stepping down as president in 1981 and as chairman in 1994. He died of heart failure on 17 September 2013, five days after his 100th birthday.

Did You Know?

• Eiji Toyoda studied mechanical engineering at Tokyo Imperial University from 1933 to 1936.
• He visited the Ford River Rouge Complex in the early 1950s, where Ford produced 8,000 vehicles a day while Toyota had made just over 2,500 cars in 13 years.
• Toyoda collaborated with Taiichi Ohno to develop the Kanban system, an early precursor to bar codes.
• He overcame objections from then-president Fukio Nakagawa to install a 1.0-liter engine, air conditioning, and automatic transmissions in the Corolla.
• Toyoda died of heart failure on 17 September 2013, five days after his 100th birthday.