Akio Toyoda preserves the family dynasty's heritage amidst planning for Toyota's upcoming strategies.
In 1924, Sakichi Toyoda, the founder of Toyota, unveiled a groundbreaking invention - the Toyota Type G Automatic Loom. This loom, revolutionary in its time, set the stage for one of the world's most successful corporate dynasties.
The Type G Automatic Loom was a highly advanced automated loom that could operate with minimal human intervention. Its success helped establish Toyoda Automatic Loom Works as a leading company in textile machinery. Crucially, in 1929, the patent rights for the automatic loom were sold to the British company Platt Brothers, generating the capital necessary to fund automobile development.
The impact of the Type G loom on Toyota Motor Corporation’s transition to automobiles was profound. The proceeds from the loom’s patent sale provided the financial foundation for creating an automobile division within Toyoda Automatic Loom Works in 1933, led by Kiichiro Toyoda, Sakichi's son. This division marked the company’s formal entry into automobile manufacturing, beginning with the development of the prototype Type A engine in 1934 and the first production vehicle (the G1 truck) in 1935.
The manufacturing and automation innovations from the textile loom business laid the groundwork for Toyota’s pioneering production techniques in the automotive industry. The principle of jidoka, introduced in the loom, influenced the Toyota Production System’s emphasis on quality control and efficiency, which became core elements in Toyota’s global automotive success.
In 1925, Toyota started mass-producing the Type G Automatic Loom, providing the capital for the company to transition from loom manufacturing to car production. This year also marked the founding of Automotive News, a leading American auto industry newspaper based in Detroit, which published its first issue in the same year.
The legacy of the Toyota Type G Automatic Loom continues to be celebrated. A restored Type G Automatic Loom is displayed in the lobby of Toyota's Tokyo executive suite, next to a replica of the Model AA. The interview with Chairman Akio Toyoda, a descendant of the Toyoda family, traced the original spark for Toyota's success back to his great-grandfather Sakichi Toyoda. The interview was conducted to mark Automotive News' centennial and profiles the Toyoda family as a family whose contributions shaped the global auto industry.
The Type G Automatic Loom was not just a technological milestone in textile machinery but also the financial and philosophical catalyst that enabled Toyota to evolve from a loom manufacturer into one of the world’s leading automobile companies. The spirit of continuous innovation and manufacturing excellence that began with the Type G Automatic Loom continues to drive Toyota today.
The financial proceeds from the sale of the Type G Automatic Loom's patent rights played a significant role in creating an automobile division within Toyota, setting the stage for its transition from textile machinery to automobile manufacturing. This move culminated in the development of the Toyota's first production vehicle in 1935.
The success of the Type G Automatic Loom in the finance and textile industries contributed to the establishment of Toyota as a prominent player in both the automotive business and the wider industry. The principle of jidoka, originating from the loom, influenced Toyota's emphasize on quality control, efficiency, and innovation, which are key to its global automotive success.
