Eiji Toyoda

1.1. Birth and Family Background

Eiji Toyoda was born on September 12, 1913, in Kanjō-mura, Nishikasugai District, Aichi Prefecture, which is now part of Horibata-cho, Nishi Ward, Nagoya City, Japan. He was the second son of Heikichi Toyoda. His father, Heikichi, had independently established a loom factory during the late Meiji period, separating from his elder brother, Sakichi Toyoda, who was the founder of Toyoda Loom Works. The descendants of Sakichi Toyoda have historically held dominant positions within the upper management of Toyota Motors, which was officially incorporated in 1937.

1.2. Education

Toyoda pursued his academic studies at Aichi Prefectural Asahigaoka High School and Eighth Higher School (now Nagoya University) before enrolling in Tokyo Imperial University. He specialized in mechanical engineering at the Faculty of Engineering, studying from 1933 to 1936. After graduating in 1936, he joined Toyoda Automatic Loom Works and was assigned to its automobile department. During this period, he resided in the Tokyo home of his cousin, Kiichiro Toyoda, and worked at the Toyoda Automatic Loom Works Shibaura Research Institute. He also occasionally acted as a guardian for Kiichiro's son, Shoichiro Toyoda, attending his middle school entrance ceremony.

2.1. Joining Toyota and Early Career

Upon joining Toyoda Automatic Loom Works, Eiji Toyoda entered the burgeoning automobile business. His cousin, Kiichiro Toyoda, had already established an automobile plant in Nagoya, and the two shared a deep and enduring friendship throughout their lives. In 1938, Kiichiro entrusted Eiji with the crucial task of overseeing the construction of a new, larger factory. This facility was located approximately 20 mile ^{(32 km)} east of Nagoya, on the site of a red pine forest in the town of Koromo, which was later renamed Toyota City. Known as the Honsha ("headquarters") plant, this facility remains the "mother factory" for Toyota Motor production facilities worldwide.

During the Second Sino-Japanese War, Toyota's production capacity, including the Honsha plant, was directed towards manufacturing military trucks for the war effort, leading to the suspension of aircraft development. In the aftermath of Japan's surrender in World War II, the GHQ's policies of zaibatsu dissolution impacted Toyota. Despite this, Toyota played a vital role in Japan's post-war reconstruction through its automotive manufacturing. The company faced near bankruptcy immediately after the war, surviving through extensive restructuring efforts. Eiji Toyoda was appointed a director in 1945. In the chaotic post-war period, Kiichiro Toyoda even instructed Eiji to engage in the ceramics business, leading him to commute to Tajimi City in Gifu Prefecture. He subsequently served as a managing director and senior managing director.

2.2. Development of the Toyota Production System (TPS)

In the early 1950s, Eiji Toyoda embarked on a pivotal visit to the Ford River Rouge Complex in Dearborn, Michigan, United States. He was profoundly impressed by the sheer scale of the facility, yet simultaneously critical of what he perceived as its inherent inefficiencies. At that time, Toyota Motor had been manufacturing cars for 13 years, producing just over 2,500 automobiles in total, a stark contrast to Ford's output of 8,000 vehicles per day. This experience led Toyoda to a crucial decision: to adopt American mass production methods but with a distinct qualitative emphasis.

To achieve this, Toyoda collaborated closely with Taiichi Ohno, a veteran loom machinist. Together, they developed the core concepts of what would later become known globally as the Toyota Production System (TPS). Key innovations included the Kanban system, which involved labeling parts used on assembly lines-an early precursor to modern barcodes. They also meticulously refined the concept of Kaizen, a philosophy emphasizing continuous, incremental improvements designed to reduce production and labor costs while simultaneously enhancing overall quality.

2.3. Presidency and Chairmanship

Eiji Toyoda's leadership roles at Toyota Motor Corporation were marked by strategic decisions that propelled the company to global prominence. His initial attempt to penetrate the U.S. market in the 1950s with the underpowered Toyota Crown sedan was unsuccessful. However, a significant breakthrough came in 1968 with the successful launch of the Toyota Corolla compact car. During the Corolla's development phase, as executive vice-president, Toyoda successfully advocated for the inclusion of a newly developed 1.0-liter engine, air conditioning, and automatic transmissions, overcoming objections from then-president Fukio Nakagawa.

In October 1967, following the sudden death of president Fukio Nakagawa, Eiji Toyoda was appointed the fifth president of Toyota Motor. He held this position for 14 years and 9 months, until June 1982, making him the company's longest-serving chief executive. During this period, he also served as the chairman of the Japan Automobile Research Institute from 1973. In 1981, he transitioned from president to chairman, with Shoichiro Toyoda, Kiichiro's eldest son, succeeding him as president.

As chairman, Eiji Toyoda made another landmark decision in 1983: to enter the luxury car market. This strategic move culminated in the highly successful introduction of the Lexus brand in 1989. Toyoda stepped down as chairman of Toyota in 1994 at the age of 81. He then became honorary chairman, and in 1999, he relinquished that title to Shoichiro Toyoda, assuming the role of advisor (supreme advisor), a position he held until his death.

2.4. Key Achievements and Strategies

Eiji Toyoda's leadership was characterized by several pivotal achievements and strategic initiatives that fundamentally shaped Toyota's trajectory. He was instrumental in transforming Toyota into a highly profitable and globally prominent company, earning him the moniker "Restorer of Toyota" alongside Taizo Ishida. His key achievements include:

• Global Market Penetration:** While his initial attempt with the Toyota Crown in the 1950s faced challenges, his persistence led to the resounding success of the Toyota Corolla in 1968, which became a global bestseller and solidified Toyota's presence in international markets.
• Development of the Toyota Production System (TPS):** His collaboration with Taiichi Ohno to develop and implement TPS, encompassing principles like Kanban and Kaizen, revolutionized manufacturing efficiency, quality control, and cost reduction. This system became a benchmark for industries worldwide.
• Creation of the Lexus Brand:** The strategic decision in 1983 to enter the luxury car market, which led to the launch of Lexus in 1989, demonstrated his foresight and ambition to compete at the highest echelons of the automotive industry. Lexus quickly established itself as a formidable luxury brand, challenging established European and American marques.
• Long-term Vision and Leadership:** Serving as president for nearly 15 years and then as chairman, Toyoda provided stable and visionary leadership that guided Toyota through periods of intense growth and global expansion.

2.5. Other Positions and Activities

Beyond his direct leadership roles as president and chairman of Toyota Motor Corporation, Eiji Toyoda held numerous influential positions in various industry associations and foundations, reflecting his broader commitment to the automotive sector and society.

• Industry Associations:**
  • Chairman of the Japan Automobile Manufacturers Association (JAMA), serving as its second chairman from 1972 to 1980.
  • Chairman of the Japan Automobile Research Institute (JARI), serving as its second chairman from 1973 to 1987.
  • Chairman of the Society of Automotive Engineers of Japan, serving as its fifth chairman from 1958 to 1961.
  • Advisor to the Japan Automobile Federation.
• Educational Institutions:**
  • First Chairman of the Board of Trustees for Toyota Gakuen (now Toyota Technical Skills Academy), from 1979 to 1998.
  • First Chairman of the Board of Trustees for Toyota Tokyo Seibi Gakuen (now Toyota Technical College Tokyo), from 1988 to 1997.
• Foundations and Advisory Roles:**
  • First Chairman of the Board of Trustees for the Toyota Foundation, from 1974 to 1990, and later Chairman from 1990 to 1998.
  • Chairman of the Assistance Foundation Data Center (later Public Interest Incorporated Foundation Assistance Foundation Center).
  • Advisor to the 2005 Japan International Exposition Foundation.
  • Advisor to the Science and Technology Exchange Foundation.
  • Director of the Cancer Research Promotion Foundation.
  • Advisor to the Assistance Foundation Center.
  • Trustee of the International Cultural Exchange Association.
  • Director of the Japan-Portugal Association.
  • Trustee of the Tatsumatsu Foundation.
  • Advisor to the Ōkouchi Memorial Foundation.
  • Advisor to the Japan Art Association.

3.1. Later Years

In his later years, Eiji Toyoda faced health challenges, including hip problems that required hospitalization and temporary use of a wheelchair. Despite these difficulties, he maintained an affable demeanor and enjoyed engaging in Sudoku puzzles, demonstrating a clear mind well into his 90s. He spent most of his final years receiving treatment at the Toyota Memorial Hospital in Toyota City, Japan, which is located close to the company's headquarters. In 2002, his wife, Kazuko Toyoda, passed away, and her estate donated 100.00 M JPY to Toyota City. Eiji Toyoda himself experienced a decline in health from February 2010, leading to his admission to Toyota Memorial Hospital. Even while hospitalized, he was known to offer encouragement and advice to then-president Akio Toyoda during his visits. In 2000, he was named an Honorary Citizen of Toyota City, an honor also bestowed upon his wife.

3.2. Death

Eiji Toyoda passed away on September 17, 2013, at the age of 100, just five days after his 100th birthday. The cause of death was heart failure, and he died at the Toyota Memorial Hospital in Toyota City. His burial site is at Kakuōzan Nittai-ji, a Buddhist temple in Nagoya.

3.3. Post-mortem Evaluation and Tributes

Following his death, Eiji Toyoda received widespread tributes and recognition for his immense contributions to the automotive industry. David Cole, the former chairman of the Center for Automotive Research, praised Toyoda, stating, "He was a real visionary and inspirational leader who understood what it would take to make Toyota a successful company." Leslie Kendall, the curator of the Petersen Automotive Museum, likened Toyoda to the Japanese equivalent of Henry Ford, acknowledging his profound impact on the industry.

In October 2013, the Japanese cabinet decided to posthumously confer upon him the Junior Third Rank (正三位), a high honor in the Japanese court hierarchy. In March 2014, his family, including his eldest son Kanshiro Toyoda (who was then chairman of Aisin Seiki), donated 1.00 B JPY from his estate to Toyota City, intended to support "monozukuri" (manufacturing) initiatives.

4.1. Family Tree

Eiji Toyoda was the son of Heikichi Toyoda, who was the brother of Sakichi Toyoda, the founder of Toyoda Loom Works and the patriarch of the Toyota Group. The descendants of Sakichi Toyoda have historically held dominant positions within the upper management of Toyota Motor Corporation since its incorporation in 1937.

Eiji Toyoda was married to Kazuko Toyoda, who passed away in 2002. They had three sons and numerous grandchildren. His sons are:

• Kanshiro Toyoda (former chairman of Aisin)
• Tetsuro Toyoda (former chairman of Toyoda Automatic Loom Works)
• Shuhei Toyoda (former president of Toyota Boshoku)

Other notable relatives include:

• Father: Heikichi Toyoda (served as an auditor for Toyota Motor Corporation)
• Younger brother: Yoshitoshi Toyoda (honorary chairman of Toyoda Automatic Loom Works)
• Uncle: Sakichi Toyoda (founder of the Toyota Group)
• Cousin: Kiichiro Toyoda (founder of Toyota Motor Corporation)
• Cousin: Setsuko (wife of Teruzo Ina, former president of INAX)
• Grandson: Akio Toyoda (former president and current chairman of Toyota Motor Corporation)

5.1. Japanese Honors

• April 1971: Medal of Honor with Blue Ribbon (藍綬褒章)
• November 1983: Grand Cordon of the Order of the Sacred Treasure (勲一等瑞宝章)
• November 1990: Grand Cordon of the Order of the Rising Sun (勲一等旭日大綬章)
• March 2000: Honorary Citizen of Toyota City (awarded jointly with his wife, Kazuko)
• October 2013: Junior Third Rank (正三位) (posthumous conferment by the Japanese cabinet)

5.2. Non-Japanese Honors

• March 1985: Commander of the Order of Prince Henry (ComIH) from Portugal
• December 1990: Knight Commander of the Order of the White Elephant (Second Class) from Thailand
• April 1991: Grand Officer of the Order of the Crown of Belgium
• April 1992: Knight Grand Cross of the Order of the Crown of Thailand (First Class)
• September 1993: Honorary Companion of the Order of Australia (AC)
• 1994: Inducted into the Automotive Hall of Fame in the United States, becoming the second Japanese individual to receive this honor after Soichiro Honda.
• 1995: Awarded the James Watt International Gold Medal by the Institution of Mechanical Engineers in the United Kingdom.
• 1999: Named one of "The 20 Most Influential Asians of the Century" by Time magazine. Other Japanese individuals on this list included Emperor Hirohito, Akio Morita, Akira Kurosawa, Issey Miyake, and Daisuke Inoue.
• May 2001: Knight Grand Cross of the Order of the Direkgunabhorn (First Class) from Thailand