How a family of weavers built the world's largest automaker
Before it conquered the global highways, Toyota was a company built on looms. By applying the logic of automated weaving to the assembly line, a Japanese family transformed a textile spinoff into a manufacturing titan that now produces 10 million vehicles every year.
The foundations of Toyota lie in the textile industry. In 1924, Sakichi Toyoda developed the Model G Automatic loom, a machine designed with 'jidoka'—the principle that a machine should stop itself if an error occurs. The patent for this loom was sold to a British firm in 1929, providing the essential capital for Kiichiro Toyoda to pivot toward automotive engineering.
The transition from fabric to Ford-style manufacturing was fraught with difficulty. While the company's first production model, the G1 truck, debuted in 1935, the company's early years were marked by financial instability and the devastation of World War II. By the late 1940s, a severe shortage of funds forced the Bank of Japan to bail out the firm, provided they implemented rigorous reforms.
Toyota's global dominance was cemented by its ability to adapt to shifting economic landscapes. During the 1970s energy crisis, the company capitalized on the American demand for fuel-efficient small cars. They also mastered the art of navigating trade barriers; for example, in 1972, they bypassed the 25% 'chicken tax' on imported trucks by partnering with an American firm to build truck beds locally.
Today, the Toyota Group is a massive conglomerate. While the company has faced criticism for being slow to adopt all-electric vehicles, preferring hydrogen technology like the Mirai, its scale is undeniable. As of 2025, the corporation holds a market capitalization of approximately US$259.7 billion, managing a vast portfolio of brands including Lexus, Daihatsu, and Century.
Source: Toyota
