was a Japanese business executive who served as chairman of
Toyota Motor Corporation
is a Japanese Multinational corporation, multinational Automotive industry, automotive manufacturer headquartered in Toyota City, Aichi, Japan. It was founded by Kiichiro Toyoda and incorporated on August 28, 1937. Toyota is the List of manuf ...
from 1992 to 1999,
[Toyota]
Honorary Chairman
as well as chairman of the influential from 1994 to 1998. Under Toyoda's leadership, Toyota started manufacturing vehicles overseas
and undertook the development of the
Lexus brand. He was the grandson of the
Toyoda Automatic Loom Works founder
Sakichi Toyoda and the son of the Toyota Motor founder
Kiichiro Toyoda.
Early life and education
Shoichiro Toyoda was born in
Nagoya
is the largest city in the Chūbu region of Japan. It is the list of cities in Japan, fourth-most populous city in Japan, with a population of 2.3million in 2020, and the principal city of the Chūkyō metropolitan area, which is the List of ...
on February 27, 1925. The eldest son and second of four children, his parents were
Kiichiro Toyoda, the founder of Toyota Motor, and Hatako Toyoda.
He was the grandson of
Sakichi Toyoda, the founder of the
Toyoda Automatic Loom Works.
Toyoda graduated from
Nagoya University with a degree in engineering in 1947.
He avoided being drafted during
World War II
World War II or the Second World War (1 September 1939 – 2 September 1945) was a World war, global conflict between two coalitions: the Allies of World War II, Allies and the Axis powers. World War II by country, Nearly all of the wo ...
, because the field of engineering was considered vital to the war effort.
After graduating, he worked at a fishcake-processing plant in Hokkaido, and at a house construction firm.
In 1955, Toyoda received a PhD in engineering from
Tohoku University, after completing his doctoral dissertation on fuel injection.
Career
In 1952, Toyoda joined Toyota Motor following the sudden death of his father.
Until then, he had not planned to join the company, but did so at the urging of his uncle,
Eiji Toyoda.
His initial role was director of the inspection department.
In 1957, Toyoda signed off on exporting the
Toyopet Crown to the United States, after taking it on a road trip himself.
Lacking an engine powerful enough to drive on US highways, however, the Crown failed to win over American drivers and incurred a significant loss for the company.
The experience was a turning point for Toyoda, who later wrote that he became "determined to develop a high-quality passenger car that would perform well anywhere in the world".
Toyoda was appointed managing director in 1961,
the same year that Toyota introduced
Total Quality Control (TQC).
In his role as deputy general manager, Toyoda became a "standard-bearer" for TQC within Toyota Motor, supporting Eiji Toyoda, who served as general manager for QC promotion and went on to become president.
In 1965, Toyota Motor applied for and was awarded the
Deming Prize for successful implementation of
Total Quality Management (TQM).
In 1967, Toyoda was promoted to senior managing director, and became executive vice president in 1972.
Company highlights during this period included the launch of the
Toyota Corolla
The is a series of compact cars (formerly Subcompact car, subcompact) manufactured and marketed globally by the Japanese automaker Toyota Motor Corporation. Introduced in 1966, the Corolla was the best-selling car worldwide by 1974 and has bee ...
in 1966,
and its introduction to the US market in 1968;
the Corolla became the bestselling car in the world in 1974,
and went on to become the bestselling car of all time.
Integration of Toyota Motor Corporation
In 1981, Toyoda moved from Toyota Motor to become president of Toyota Motor Sales.
In 1982, the two organizations merged to form Toyota Motor Corporation, with Toyoda as the new entity's president.
He served as chairman from 1992 to 1999; and he became honorary chairman in 1999.
[MCADCafé]
"Dr. Shoichiro Toyoda To Receive SAE Foundation's 2005 Manufacturing Leadership Award,"
PR Newswire. March 15, 2005.
Following the merger of Toyota Motor with Toyota Motor Sales, Toyoda led a concerted effort to blend the two organizations' distinct corporate cultures, emphasizing what he called "'The Three Cs': Creativity, Challenge and Courage".
Until then, their management philosophies had been compared to "oil and water"; the old Toyota Motor had prioritized "efficiency", while Toyota Motor Sales had a more "free and open" culture.
In 1984, a group was formed to explore organizational reform within Toyota, which found that the company suffered from "big company disease", discouraging younger employees from proposing new ideas due to the bureaucracy which had become entrenched within the old Toyota Motor.
Toyoda pushed the company to overcome its "rigidity" to encourage innovation, and in 1988, nearly all the recommendations of the study group were adopted.
Starting in 1990, Toyoda shifted gears to emphasize contributions to society, rather than corporate social responsibility.
In 1992, the company updated its Basic Precepts with new Basic Principles, and also issued a document that came to be known as the Toyota Global Earth Charter.
Before stepping down as president in 1992, Toyoda drove the adoption of the Toyota Development Center System, organizing the company in "clusters" that would help foster creativity and innovation.
International expansion
Under Toyoda's leadership, Toyota expanded its global footprint by manufacturing vehicles in local markets, starting with North America.
In 1983, Toyoda opened discussions with
General Motors
General Motors Company (GM) is an American Multinational corporation, multinational Automotive industry, automotive manufacturing company headquartered in Detroit, Michigan, United States. The company is most known for owning and manufacturing f ...
to form a joint venture to take over a GM factory in California.
Called
NUMMI, the New United Motor Manufacturing, Inc., started producing the Toyota Corolla, as well as the
Chevrolet Nova, in 1984.
Two years later, Toyota opened its first wholly-owned vehicle manufacturing plant in Kentucky, and began production of the
Toyota Camry in 1988.
When the plant was opened, Toyoda stated that the company would "work hard to become a good citizen of Kentucky and America".
The company subsequently opened plants in
Cambridge, Ontario in Canada, and
Burnaston in the United Kingdom.
By the time Toyoda became chairman in 1992, Toyota had manufacturing plants in 22 countries.
New vehicle designs
After successfully building Toyota's reputation as a manufacturer of affordable compact cars, in 1989, the company introduced the
Lexus brand of luxury automobiles to the US market, as Toyoda aimed to design a vehicle that could compete with German models.
In 1991, Toyota introduced the first wide-body Camry, an example of the growing number of vehicles specifically designed for markets outside Japan.
Even after he was no longer involved in day-to-day management of the company, Toyoda remained personally interested in car design, and was an enthusiastic participant at test-drive events into his later years.
Toyoda was a staunch opponent of Toyota's participation in
Formula One
Formula One (F1) is the highest class of worldwide racing for open-wheel single-seater formula Auto racing, racing cars sanctioned by the Fédération Internationale de l'Automobile (FIA). The FIA Formula One World Championship has been one ...
races, publicly disagreeing with later company president
Hiroshi Okuda, who nevertheless entered Toyota into the F1 in 1999 and orchestrated its purchase of the
Fuji Speedway
is a motorsport race track standing in the foothills of Mount Fuji, in Oyama, Shizuoka, Oyama, Suntō District, Shizuoka, Suntō District, Shizuoka Prefecture, Japan. It was built in the early 1960s. In the 1980s, Fuji Speedway was used for the ...
in 2000.
Chairman of Keidanren
From 1994 to 1998, Toyoda served as chairman of
Keidanren, the Japanese Business Federation.
Taking the helm of the powerful business lobbying organization in the aftermath of the
Japanese asset price bubble, Toyoda helped to navigate tense trade relations with the US.
When his younger brother
Tatsuro Toyoda, the new president of Toyota Motor Corporation, was unable to join discussions with US Ambassador
Walter Mondale due to illness, Shoichiro stepped in as chairman of Toyota to negotiate the voluntary purchase of more American parts to help alleviate the US trade deficit with Japan, roughly half of which was due to automobiles.
Toyoda also led Keidanren in lobbying the government to reduce corporate tax rates and deregulate the economy.
Personal life
Toyoda remained honorary chairman of Toyota from 1999 until his death.
He died of sudden heart failure on February 14, 2023, at age 97.
He was survived by his wife, daughter, and son
Akio Toyoda
is a Japanese business executive who is the chairman of Toyota Motor Corporation. He was previously the company's president and chief executive officer (CEO). Toyoda is a great-grandson of the industrialist, Sakichi Toyoda, and a grandson of bot ...
, who has served as president of Toyota Motor Corporation for 14 years and stepped down from the post in April 2023.
Professional recognition
* 1980:
Deming Prize, Japan
* 1993: International Fellow
Royal Academy of Engineering
The Royal Academy of Engineering (RAEng) is the United Kingdom's national academy of engineering.
The Academy was founded in June 1976 as the Fellowship of Engineering with support from Prince Philip, Duke of Edinburgh, who became the first senio ...
* 2000: FISITA Medal of the International Federation of Automotive Engineering Societies
* 2005:
Society of Automotive Engineers Foundation's Manufacturing Leadership Award, United States
* 2007: Induction into the Automotive Hall of Fame, Detroit, Michigan, USA
National honors (Japan)
* November 1984:
Medal of Honor
The Medal of Honor (MOH) is the United States Armed Forces' highest Awards and decorations of the United States Armed Forces, military decoration and is awarded to recognize American United States Army, soldiers, United States Navy, sailors, Un ...
(Blue Ribbon)
[Toyota Chairmen: honours and decorations](_blank)
/ref>
* April 1995: Grand Cordon of the Order of the Sacred Treasure
Other national honors and decorations
* May 1986: Grand Cross of the Order of Antonio Jose de Sucre of VenezuelaKnight Commander of the Order of the British Empire
The Most Excellent Order of the British Empire is a British order of chivalry, rewarding valuable service in a wide range of useful activities. It comprises five classes of awards across both civil and military divisions, the most senior two o ...
(KBE), UKOrder of Australia
The Order of Australia is an Australian honours and awards system, Australian honour that recognises Australian citizens and other persons for outstanding achievement and service. It was established on 14 February 1975 by Elizabeth II, Monarch ...
(AC)Thailand
Thailand, officially the Kingdom of Thailand and historically known as Siam (the official name until 1939), is a country in Southeast Asia on the Mainland Southeast Asia, Indochinese Peninsula. With a population of almost 66 million, it spa ...
Order of Merit of the Italian Republic
The Order of Merit of the Italian Republic () is the most senior Italian order of merit. It was established in 1951 by the second President of Italy, President of the Italian Republic, Luigi Einaudi.
The highest-ranking honour of the Republi ...
Citations
General and cited references
* Basu, Shankar (1999)
''Corporate Purpose: Why It Matters More Than Strategy''
London: Taylor & Francis. .
* Hino, Satoshi, and Andrew Dillon (2006)
''Inside the Mind of Toyota: Management Principles for Enduring Growth.''
Productivity Press. . .
External links
* Toyota Motor Corporation
is a Japanese Multinational corporation, multinational Automotive industry, automotive manufacturer headquartered in Toyota City, Aichi, Japan. It was founded by Kiichiro Toyoda and incorporated on August 28, 1937. Toyota is the List of manuf ...
official bio
{{DEFAULTSORT:Toyoda, Shoichiro
1925 births
2023 deaths
20th-century Japanese businesspeople
Businesspeople awarded knighthoods
Chief executives in the automobile industry
Commanders Crosses of the Order of Merit of the Federal Republic of Germany
Commanders of the Order of Isabella the Catholic
Commanders with Star of the Order of Merit of the Republic of Poland
Grand Cordons of the Order of the Rising Sun
Grand Crosses of the Order of Lakandula
Grand Crosses of the Order of Merit (Portugal)
Grand Officers of the Legion of Honour
Honorary companions of the Order of Australia
Honorary Fellows of the London School of Economics
Honorary Knights Commander of the Order of the British Empire
Japanese chairpersons of corporations
Japanese chief executives
Shoichiro Toyoda
Knights Grand Cross with Collar of the Order of Merit of the Italian Republic
Nagoya University alumni
People from Aichi Prefecture
Presidents of the Japan Automobile Manufacturers Association
Recipients of the Grand Decoration with Star for Services to the Republic of Austria
Recipients of the Order of Isabella the Catholic
Recipients of the Order of Merit of the Republic of Turkey
Recipients of the Order of the Paulownia Flowers
Recipients of the Order of the Sacred Treasure, 1st class
Tohoku University alumni
Shoichiro
Toyota people