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Toyota Motor Corporation

AutomotiveFounded 1937
Reviewed by Swet Parvadiya
Company data updated: October 2026

Founders

Who Founded Toyota?

Kiichiro Toyoda, Sakichi Toyoda · Founded 1937 · HQ today: Toyota City, Aichi, Japan

Who founded Toyota?

Toyota was founded by Kiichiro Toyoda, Sakichi Toyoda in 1937. It is now led by Kenta Kon.

Founders
Kiichiro Toyoda, Sakichi Toyoda
Founded
1937
Headquarters
Toyota City, Aichi, Japan
Number of founders
2
Current CEO
Kenta Kon (since 2026)
Where was Toyota founded?
Toyota was founded in Toyota City, Aichi, Japan in 1937.
When was Toyota founded?
Toyota was founded in 1937.
Who started Toyota?
Toyota was founded by Kiichiro Toyoda and Sakichi Toyoda.
How old is Toyota?
Toyota is 89 years old as of 2026.

Founding Story

Kiichiro Toyoda spent years inside Toyota Industries watching his father Sakichi's automatic loom technology reach commercial scale, and he had a specific conviction: the internal combustion engine represented the same kind of technological transition for mobility that the automatic loom had represented for textiles. He launched the automotive department inside Toyota Industries in the early 1930s and pushed for independent corporate status. Toyota Motor Corporation was incorporated in 1937. The first commercially produced Toyota vehicles were trucks, built during wartime for the Japanese military. Passenger car development began in earnest after the war, with the Toyopet Crown expanding Toyota's ambitions toward private vehicle ownership in Japan. The first attempt to enter the United States market in 1958 with the Toyopet Crown failed, the car was underpowered for American highway speeds and unreliable in American driving conditions. The failure was instructive. Toyota re-entered the American market more carefully, with better-engineered vehicles, and spent the 1960s and 1970s building a reputation for reliability that American manufacturers had not prioritized. The 1973 oil shock created a demand surge for fuel-efficient Japanese vehicles that American automakers had not anticipated. Toyota and Honda benefited. The Lexus brand launched in 1989 with the LS 400, a vehicle specifically engineered to be more reliable and quieter than the Mercedes S-Class it was targeting. The launch defined Toyota's approach to premium segments: engineer to a specific, measurable quality standard, price below the European incumbent, and let the product make the case. By 1997, the Prius had applied the same disciplined engineering philosophy to hybrid powertrains that virtually every major automaker had dismissed as commercially unviable.

Kiichiro Toyoda

Co-founder 1937

Background

Son of Sakichi Toyoda (inventor of the automatic loom); studied engineering at Tokyo Imperial University.

Role at Toyota Motor Corporation

Kiichiro Toyoda (1894-1952) founded the Toyota Motor Corporation in 1937, spinning it out of his father's successful textile machinery business. Against massive internal skepticism, he heavily invested the family's capital into automotive research, producing Toyota's first passenger car, the Model AA. He established the early foundations of the 'Toyota Production System' (just-in-time manufacturing) before resigning as President in 1950 following a severe financial crisis and labor strike.

Education: Meiwa High School.

Toyoda was born on June 11, 1894 and died on March 27, 1952. Kiichiro Toyoda was born in 1894.

Sakichi Toyoda

Co-founder 1926

Background

Sakichi Toyoda was a self-taught inventor from Shizuoka prefecture who spent decades perfecting automated textile loom technology. His Type-G Toyoda Automatic Loom in 1924 could stop automatically when a thread broke, embedding the concept of jidoka, automation with human judgment, into Japanese manufacturing. He sold the loom patent to Platt Brothers of England for 100,000 pounds in 1929. That capital funded his son Kiichiro automotive research and the eventual creation of Toyota Motor Corporation.

Role at Toyota Motor Corporation

Sakichi Toyoda was not the founder of Toyota Motor Corporation but his inventions and philosophy created the foundation on which it was built. His loom patents generated the capital Kiichiro needed to experiment with automobiles. More his manufacturing philosophy, machines should stop and alert humans when problems occur rather than continue producing defects, became one of the two pillars of the Toyota Production System alongside just-in-time production. Sakichi died in 1930, years before Toyota Motor Corporation was established, but his principle of building quality into the process rather than inspecting it afterward remains central to Toyota identity and operations today.

Sakichi Toyoda was born in 1867.

Toyota Motor Corporation: CEO & Leadership History

Full timeline →

Kenta Kon

President and Chief Executive Officer

2026 – Present

As CFO, he managed the immense capital allocation required for Toyota's massive $35 billion commitment to fully electrify its vehicle lineup by 2030.

Koji Sato

President and Chief Executive Officer (now Vice Chairman)

2023 – 2026

Koji Sato inherited a profitable but scrutinized Toyota.

Akio Toyoda

President and Chief Executive Officer (now Chairman)

2009 – 2023

Akio Toyoda took leadership during one of Toyota's hardest modern periods, including the global financial crisis and the unintended acceleration recall crisis.

Katsuaki Watanabe

President

2005 – 2009

Toyota became the largest carmaker in the world by sales in 2008, then reported its first operating loss in decades. Akio Toyoda succeeded him in June 2009.

Keep researching Toyota

Who Founded Toyota? FAQ

Who is recognized as the grandfather of Toyota's industrial empire?

Sakichi Toyoda (1867–1930), known as the "King of Japanese Inventors", whose invention of Japan's first wooden handloom, powered loom, and the revolutionary Type G automatic loom created the technical and financial basis for Toyota.

Who officially founded Toyota Motor Corporation as an automaker?

Kiichiro Toyoda (1894–1952), Sakichi's eldest son, who established the automotive division within Toyoda Automatic Loom Works in 1933 and incorporated Toyota Motor Co., Ltd. as an independent automotive manufacturer on August 28, 1937.

What were Sakichi Toyoda's famous "Five Main Principles"?

Penned in 1935, they urge employees to contribute to national development through industry, remain studious and creative, avoid frivolity, foster a warm and harmonious workplace, and live reverently and gratefully.

How did Kiichiro Toyoda prepare for entering the automotive industry?

Kiichiro graduated in mechanical engineering from Tokyo Imperial University in 1920. He visited Ford and General Motors automotive plants in Detroit and toured industrial factories in Europe in 1921 and 1929, analyzing automotive assembly and metallurgy.

What convinced Kiichiro Toyoda that automobiles were the future of Japan?

Seeing imported Ford and GM vehicles dominate Japanese streets after the 1923 Great Kanto Earthquake convinced Kiichiro that motor transport was vital to Japan's national economy, and that domestic engineering must master mass auto manufacturing.

What dying mandate did Sakichi Toyoda give to Kiichiro regarding automobiles?

Shortly before his death in 1930, Sakichi urged Kiichiro: "I served the nation with the loom. I want you to serve it with the automobile. Open the path yourself," giving his blessings and financial resources to fund car development.

What was the Model AA, developed by Kiichiro Toyoda in 1936?

The Model AA was Toyota's first passenger car, featuring an all-steel aerodynamic body inspired by the Chrysler Airflow and a 3.4-liter 6-cylinder engine reverse-engineered from Chevrolet, establishing Toyota's mass manufacturing capability.

Where was Toyota's original automobile development workshop located?

Kiichiro established the automotive department in 1933 inside a corner of the Toyoda Automatic Loom Works factory in Kariya, Aichi Prefecture, purchasing machine tools from America and Germany.

What personal hardships did Kiichiro Toyoda endure to keep Toyota alive?

Kiichiro worked directly on the shop floor alongside machinists, risked his family's reputation, and stepped down as president in 1950 to resolve a painful labor dispute and bank restructuring, passing away two years later in 1952.

What critical role did Eiji Toyoda play alongside Kiichiro?

Eiji Toyoda, Kiichiro's younger cousin, joined the automotive department in 1936. He established the Motomachi manufacturing plant, co-architected the Toyota Production System with Taiichi Ohno, and led Toyota to global prominence as president and chairman.

How are Sakichi and Kiichiro Toyoda honored today?

Kiichiro Toyoda was inducted into the Automotive Hall of Fame in Detroit in 2018; the Toyota Commemorative Museum of Industry and Technology in Nagoya preserves their original looms, experimental engines, and machine tools.

What was the origin of the "Just-in-Time" manufacturing concept?

Recognizing that capital-constrained Japan could not afford the massive parts inventory warehouses common in American automotive plants, Kiichiro Toyoda coined the slogan "Just in Time" in 1938, requiring parts to arrive exactly when needed.

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Content is for informational purposes only. Not financial advice. Data sourced from SEC filings, annual reports, and public records. See our full disclaimer and methodology.