Model AA Passenger
Car and Model GA Truck Launched
The Toyoda Automatic Loom Works Model G1 truck was announced
in November 1935 and sold by Hinode Motors, the first dealer, starting in
December. That year, a total of 14 trucks were sold.
Initially, the Model G1 truck experienced a large number of
rear axle housing failures.1 The Ford truck rear axle housing that had been
sketched used flash-butt welding to join the pipe that made up a portion of the
housing and the flange, and the contact surfaces of the two parts were joined
entirely by welding. The welds, however, were not noticed and the housing was
joined by gas welding on the exterior surfaces of the joints only. As a result,
the gas welded portions were so weak that they often broke while being shipped
to Nagoya. The problem was resolved by designing the pipe and flange to be
joined by shrink fitting.
This was one example of a defect, and the defects were
addressed one by one. With regard to the initial quality defects, Kiichiro
Toyoda made the following statement. "Since this was the first
domestically produced vehicle, we relied on the understanding and support of
automobile industry companies, and the first vehicles that we shipped were hardly
usable by today's standards. However we were fortunate to not suffer any major
problems. This, of course, would not have been possible without our best
efforts, but the various aid we received for our first domestic vehicle was also
a large part of our success.
Exterior of the
Toyoda Domestically Made People's Car exhibition
The Model G1 truck and Model A1 passenger car were improved
to become the Model GA truck and Model AA passenger car. An automotive assembly
plant was constructed at a site about one kilometer northeast of the Toyoda
Automatic Loom Works head office in May 1936 to assemble the Model GA truck and
Model AA passenger car. When the automobile assembly plant was completed, the
body prototype plant was converted into a stamping plant, and stamped parts
were shipped to the new body plant for assembly. In addition, manufacturing
processes related to engines, powertrains, and suspensions performed at the
Toyoda Automatic Loom Works head office plant were collectively referred to as
the 'manufacturing plant,' and the various components were shipped from there
to the automobile assembly plant.
When production at the Kariya automobile assembly plant came
online, an exhibition to commemorate the completion of what it called the
'Toyoda Domestically Made People's Car' was held at the Tokyo Commercial &
Industrial Museum in Marunouchi, Tokyo from the 14th to 16th of September 1936,
when monthly production exceeded 100 units. On display were 15 vehicles
including four Model AA passenger cars, two Model AB Phaetons, and a Model GA
truck, a Model DA bus chassis, a fire truck, a military truck, and a dump truck
with a winch (Table 1-4).
Toyoda Automatic Loom
Works Designates a Licensed Company under the Automotive Manufacturing
Industries Law
In the early 1930s, the Japanese automotive market was
dominated by vehicles assembled by Ford-Japan and GM-Japan. Even before Ford
and GM entered the Japanese market, the Ministry of War supported the
manufacture of military trucks, but this did not lead to the development of a
domestic automotive industry. Ford-Japan and GM-Japan steadily increased the
volume of automobile parts imported from the United States for assembly,
contributing to the expansion of Japan's trade deficit. The establishment of a
domestic automotive industry became an urgent matter from the perspective of
national defense as well.
The Ministry of Commerce and Industry created the Automobile
Industry Establishment Research Committee within the Ministry in May 1931 and
began investigating the plan for domestic automobile manufacturing. As a
result, three private automakers were combined to design and manufacture
automobiles according to Ministry standards, and nine prototype vehicles were
completed in March 1932. The Ministry plan, however, collapsed two years later,
and establishment of a national automotive industry was not achieved.
It was under these circumstances that Kiichiro Toyoda
launched the Toyoda Automatic Loom Works automotive business in September 1933
and Yoshisuke Ayukawa established the Automobile Manufacturing Company (now
Nissan Motor) in December of that year. As discussed above, the Ministry of
Commerce and Industry and the Ministry of War gathered seven automobile
manufacturing related companies in April 1934 to submit their opinions concerning
the creation of domestic automotive industry, and at that time, Ayukawa
presented the idea of establishing the domestic industry through an alliance
with GM. The plan called for the creation of a tie-up with GM, the manufacture
of automobile parts to start, and the nationalization of Chevrolet over 20
years.
Automobile Manufacturing Company's nationalization plan was
not carried out because of opposition from the Ministry of War, but it led to
changes in existing national policy. The government provided support to private
companies that voluntarily developed domestic industry in accordance with the
policies and conditions set by the government, rather than simply subsidizing
private companies.
In order to determine these policies and conditions, the
Ministerial Conference on Establishing an Automobile Industry was established
and held its first meeting on August 10, 1934. The participating ministries
included the Ministry of Commerce and Industry, Ministry of War, Ministry of
the Navy, Ministry of Railways, Ministry of Finance, Ministry of Home Affairs,
Resources Bureau, Ministry of Foreign Affairs, and Department of Overseas
Affairs (the Ministry of Foreign Affairs and Department of Overseas Affairs
participated starting from the 13th meeting).
At the seventh meeting, held on September 4, 1934, Kiichiro
expressed his opinions, as previously mentioned, while President Yoshisuke
Ayukawa of Nissan Motor and President Tomonosuke Kano of Automobile Industries
also shared their opinions. Chairman Koshiro Shiba of Mitsubishi Heavy
Industries, Ltd. and Senior Managing Officer Bungo Shimoda of Kawasaki Motor
testified at the sixth meeting on August 29, and Chairman Tamaki Makita of
Mitsui Mining testified at the eighth meeting on September 7. The result was that
Toyoda Automatic Loom Works and Nissan Motor, which actually begun plant
construction with the aim of mass production of automobiles, were designated as
the first licensed companies.
The Automotive Manufacturing Industries Law was promulgated
on May 29, 1936 and came into effect on July 11.2 Toyoda Automatic Loom Works
immediately applied for a license under the Law on July 23 and was designated a
licensed company by the Ministry of Commerce and Industry on September 19.
Nissan Motor was designated a licensed company on September 22. Later, Diesel
Automobile Industry Co., Ltd. (previously Tokyo Automobile Industries Co.,
Ltd.) was designated on April 9, 1941 to become the third company licensed
under the Automotive Manufacturing Industries Law.
When Toyoda Automatic Loom Works was designated under the
law, the director of Ministry of Commerce and Industry's Engineering Bureau
instructed the company to use domestically-produced materials and parts for
automobile manufacture. The use of domestic parts became obligatory starting in
1938.
When the Automotive Manufacturing Industries Law came into
effect, assembly production by Ford-Japan and GM-Japan became difficult to
maintain. Production volumes were limited and duties on imported parts were
sharply increased, including an increase of the duties on engines from 35
percent to 60 percent of the value. As a result, Ford-Japan sought to establish
alliance with Toyota Motor Co., Ltd. and Nissan Motor and conducted
negotiations in 1938 and 1939, but no agreement was reached. In the end,
Ford-Japan and GM-Japan had to suspend production in 1939.
Source: TOYOTA MOTOR CORPORATION
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