
After World War II, Toyota faced significant challenges as Japan transitioned to peace. Initially, passenger car production was banned by the U.S.-led occupation forces, but Toyota was permitted to produce trucks to aid in rebuilding Japan’s infrastructure. By 1947, Toyota launched its first post-war passenger car, the Toyota SA, marking the company's reentry into the passenger vehicle market.
The onset of the Cold War in 1947 led to a shift in U.S. policies, emphasizing Japan's economic recovery and political stability. This policy shift, known as the "Reverse Course," allowed Japanese automakers to resume passenger car production in 1949. However, a new economic stabilization program to curb inflation caused severe financial strain in the automotive sector. Toyota struggled with a shortage of funds, compounded by widespread defaults on truck loans.
The Bank of Japan intervened, bailing out Toyota on the condition that the company implement internal reforms. This financial assistance and structural changes enabled Toyota to stabilize and rebuild its operations, setting the stage for its eventual growth and global success.