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History of Toyota

Toyota in the 1970s Energy Crisis and Strategic Alliances

1970 Jan 1
United States

The energy crisis of the 1970s marked a turning point for the American auto industry. As fuel prices soared, consumer preferences shifted from large, inefficient vehicles to smaller, more fuel-efficient cars. While domestic automakers struggled during this period, often referred to as the malaise era, foreign manufacturers like Toyota were well-prepared to meet the demand for economical, reliable vehicles. Toyota’s success in the U.S. market during this time contributed to growing anti-Japanese sentiment, prompting discussions in the U.S. Congress about imposing import restrictions to protect domestic automakers.


Meanwhile, Toyota also strengthened its position in Japan’s automotive landscape. In the 1960s, Japan began slightly opening its auto market to foreign competition. To reinforce its capabilities ahead of this shift, Toyota strategically acquired stakes in other Japanese manufacturers. This included Hino Motors, a leader in commercial trucks, buses, and diesel engines, and a 16.8% stake in Daihatsu, renowned for producing kei cars—the smallest highway-legal vehicles in Japan. These partnerships marked the beginning of long-standing collaborations, enabling Toyota to diversify its expertise and expand its offerings in both domestic and international markets.


By adapting to changing market conditions and forming strategic alliances, Toyota not only weathered the challenges of the 1970s but also strengthened its position as a global leader in the automotive industry.

Page Last Updated: 11/14/2024

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