BookTitleToyota Tsusho 70-Year History

Summary

Toyota Tsusho 70-Year History

Section 2 Toward Establishing Japan’s InauguralMonthly Installment Sales Company1 Introduction of the Monthly Installment Sales MethodKiichiro Toyoda set his sights on Shotaro Kamiya, who was working for GMJapan at the time (and would go on to be the first president of Toyota MotorSales).While working previously for Mitsui & Co., Kamiya had worked overseas for along time. And when he went to work for GM Japan, where the knowledge gainedfrom his overseas experiences was in demand, he became involved in the sale ofimported vehicles. A shrewd businessman, within five years he became the zonemanager and department head of GM Japan’s Sales and Advertising Department,the highest position for a Japanese employee at that company.However, on August 9, 1935, the Cabinet adopted an order on the Establishmentof the Automobile Industry. The order established a licensing system for theautomotive industry and limited eligible licensees to corporations of which amajority of the shares were owned by Japanese citizens. As a result, Ford-Japanand GM-Japan found it difficult to continue business. Kamiya considered a moveto a domestic manufacturer. He visited an acquaintance from his days at theSeattle branch office of Mitsui & Co., Tojiro Okamoto, who was also a graduate ofhis alma mater, the Nagoya Commercial Academy (currently, Nagoya CommercialHigh School). He requested an introduction to Toyoda Automatic Loom Works,which had declared its intention to manufacture automobiles. In his Seattle days,Okamoto had worked for Toyo Menka (later know as Tomen Corp.), and from1932 he served as a director of Toyoda Boshoku.Upon meeting Kamiya through Okamoto’s recommendation, Kiichiro said,“If you come to work for me, I will leave sales completely up to you.”Struck byKiichiro’s passion, Kamiya declared his intention to join the company the nextday.Having been entrusted with automotive sales, Kamiya followed theorganizational structure of GM Japan, employing a policy of establishing anindependent sales firm where the manufacturer did not participate in a capitalsense and where each prefecture was one unit.As he was dedicated to the principle of“Customer first,”Kamiya also promotedthe monthly installment method. GM Japan and Ford Japan had, both madeinroads into Japan by establishing finance companies that implemented monthlyinstallment sales. By around 1935, nearly 80% of vehicle sales in Japan wereon installment plans. Realizing the necessity of monthly installment sales forToyota vehicles, Kamiya aimed to establish the first Japanese company focusedon monthly installment sales. It was his belief that,“In a country where consumerfinancing is not sufficiently developed, the only course is to establish one’s ownfinancing.”This was about one year before the establishment of Toyota Motor Co.,Ltd.36