BookTitleToyota Tsusho 70-Year History

Summary

Toyota Tsusho 70-Year History

Not being a munitions company, Toyota Sangyo’s applications for automobiledistribution were always refused, and many of the young employees were calledup for military service, so the number of employees gradually decreased.2 The Increase of Capital to 10 Million YenIn 1944, the news came out that Toyo Spinning would release 140,000 shares ofToyota Motor Co., Ltd. that it owned. Before the war, the Toyota Group had notaccepted the ownership of shares by people who were not connected to the ToyotaGroup in principle, which was based on the management philosophy of SakichiToyoda. But many companies wanted to own shares in the profitable ToyotaGroup, and the number of outside shareholders started to expand, mainly in thefinancial world. One such shareholder was Toyo Spinning, which owned shares ofToyota Motor Co., Ltd.Group leadership decided that it was not wise to have so many shares heldoutside the group, and, made plans to raise funds with Toyota Sangyo as therecipient. In August 1944, a decision was made to raise Toyota Sangyo’s capital to10 million yen and to use it as purchase funds.Due to this increase, the shareholder composition of Toyota Sangyo changedgreatly, and Toyota Motor Co., Ltd., Risaburo Toyoda, and Kiichiro Toyodabecame the major shareholders. This made its character as a holding companyclearer.History39