September 1950: Settlement of Labor Dispute at Toyota Motor Co., Ltd.

Major Dispute Threatens Company's Existence

The majority of companies downsized as a result of effects from the Dodge Line, generating a steady stream of laid-off workers. Toyota Motor Co. conducted labor talks based on a policy of sharing what little it had to prevent layoffs, but the company faced the potential risk of bankruptcy without bank financing, and personnel adjustments became unavoidable.

Based on a corporate revival plan, the Kamata Plant and Shibaura Plant, which were far from achieving independent profitability, were closed on June 10, 1950. A total of 2,146 employees were laid off including 378 from the two plants, reducing employment to 5,994 persons. At that time, President Kiichiro Toyota decided to resign.

Organizational Chart

Organizational Chart