◾The war-torn Japanese economy was starved for capital. Therefore, a
huge investment in the latest Western technology was impossible.
◾The outside world was full of established carmakers eager to estab-
lish themselves in Japan and to defend their markets against Japanese
exports.
How could a fledgling carmaker in a ruined country surmount such
obstacles?
Historic Bargain
Japan was in the throes of a depression. The occupying Americans had
decided to attack inflation by restricting credit, but they overdid it. As
car sales collapsed and its bank loans became exhausted, Toyota faced
bankruptcy.
Toyota President Kiichiro T
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