Daily Blog: It Started with the Silkworm

In 1959 the city of Koromo, Japan changed its name.

In the late 1800’s and through the early 1900’s Koromo’s economy was largely dependent on the silkworm. As the demand for raw silk declined, so did the city.

By the 1930’s Koromo’s population was less than 20,000. A new strategy was needed.

So in 1934 this five-figure city invited a newly formed company named Toyota to establish its base in Koromo.

The strategy was so successful that in 1959 Koromo changed its name to Toyota City.

Today the population of Toyota City is in excess of 400,000 – and an estimated “70% of its . . . residents rely on the auto industry for their livelihood, so when Toyota suffers, its hometown suffers.”

Or, as one local citizen of Toyota City said, “Toyota is a global company, but its spirit is local.”

To read more about the trouble in Toyota City, go to Business Week, April 27, 2009, p. 50.