In the 40s, Toyota Motor Corporation began production of AE and AC passenger cars and KC and KB trucks. A few years later, Toyota Machine Works and Toyota Shatai Kogyo were also incorporated. In 1947, the production of SA compact passenger cars, SB small trucks, and BM trucks also begin and the 100,000th Toyota vehicle was produced domestically.
By the end of 1949, the company was on the verge of bankruptcy, but eventually obtained a loan to stay afloat. In June 1950, Toyota was going out of business and sold only 300 trucks. Soon enough, the management announced wage reductions and layoffs, thus many people left the company. At that time, Taizo Ishida succeeded Kiichiro Toyoda and within a few months an order of over 5,000 vehicles was placed for the US military for the Korean War.
Therefore, the company was eventually revived and Ishida soon made the decision of investing in equipment and purchased the Motomachi Plant in 1959. This plant gave the company a lead over Nissan during the 60s and even allowed Toyota to meet production demands.