The town of Koromo (挙母市), the predecessor of present day Toyota, was a major producer of silk, and prospered in the Mikawa Region from the Meiji Era through the Taisho period. As the demand for raw silk declined in Japan and abroad, the town entered a period of gradual decline. That decline encouraged Kiichiro Toyoda, cousin of Eiji Toyoda, to look for manufacturing alternatives to the family's automatic loom manufacturing business. This in turn led to the founding of what became the Toyota Motor Corporation.
The town gained city status on March 1, 1951. The town changed its name to Toyota in 1959 and became the sister city of another automotive industry headquarters, Detroit, Michigan, one year later. Toyota-shi is also twinned with the County of Derbyshire, England.
On March 25, 2005, Expo 2005 opened with its main site being in Nagakute and additional activity in Seto and Toyota. The expo continued until September 25, 2005.
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