With 1938 National General Mobilization Act, economic activities throuhout Japan came under the control of the government and army. In order to continue with automobile manufacturing under such circumstances, Kiichiro and his team separated the Steel Department of the Toyoda Automatic Loom Works to establish Toyoda Steel Works, Ltd. (currently Aichi Steel Corporation) based on the 1940 Steel Industry Act, and separated the Machinery Division of Toyota Motor Co., Ltd. to establish Toyoda Machine Works Co., Ltd. (currently JTEKT Corporation) based on 1941 Working Machine Manufactu Act. Such reconstruction led to the creation of the Toyota Group.