Establishing American Honda Motor Co. / 1959

An Unknown Market - a New Challenge

Establishing American Honda Motor Co. / 1959

Achieving a Breakthrough in America

"We have now established ourselves on solid ground domestically," said Senior Managing Director Takeo Fujisawa. "Eventually, we'll have to aim to be number one worldwide. So, with that in mind, why don't you go check out the overseas market?"

Achieving a Breakthrough in America

American Honda shortly after its establishment

The order had thus been given, and Kihachiro Kawashima, then manager of the Sales Section at headquarters, began his preparations to study the Southeast Asian market. It was a logical step for the company to take, since it had within a mere seven years established itself as a top manufacturer in the Japanese motorcycle industry. And now the expansion of exports to overseas markets was a very real possibility, reflecting a shift in Honda's policy from domestic fulfillment to a more international profile, featuring such products as the Dream (in 250 cc and 350 cc versions) and Benly (125 cc).

Honda soon began exporting sample motorcycles, about which Fujisawa was emphatic. "Instead of relying on a trading company," he said, "we should first take a look at the overseas market for ourselves. Then we'll find the best way to do business there."

Honda conducted market surveys in Europe and Southeast Asia from the end of 1956 to early the next year, with the former being covered by Soichiro Honda and Fujisawa and the latter taken by Kihachiro Kawashima.

In Southeast Asia motorcycles and mopeds imported from Europe were making their first appearances in the cities and towns, signaling the emergence of a popular new means of transportation that would soon rival the bicycle. In fact, as the region's economy grew, motorcycles were expected to outstrip bicycles.

Kawashima conducted a survey that lasted for more than three weeks, after which he returned to Japan and reported to Fujisawa that the Southeast Asian market was indeed promising. In return, Fujisawa told Kawashima, "Now, go off to America and check it out," ordering him to conduct a similar survey in the U.S. The country that Kawashima saw was truly the Land of the Automobile. After all, cars were an absolute necessity amid the vast expanses of rural territory, which had for years lacked a viable commuter network of railroads. And motorcycles were seen merely as adjuncts to cars, like toys one could use for leisure or, if one was daring enough, racing.

"I had always thought that motorcycles provided a means of transportation with which one earned a livelihood," Kawashima recalled. "Sure, they doubled as toys from time to time, but mainly they were used for everyday necessities. So, in my view America didn't come across as a country that had really accepted the motorcycle."

Upon his return from the U.S., Kawashima made a proposal to Fujisawa: "I believe it would be easier to begin with the Southeast Asian market than America."

Fujisawa considered the suggestion for a moment, then turned and gave a firm reply. "On second thought," he said, "let's do America. After all, America is the stronghold of capitalism, and the center of the world's economy. To succeed in the U.S. is to succeed worldwide. On the other hand, if a product doesn't become a hit in America, it'll never be a hit internationally.

"To take up the challenge of the American market may be the most difficult thing to do," Fujisawa concluded, "but it's a critical step in expanding the export of our products."

The Challenging Spirit of Honda

1990 - 1999
  1. The Birth of Twin Ring Motegi / 1997The Birth of Twin Ring Motegi / 1997
  2. Entry to Champ Car Racing / 1994Entry to Champ Car Racing / 1994
  3. Odyssey / 1994Odyssey / 1994
  4. Establishment of Honda Taiyo, Kibo-no-Sato Honda and Honda R&D Taiyo / 1992Establishment of Honda Taiyo, Kibo-no-Sato Honda and Honda R&D Taiyo / 1992
  5. Hosting Hosting "Orei-no-kai" / 1991
  6. The NSX / 1990The NSX / 1990
1980 - 1989
  1. The VTEC Engine / 1989The VTEC Engine / 1989
  2. Honda EV Plus: The Dream of an Electric Vehicle / 1988Honda EV Plus: The Dream of an Electric Vehicle / 1988
  3. An Automated Line for Painting and Coating / 1988An Automated Line for Painting and Coating / 1988
  4. Four-Wheel Steering System (4WS) / 1987Four-Wheel Steering System (4WS) / 1987
  5. The Airbag System / 1987The Airbag System / 1987
  6. The ZE Engine (GX110 / 140 / 240 / 270 / 340 Series) / 1983The ZE Engine (GX110 / 140 / 240 / 270 / 340 Series) / 1983
  7. Formula One Entry / 1983Formula One Entry / 1983
  8. Development of Honda's Franz System Car / 1982Development of Honda's Franz System Car / 1982
  9. The World's Smallest Welding Line / 1982The World's Smallest Welding Line / 1982
  10. Transfer Lines for Modular Components / 1981Transfer Lines for Modular Components / 1981
  11. The Car Navigation System / 1981The Car Navigation System / 1981
  12. City / 1981City / 1981
  13. The F200 The F200 "Komame" Mini-Tiller / 1980
  14. Establishing Honda of America Manufacturing / 1980Establishing Honda of America Manufacturing / 1980
1970 - 1979
  1. The Oval Piston Engine / 1979The Oval Piston Engine / 1979
  2. Returning to the World Motorcycle Grand Prix / 1979Returning to the World Motorcycle Grand Prix / 1979
  3. The HR21 Lawn Mower / 1978The HR21 Lawn Mower / 1978
  4. Creating Hometown Forests / 1977Creating Hometown Forests / 1977
  5. The ME Engine (G100 / 150 / 200 / 300 / 400 Series) / 1977The ME Engine (G100 / 150 / 200 / 300 / 400 Series) / 1977
  6. Introducing the Accord / 1976Introducing the Accord / 1976
  7. CG125 / 1975CG125 / 1975
  8. Establishment of Honda Engineering / 1974Establishment of Honda Engineering / 1974
  9. Company Leaders Honda and Fujisawa Retire; Kawashima Assumes Presidency / 1973Company Leaders Honda and Fujisawa Retire; Kawashima Assumes Presidency / 1973
  10. Announcing the Civic / 1972Announcing the Civic / 1972
  11. Introducing the CVCC / 1972Introducing the CVCC / 1972
  12. Holding All Honda Idea Contests / 1970Holding All Honda Idea Contests / 1970
  13. Launching the Office of Safe Driving Promotional Operations / 1970Launching the Office of Safe Driving Promotional Operations / 1970
1960 - 1969
  1. The Dream CB750 FOUR / 1969The Dream CB750 FOUR / 1969
  2. Launching the Honda 1300 / 1968Launching the Honda 1300 / 1968
  3. The Hondamatic Transmission / 1968The Hondamatic Transmission / 1968
  4. Entering the Auto Market at Last / 1966Entering the Auto Market at Last / 1966
  5. The E300 Portable Generator / 1965The E300 Portable Generator / 1965
  6. Formula One Entry / 1964Formula One Entry / 1964
  7. Kyoto: Celebrating the Company's 15th Anniversary / 1963Kyoto: Celebrating the Company's 15th Anniversary / 1963
  8. Establishing Belgium Honda / 1963Establishing Belgium Honda / 1963
  9. Launching the S360 and T360 / 1962Launching the S360 and T360 / 1962
  10. Employing the Employing the "My Record" Project and Expert Certification / 1960
  11. The R&D Center Goes Independent / 1960The R&D Center Goes Independent / 1960
1950 - 1959
  1. Establishing American Honda Motor Co. / 1959Establishing American Honda Motor Co. / 1959

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