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?"

Photo

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

A System that Fosters Expertise
  1. A System that Fosters ExpertiseA System that Fosters Expertise
  2. The R&D Center Goes Independent / 1960The R&D Center Goes Independent / 1960
  3. Employing the "My Record" Project and Expert Certification  / 1960Employing the "My Record" Project and Expert Certification / 1960
A Dream Come True: Car Builder for the World
  1. A Dream Come True: Car Builder for the WorldA Dream Come True: Car Builder for the World
  2. Launching the S360 and T360 / 1962Launching the S360 and T360 / 1962
  3. Entering the Auto Market at Last / 1966Entering the Auto Market at Last / 1966
  4. Introducing N360 / 1967Introducing N360 / 1967
  5. Launching the Honda 1300 / 1968Launching the Honda 1300 / 1968
  6. Introducing the CVCC / 1972Introducing the CVCC / 1972
  7. Announcing the Civic / 1972Announcing the Civic / 1972
  8. Introducing the Accord / 1976Introducing the Accord / 1976
Marketing Globally, Producing Lacally
  1. Marketing Globally, Producing LocallyMarketing Globally, Producing Locally
  2. Establishing American Honda Motor Co. / 1959Establishing American Honda Motor Co. / 1959
  3. Establishing Belgium Honda / 1963Establishing Belgium Honda / 1963
  4. Establishing Honda of America Manufacturing / 1980Establishing Honda of America Manufacturing / 1980
A Refreshing New Development
  1. A Refreshing New DevelopmentA Refreshing New Development
Products Emerging From Technology and Innovation
  1. Products Emerging From Technology and InnovationProducts Emerging From Technology and Innovation
  2. The Oval Piston Engine / 1979The Oval Piston Engine / 1979
  3. The Hondamatic Transmission / 1968The Hondamatic Transmission / 1968
  4. The Car Navigation System / 1981The Car Navigation System / 1981
  5. The Airbag System / 1987The Airbag System / 1987
  6. Four-Wheel Steering System (4WS) / 1987Four-Wheel Steering System (4WS) / 1987
  7. The VTEC Engine / 1989The VTEC Engine / 1989
  8. The ME Engine (G100 / 150 / 200 / 300 / 400 Series) / 1977The ME Engine (G100 / 150 / 200 / 300 / 400 Series) / 1977
  9. The ZE Engine (GX110 / 140 / 240 / 270 / 340 Series) / 1983The ZE Engine (GX110 / 140 / 240 / 270 / 340 Series) / 1983
  10. The Dream CB750 FOUR / 1969The Dream CB750 FOUR / 1969
  11. CG125 / 1975CG125 / 1975
  12. Road Pal / 1976Road Pal / 1976
  13. City / 1981City / 1981
  14. The NSX / 1990The NSX / 1990
  15. Odyssey / 1994Odyssey / 1994
  16. Honda EV Plus: The Dream of an Electric Vehicle / 1988Honda EV Plus: The Dream of an Electric Vehicle / 1988
  17. The E300 Portable Generator / 1965The E300 Portable Generator / 1965
  18. The HR21 Lawn Mower / 1978The HR21 Lawn Mower / 1978
  19. The F200 "Komame" Mini-Tiller / 1980The F200 "Komame" Mini-Tiller / 1980
Production Technology: The Essence of Creative Manufacturing
  1. Production Technology: The Essence of Creative ManufaturingProduction Technology: The Essence of Creative Manufaturing
  2. Establishment of Honda Engineering / 1974Establishment of Honda Engineering / 1974
  3. The World's Smallest Welding Line / 1982The World's Smallest Welding Line / 1982
  4. Transfer Lines for Modular Components / 1981Transfer Lines for Modular Components / 1981
  5. An Automated Line for Painting and Coating / 1988An Automated Line for Painting and Coating / 1988
A Neverending Passion for Racing
  1. A Neverending Passion for RacingA Neverending Passion for Racing
  2. Completion of Suzuka Circuit / 1962Completion of Suzuka Circuit / 1962
  3. Returning to the World Motorcycle Grand Prix / 1979Returning to the World Motorcycle Grand Prix / 1979
  4. Formula One Entry: The Initial Phase / 1964Formula One Entry: The Initial Phase / 1964
  5. Formula One Entry: The Second Phase / 1983Formula One Entry: The Second Phase / 1983
  6. Entry to Champ Car Racing / 1994Entry to Champ Car Racing / 1994
  7. The Birth of Twin Ring Motegi / 1997The Birth of Twin Ring Motegi / 1997
Creativity - The Way to Work Harder, Play Harder
  1. Creativity – The Way to Work Harder, Play Harder Creativity – The Way to Work Harder, Play Harder
  2. Holding All Honda Idea Contests / 1970Holding All Honda Idea Contests / 1970
People and Society Coexisting in Harmony with Nature
  1. People and Society Coexisting in Harmony with NaturePeople and Society Coexisting in Harmony with Nature
  2. 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
  3. Creating Hometown Forests / 1977Creating Hometown Forests / 1977
  4. Hosting "Orei-no-kai" / 1991Hosting "Orei-no-kai" / 1991

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