History > Challenge > Establishing Honda of America Manufacturing (1980)


The Mission: Build an Even Better Accord!

  Construction of the HAM automobile plant began in December 1980. To prove that Honda was building a plant that truly would be rooted in the American community, Honda actively employed manufacturing equipment that was made or sold locally, and decided on a basic policy to manufacture cars using American-made raw materials such as sheet steel, plastic, and paint. This was a challenging task at the time, since given the differences in Japanese and American standards, there was a considerable risk of diminished quality. In fact, many believed that HAM would not be able to produce cars that were of the same quality as their Japanese-made counterparts. This was a critical point, for if any public perception were to arise that HAM-produced Accords were lacking in quality it would be hard to erase. There would be no excuse for mistakes involving quality control.

A system of mutual support was established with Saitama Factory’s Sayama Plant as the “mother plant” in Japan, so that both locations could ensure timely responses to all car-production requirements. Additionally, the R&D Center provided invaluable support in dealing with raw materials and parts specifications. To facilitate the successful launch of American operations, HAM’s Executive Vice President Hiroshi Hayano was to direct the start-up, while in Japan Saitama’s General Manager Takeru Mizoguchi led the support effort.

“I sent about 300 people, including the best experts and veteran associates, from Sayama to help out at HAM Mizoguchi said, recalling the intense period of preparation. Inspections of mass-production performance at the HAM plant went forward at a rapid pace, and whenever defective parts were found, their cause was corrected in collaboration with the associated parts manufacturer. The staff from Japan worked with unfamiliar American equipment, making technical improvements with the help of American manufacturers in order to achieve consistent quality in mass production.

Many associates who had gained experience in motorcycle production were in fact transferred to the new auto plant, demonstrating impressive leadership abilities on behalf of the newly hired associates.

HAM’s first Accord rolled off the production line on November 1, 1980, achieving the promised quality in Production. In time, the number of cars the plant was producing increased, making way for full-scale output. That occurred a year-and-a-half after start-up, via the shift to a double workshift system for the production of 600 cars daily. Later a second production line was established, becoming operational in April 1986. Eventually, HAM was on a schedule of 300,000 units per year, shipping cars overseas for sale in Japan and other countries around the world.

“Many people were worried about whether Honda could really produce good cars in the U.S.,” Nakagawa said. “So, it was helpful that we challenged the situation by creating a plant with a safe, cheerful, quality-oriented environment. Also, the many Japanese staff stationed in Ohio and those visiting from Japan did a wonderful job teaching our associates about Honda’s philosophy and technologies. I once heard that Mr. Kawashima said in Japan, ÅeOhio is the lifeline of Honda.Åf His words became our driving force, inspiring us to achieve our goals no matter how difficult they might have been.”

Kawashima recalled, “If we had failed in the American market, Honda would have lost its biggest market. That, of course, world have had very serious consequences. So, in that sense I believed that Ohio truly was Honda’s lifeline.”
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<< Gaining an Edge in the Global Competition  
<< Local Feasibility Study Begins Anew
<< The Eve of Honda’s American Expansion
<< Honda to Build a Motorcycle Plant in Ohio
<< The Honda Philosophy at Work in the U.S.
<< HAM’s Flagship Motorcycle
<< Setting the Stage for Car Production
<< The Mission: Build an Even Better Accord!
<< North American Manufacturing Expands
<< American Development and Manufacturing Operations Grow


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