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About Checkered Flag Honda & Honda History

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History of Honda Motor Co.


In September 24, 1948 the Honda Motor Co. was founded. Soichiro Honda took advantage of a gap in the Japanese market that was decimated by World War II, Japan was starved of money and fuel, but still in need of basic transport. Honda, utilizing his manufacturing facilities, attached an engine to a bicycle, creating a cheap and efficient transport.

The Honda piston manufacturing facilities were almost completely destroyed. Soichiro Honda created a new company with what he had left, giving it the name "Honda Giken Kōgyō Kabushiki Kaisha" which translates to "Honda Research Institute Co. Ltd." Despite its grandiose name, the first facility bearing that name was a simple wooden shack where Mr. Honda and associates would fit engines to bicycles. Interestingly, the official Japanese name for Honda Motor Co. Ltd. remains the same, in honor of Soichiro Honda's efforts. in 1958 the American Honda Co. was founded.

Honda began to produce a range of scooters and motorcycles and Soichiro Honda quickly recovered from the losses incurred during the war. By the late 1960s, Honda had conquered most world markets. The British were especially slow to respond to the Honda introduction of electric starters to motorcycles. By the 1970s, Honda was the largest producer of motorcycles in the world, a title it has never relinquished.

Honda began producing road cars in 1960, mostly intended for the Japanese market. Though participating in international motorsport (see Racing), Honda was having difficulty selling its automobiles in the United States. Built for Japanese buyers, Honda's small cars had failed to gain the interest of American buyers.

Honda finally established a foothold in the American market in 1972 with the introduction of the Civic-larger than their previous models, but still small compared to the typical American car-just as the 1970s energy crisis was impacting worldwide economies. New emissions laws in the US, requiring American car makers to affix expensive catalytic converters to exhaust systems, increased car prices. However, Honda's introduction of the 1975 Civic CVCC, CVCC being a variation on the stratified charge engine, allowed the Civic to pass emissions tests without a catalytic converter.

In 1976, the Accord was immediately popular because of its economy and fun-to-drive nature; Honda had found its niche in the United States. In 1982, Honda was the first Japanese car manufacturer to build car plants in the US, starting with an Accord plant in Marysville, Ohio. They now have four plants located in Ohio: 2 in Marysville (the Marysville Auto Plant and the Marysville Motorcycle Plant), Anna, and East Liberty. They also have plants in Lincoln, Alabama (Honda Manufacturing of Alabama), and Timmonsville, South Carolina, and have recently (2006) opened a new plant in Tallapoosa, Georgia. Honda also has an extensive after market parts operation located in Marysville, Ohio, and a Research and Development facility in Raymond, Ohio. Honda's North American and U.S. headquarters are located in Torrance, California. Honda's Canadian and many US-market Civics are manufactured in their plant in Alliston, Ontario since 1986. On June 27, 2006, Honda announced that another vehicle assembly facility will be opening in North America, this time in Greensburg, Indiana. Its completion is expected in 2008.

Honda was the first Japanese automaker to introduce a separate luxury line of vehicles. Created in 1986 and known as Acura, the line is made up of modified versions of Honda vehicles usually with more power and sportiness than their Honda counterparts.

In 1989 Honda launched their VTEC variable valve timing system in its production car engines, which gave improved efficiency and performance across a broader range of engine speeds. One of the first of its kind in passenger vehicles, it worked on the premise of tuning one engine to operate at two different 'settings' depending on load. Normal driving would use a "shorter" cam lobe that resulted in more efficient operation. A more aggressive, longer duration, cam engages when engine RPM reaches a set point resulting in more power during hard acceleration.

Honda Racing

In 1963, Honda entered Formula One as a constructor, competing for the first time in 1964 at the German Grand Prix with Ronnie Bucknum at the wheel. 1965 saw the addition of Richie Ginther to the team, who scored Honda's first point at the Belgian Grand Prix, and Honda's first win at the Mexican Grand Prix. 1967 saw their next win at the Italian Grand Prix with John Surtees as their driver. In 1968, Jo Schlesser was killed in a Honda RA302 at the French Grand Prix. This racing tragedy, coupled with their commercial difficulties selling automobiles in the United States, prompted Honda to withdraw from all international motorsport that year.

In the late 1980s and early 1990s, Honda powered cars won six consecutive Formula One Constructors Championships. WilliamsF1 won the crown in 1986 and 1987. Team McLaren won the title in 1988, 1989, 1990 and 1991.

In 2003, Honda became an engine supplier to the Indy Racing League. In 2004, Honda-powered cars overwhelmingly dominated IRL, winning 14 of 16 IRL events, including the Indianapolis 500, and claimed the IRL Manufacturers' Championship, Drivers' Championship and Rookie of the Year titles. In 2006, Honda became the sole engine supplier for the IRL, including the Indianapolis 500. In the 2006 Indianapolis 500, for the first time in Indianapolis 500 history, the race was run without a single engine problem!

Honda Strategy

During the 1960s, when it was a small manufacturer, Honda broke out of the Japanese motorcycle market and began exporting to the US. Taking Honda's story as an archetype of the smaller manufacturer entering a new market already occupied by highly dominant competitors, the story of their market entry, and their subsequent huge success in the US and around the world, has been the subject of some academic controversy. Competing explanations have been advanced to explain Honda's strategy and the reasons for their success.

The first of these explanations was put forward when, in 1975, Boston Consulting Group (BCG) was commissioned by the UK government to write a report explaining why and how the British motorcycle industry had been out-competed by its Japanese competitors. The report concluded that the Japanese firms, including Honda, had sought a very high scale of production (they had made a large number of motorbikes) in order to benefit from economies of scale and learning curve effects. It blamed the decline of the British motorcycle industry on the failure of British managers to invest enough in their businesses to profit from economies of scale and scope.

The second story is told in 1984 by Richard Pascale, who had interviewed the Honda executives responsible for the firm's entry into the US market. As opposed to the tightly focused strategy of low cost and high scale that BCG accredited to Honda, Pascale found that their entry into the US market was a story of "miscalculation, serendipity, and organizational learning" - in other words, Honda's success was due to the adaptability (and hard work) of its staff, rather than any long term strategy. For example, Honda's initial plan on entering the US was to compete in large motorcycles, around 300cc. It was only when the team found that the scooters they were using to get themselves around their US base of San Francisco attracted positive interest from consumers that they came up with the idea of selling the Supercub.

The most recent school of thought on Honda's strategy was put forward by Gary Hamel and C. K. Prahalad in 1989. Creating the concept of core competencies with Honda as an example, they argued that Honda's success was due to its focus on leadership in the technology of internal combustion engines. For example, the high power-to-weight ratio engines Honda produced for its racing bikes provided technology and expertise which was transferable into mopeds.

Honda's entry into the US motorcycle market during the 1960s is used as a case study for teaching introductory strategy at business schools worldwide.

Its first entrance into the pickup segment, the lightduty Ridgeline, won Truck of the Year, completing a "one-two" combination, as its redesigned Civic also won Car of the Year. Part of its warm reception from the industry stems from its innovation in offering all wheel independent suspension, the first for a pick up truck. With a unibody design that boasts 20x the rigidity of a traditional construction framework, it provides solid handling and a controlled car-like feel even while hauling a load.

Honda Initiative

Although a relatively small manufacturer in terms of vehicle sales, Honda is the largest engine maker in the world. Honda has a number of firsts in many categories, including first motorcycle equipped with an airbag, as well as the first pick-up truck with independent rear suspension (2006 Ridgeline).

The 2006 Ridgeline is one of the first Uni-Body trucks produced (after the early 1980s Volkswagen Rabbit pick-up).

Honda has also pioneered new technology in its HA-420 HondaJet that allows new levels of reduced drag, increased aerodynamics and fuel efficiency thus reducing operating costs.

Honda's robot ASIMO (see below) as an R&D project brings together expertise to create a robot that walks, dances and navigates steps.


*The brand history on this page is a collaboration of points found from various sources on the Internet.  Checkered Flag does not claim it to be accurate.  If you find anything to not be factual, we want to know so we can change it.  Please use our "Contact Us" form to inform us of a possible error.