Honda found itself surrounded by an atmosphere of upheaval in the 1970s, both in Japan and abroad.
Yet, that situation had actually arisen much earlier-in the mid-1960s when, along with advancing industrialization and motorization, air pollution had become a serious social issue. The Clean Air Act of 1970 passed by the U.S. Congress resulted in even stricter regulations regarding tailpipe emissions. Moreover, the Clean Air Act had influenced the Japanese government to tighten its own policies.
A view of the entire HAM plant at Marysville, Ohio, in the American Midwest. The building at the front is a motorcycle plant, which began operating in September 1979. The auto plant is in the rear.
Accordingly, auto manufacturers had to comply with such demands, and with no time to waste. Company President Soichiro Honda put out a call to action on behalf of researchers at the R&D Center, saying, «This allows latecomers like us to line up at the same starting line as our rivals.» His encouragement extended to all Honda associates. «Now is the chance,» he said, emphasizing his view of the matter in several issues of the Honda Company Newsletter.
In August 1971, the U.S. government announced its policy in protection of the dollar. This was the result of a shift in the yen toward the floating-exchange-rate system, which had prompted the actual value of the yen to rise, bringing about a crash in the Japanese stock market.
At Honda, where exports to the U.S. and other countries made up 60 percent of total revenues, the impact was tremendous.
«We must use new ideas to change our way of doing business,» stated Executive Vice-President Takeo Fujisawa in the September 7, 1971, issue of Nihon Keizai Shimbun. «Otherwise, we’ll continue to feel the impact of outside forces. In fact, we’re already having difficulties with our conventional method of rapidly increasing the number of exports by employing technologies, mass-producing and streamlining. We have to come up with a newer, more suitable method.»
The New Honda Plan (NHP), proposed by the senior managing director Kiyoshi Kawashima, was implemented in April 1972 as a company-wide effort to build a corporate structure that would allow rapid response to changing situations in a flexible manner. The «Global Production Strategy,» was one such project promoted to all corporate divisions.
Kiyoshi Kawashima assumed the post of company president in October 1973, effectively replacing Honda founders Soichiro Honda and Takeo Fujisawa. Immediately afterward, another incident took place that rocked the global economy to its very foundation: the first oil crisis, triggered by the war in the Middle East. However, it was more than a direct hit to business. It also gave rise to serious questions concerning the entire global population. The oil crisis was an especially heavy blow to the Japanese economy, which, despite almost 100 percent dependence on foreign petroleum, had been riding a wave of high economic growth. The oil crisis, however, served as an opportunity for Honda to establish the idea of decentralizing its manufacturing bases and becoming even more global. Indeed, it led the company to give serious consideration to the creation of a system that could offer a steady supply of products without being affected by changes in global dynamics.
At the same time, Honda had a long-standing policy to build products in the market where they are sold. Through this policy, Honda also can contribute to the local community through employment and paying taxes. The policy is based on Honda’s corporate philosophy of «The Tree Joys» — the «joy of buying», the «joy of selling» and the «joy of creating.» To realize this policy, the NHP Global Production Strategy Project team began analyzing the possibility of local motorcycle production in the U.S. — the biggest single Honda market in the world.
Therefore, a feasibility study was conducted in the fall of 1974, at the request of Kiyoshi Kawashima. There were feasibility study tours of American manufacturing plants, and cost comparisons between the importation of completed cars and local manufacturing. However, it was a big question whether such products manufactured in the U.S. would possess the same quality as those built in Japan, as was the issue of profitability.
«Okay, I understand,» said Kiyoshi Kawashima. «Let me hold onto this project for the time being. But keep the research data handy so that it can be used whenever the need arises.» He then decided to forego the manufacture of motorcycles in the U.S., ending the NHP’s study. However, he could not seem to forget the idea of establishing a manufacturing base in the U.S. that would allow motorcycles to be made locally.
Believing that one-way exports would not last indefinitely and that thinking in terms of profit only would never allow him to make up his mind, Kawashima decided he should weigh such a decision with great care.
Local Feasibility Study Begins Anew
Export of the Civic began to the U.S. and the rest of the world in1973, having debuted in Japan the previous year. That model was equipped with the CVCC engine, the first powerplant developed by an auto manufacturer that passed the strict emissions standards of the U.S. Clean Air Act. Accordingly, the Civic was a hit with the public, boasting great fuel efficiency and considerably cleaner exhaust than any car before it. In Japan, the car won the Car of the Year Award three straight years, beginning in 1973, while in the U.S., it ranked first in a fuel economy test conducted by the EPA (Environmental Protection Agency) in 1974, winning praise around the world. There was indeed a great demand for the Civic as a small yet eminently practical car for the domestic and foreign markets, particularly with its arrival on the heels of the first oil crisis.
It was not easy to satisfy demand and, as a result, both the Suzuka and Saitama Factories had to manufacture Civics at full capacity every day. The Board of Directors even discussed the possibility of expanding Suzuka with a second automobile production line in order to provide for another surge in Civic sales. Yet, Kiyoshi Kawashima was not quite ready for such a thing.
«It’s true that the Civic is selling well,» he said. «However, it would be virtually impossible for Honda, given the current conditions, to immediately enhance its domestic sales strength to meet the increased production requirement. Moreover, we’d have to consider the cost that would accompany an expansion in the production line. But Honda’s auto business is finally bearing fruit, thanks to the Civic. And since it is a budding business, we shouldn’t assume we’re ready to charge into competition with the other Japanese manufacturers, either in terms of sales or capital. So, rather than compete domestically to no avail, I would like to use this opportunity to take a chance in America, the world’s largest market. I would like to build a motorcycle factory and eventually an automobile factory in the United States, where no [Japanese auto manufacturer] has yet done so.»
The proposed plan to add a second line for car production at Suzuka Factory was thus put on hold, at the insistence of Kiyoshi Kawashima. Instead, the company’s decision-makers began taking another look at a possible U.S. manufacturing base. «Recent study has concluded that a Honda factory in the U.S. would have a hard time making a profit through the manufacture of motorcycles alone,» Kiyoshi Kawashima said. «However, now that the Civic has begun to sell in America, I wonder if we might have a possibility there.»
It was at this time that Masami Suzuki, then the managing director, was instructed to conduct another feasibility study. However, concurrently, he was busy supervising the overseas manufacture of automobiles and unit sales of CVCC engines. Having licensed CVCC technologies, Suzuki had established a number of solid contacts among automakers in Japan and elsewhere.
«Let’s find out again what we can do in the States,» said Suzuki in November 1975. Immediately, he began organizing a study group with which to explore the concept of car production in America.
The Eve of Honda’s American Expansion
Honda’s impending full-scale exportation of Civic cars and CVCC engines to the U.S. was to occur at a time in which the American auto industry was suffering the effects of the first oil crisis, which had made consumers wary of the cumbersome «gas guzzlers» being offered by Detroit. In fact, the U.S. makers still had no consensus concerning a technology that would meet the requirements of the Clean Air Act. It had not yet developed reasonably priced economy cars, leaving that segment of the market open to European and Japanese models, which gradually began populating the country. In the meantime, the American factories began trimming back their operations, laying off increased numbers of employees.
The American expansion of Civic sales would therefore necessitate a larger number of dealerships. Increasing the number of imported cars — Civics, in particular — would require countermeasures against the future import regulations that would likely be imposed.
Thus, Honda President Kiyoshi Kawashima’s goal — the manufacture of automobiles in the U.S. — agreed with the realities of an entire economy, society, and auto industry. He knew the key to Honda’s continued growth was to pursue the potential of local production in America.
Suzuki left Japan in January 1976, flying to the U.S. in order to accomplish his mission. Following an exchange of opinions with Hirofumi Nakamura, the general manager of American Honda Motor Co., he held talks with American managers, seeking their comments regarding the manufacture of automobiles stateside. Based on their own rather unpleasant experiences with the intrinsic quality problems of contemporary American-made cars, though, the U.S. managers did not agree that it would be a good idea for Honda to do so. Actually, they all said that «rather than think of doing something so difficult, we should send more and more cars from Japan while the Civic is riding high in sales.» Accordingly, the conclusion drawn from the discussion was to study the feasibility of U.S. manufacturing, with emphasis on the achievement of consistently high quality levels:
1) What type of management structure would enable the production of quality cars?
2) What type of location should we choose in order to secure an environment in which cars of outstanding quality could be produced?
The spring of 1976 found Suzuki in the midst of sales negotiations with Ford regarding CVCC engine units. Lee Iacocca, president of Ford Motor Company, had much to say in praise of the Accord, which Honda had just begun selling in the U.S., albeit in limited numbers.
«I drive [an Accord] myself on the commute to work,» Iacocca said, expressing a desire for those engines to be supplied to Ford. «You have my congratulations for making such a wonderful car.»
The negotiator from Ford also assured Suzuki that if Ford were to come up with a manufacturing plan for Accords, then annual sales of 600,000 units, including station wagons, could easily be achieved.
Suzuki in turn said he was studying the possible manufacture of cars in the U.S., and asked for permission to tour Ford’s main plants. Iacocca promptly introduced him to Ford’s vice-president in charge of production, and that same day, they had a discussion. The vice president then referred Suzuki to the most highly rated facility among the many that Ford operated. Significantly, that evaluation was based mostly on the quality of its employees. Therefore, following that meeting he visited the plant, in which the methods of communication between the management and production crew were well established. Suzuki was impressed, but he also knew the plant would present certain limitations in terms of knockdown production.
The knockdown system was in fact a prominent part of American auto manufacturing, in which the main car assemblies were transported via railroad from Detroit, Michigan. The manufacturing systems made use of multiple-variety, small-volume production, employing buildings and facilities that had long since reached their maximum depreciation.
At the same time, Honda Engineering (EG) was becoming increasingly confident in its manufacturing technologies, which featured welding machines and robots for reduced presswork and a dramatic integration of welding processes. Through this system, beginning with a stamping process that boasted a technology for the rapid changeover of dies and cutting heads, Honda was already at the point at which real cost-performance could be achieved using a sensible scale of production.
Suzuki’s tour of the Ford plant therefore facilitated a clearer perspective of what hardware should be brought to the U.S., i. e., the types of cars that should be made and what Honda should do in terms of production. In fact, he was starting to think that Honda was competent enough to manufacture cars in America, the fabled Land of the Automobile.
In his travels across the U.S., Suzuki was keenly aware of how those involved in service industries, including hotels and restaurants, could offer such sophistication of hospitality. He could not dismiss the fact that America’s true greatness was to be found in the friendliness and cheerfulness of its people, and in the inherent pleasures of that environment.
Therefore, he knew it was not a matter of people intentionally producing bad cars. Rather, it was because the management systems deprived workers of their natural motivation to excel. The auto factories themselves were no exception.
Suzuki also became aware of the differences in environments and lifestyles he had observed among the different regions of the country. He knew he had to consider such factors when choosing a site for plant construction.
Honda has always been committed to producing high-quality vehicles that are both affordable and environmentally friendly.
The Accord and Civic are two of the most popular cars on the road today, and both models are known for their fuel efficiency and reliability. But is Honda a foreign car? is it American-made?
While Honda is headquartered in Japan, the company has manufacturing facilities and sales operations throughout North America. So, yes, Honda cars are made in America. The company has several factories across the United States.
In the United States, Honda operates 12 major manufacturing facilities which produce a wide range of products for both the U.S. and global markets. So while Honda may have its origins in Japan, the company is firmly rooted in North America and produces a wide range of cars.
What You May Need to Know About Honda
Honda is a Japanese multinational corporation that produces automobiles, motorcycles, and power equipment. They are one of the world’s largest manufacturers of internal combustion engines measured by volume.
There are many different Honda models to choose from, and each one offers something unique. Whether you’re interested in a small hatchback or a spacious SUV, Honda has something to meet your needs.
Do Honda Cars Have to be Serviced in America?
No, Honda cars do not have to be serviced in America. Although Honda is a Japanese company, it has production plants all over the world, including in America. This means that American Honda owners can take their cars to any of these plants for service.
Additionally, many independent Honda service centers are located all over the world.
Do Hondas Have Problems With Rust?
Honda cars are not known for having problems with rust. They generally hold up very well in this regard. Of course, how well a car performs in different climates depends on the specific model and its features.
For instance, the Honda Accord is often seen as a good car for colder climates because it has features that help keep the engine warm. However, even cars like the Honda Civic can do well in colder climates if they have the right features.
So, while Hondas may not be specifically marketed as rust-resistant cars, they generally perform quite well in this regard.
Are Honda Cars Reliable?
There are so many factors to consider when it comes to the reliability of any car, but especially a Honda. These factors include:
Úspora paliva
Honda cars have always been known for their great fuel economy. This is a huge draw for many buyers, especially in today’s economy. Even the most powerful Honda models get great gas mileage, so you can save money on your commute and your overall car care costs.
Opravy
Honda cars are also known for being fairly reliable, meaning you’re less likely to have to take them in for expensive repairs. This is especially important if you don’t have a lot of money to spare or if you rely on your car to get to work.
Výkon motoru
Honda engines are some of the most powerful and efficient in the industry.
For example, the Honda Accord has an engine that produces up to 278 horsepower and gets up to 30 mpg on the highway while the Honda Civic has an engine that produces up to 174 horsepower and gets up to 38 mpg on the highway.
Nejčastější dotazy
Is my Honda a V4 or V6?
For a Honda Civic, the engine is often a four-cylinder. The two exceptions are the Honda Accord, which comes with either a four- or six-cylinder engine, and the Honda Prelude, which had an optional V12 engine.
The Honda CR-V has only been available with a four-cylinder engine. The Honda Pilot came standard with a six-cylinder engine but was later updated to only have a four-cylinder.
What is Honda’s towing power?
The towing power depends on the model of the Honda car you have. The towing capacity of most Honda cars is about 1500 pounds, but some can tow up to 3000 pounds.
What is Honda’s weight capacity?
The weight capacity of vehicles varies. You should consult your owner’s manual to find out the weight capacity of your specific Honda car. Generally, most Honda cars can carry around 400-500 pounds in the trunk.
What is the MPG of a Honda car?
This also varies depending on the model of the Honda car you have. You can find this information in your owner’s manual or on Honda’s website. However, as a general rule, most Honda cars get good gas mileage, especially compared to other cars in their class.
What’s the difference between a Honda and a Toyota?
There are many differences between Hondas and Toyotas, but some of the key ones include design, fuel economy, driving experience, and price. Hondas tend to be sportier and more stylish than Toyotas, while Toyotas boast better fuel economy.
The driving experience is also a key difference, with Toyotas often feeling more like appliances and Hondas providing a more engaging experience. Finally, Honda cars are typically more expensive than Toyotas.
Do Hondas come in different sizes?
Yes, Honda offers a variety of car sizes to choose from, including subcompact, compact, midsize, and full size. They also make SUVs and vans.
Is Honda the largest manufacturer of internal combustion engines in the world?
Honda is the largest manufacturer of internal combustion engines in the world. Honda has a rich history in racing and performance vehicles. Honda also manufactures generators, lawnmowers, and other power equipment.
Is Honda a foreign company?
Honda is based in Japan, but manufactures cars all over the world, including in America. Therefore, Honda can be considered both a foreign and an American company.
What are some of the most popular Honda models?
Some of the most popular Honda models include the Accord, Civic, and CR-V. All of these models are manufactured in America.
Are any of Honda’s cars electric?
Yes, the Honda Clarity Plug-In Hybrid and all-electric Honda Clarity are both available. The Clarity Plug-In Hybrid has an EPA fuel economy rating of 47 mpg in city driving and 46 mpg on the highway.
The all-electric Honda Clarity has an EPA fuel economy rating of 122 mpg combined (miles per gallon equivalent). It has a range of up to 340 miles on a single charge.
What is the price difference between American-made Hondas and foreign-made Hondas?
Typically, Hondas manufactured in America are less expensive than those manufactured in other countries. For example, you can find a 2017 Honda Accord LX for $23,570. The same car manufactured in Japan would cost about $27,000.
Are there any American-made Honda SUVs?
Yes! The Honda Pilot and the Honda CR-V are both made in America. The Honda Pilot has an EPA fuel economy rating of 18 mpg city and 26 on the highway. The CR-V has an EPA fuel economy rating of 28 mpg city and 34 on the highway.
What kind of warranties comes with a Honda car?
Honda offers a three-year/36,000-mile limited warranty on new vehicles and a five-year/60,000-mile limited warranty on certified pre-owned vehicles. These warranties include powertrain coverage and roadside assistance.
Are any Honda cars hybrids?
The Honda Accord and Civic are both available as hybrids. They are both made in America.
Do any Honda cars run on natural gas?
The Honda Civic GX is the only car on the American market that runs exclusively on natural gas. It’s a bit of an oddity these days, as there are very few cars that run on anything other than gasoline or electric power.
Do any Honda cars plug in?
Honda has a few different types of cars and SUVs. Some are plug-in hybrids, like the Honda Clarity Plug-In which can go 47 miles on electric power alone.
The Honda Accord Hybrid and Honda Insight both have hybrid engines that combine a gasoline engine with an electric motor to improve fuel economy. Other Honda models, like the CR-V and Pilot, are available with a traditional gas engine or as a hybrid.
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Honda is considered a foreign carmaker because it’s based in Japan. However, many of the cars that Honda produces are assembled in America, which makes them American-made. About 80% of the parts in a Honda car are sourced from America.
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