Honda Motor Company
is Japan’s third largest automaker, best known as the manufacturer of the
popular Civic and Accord models. Honda also manufactures a complete line
of motorcycles, lawnmowers, marine motors, and other motorized products.
Repair Shop Origins
Honda began with the
entrepreneurial ambitions of Soichiro Honda (1906-1991). The son of a
blacksmith, Honda shunned formal education in favor of hands-on training.
As a teenager he worked in a repair shop, and founded his own
business—another repair shop—at the age of twenty-two. He eventually
transformed his fledgling enterprise into a piston manufacturing
operation.
Honda was always an
anti-establishment man, especially for a Japanese. Like most Japanese
companies, Honda was forced to manufacture for the military government
during World War II. In later years he stated that the experience of
government contracts manufacturing taught him about the inefficiencies of
central planning—even within the context of a capitalist economy.
Throughout his life, Honda expressed disdain for the zaibatsu
財閥
(financial cliques) and gakubatsu
学閥
(academic cliques) that have long dominated Japanese industrial circles.
Honda in the Postwar Years
After the war, Honda
Motor Company suffered from the same shortages of capital and raw
materials that plagued the entire Japanese economy. The company’s founder
was known for resorting to any means necessary in order to acquire
funding. After pawning his wife’s jewelry and many of his personal
possessions, Honda sent letters to thousands of potential lenders asking
for loans to revitalize his business. These extreme methods enabled the
company to survive the postwar crisis.
The postwar
incarnation of Honda Motor Company gained momentum when Honda got the idea
of attaching a small motor to a bicycle. The idea made sense in Japan,
where there were still severe fuel shortages. After some tinkering, he
developed a mass production model of the motorized bike—the 146cc “Dream.”
The bikes sold well in Japan, and also found vast export markets in Europe and America. Honda became the largest motorcycle manufacturer in
Japan by the mid-1960s, shortly after the
company’s chief rival, Tohatsu, went bankrupt in 1964.
The Transition to Automobile Manufacturing
The Japanese
government actively discouraged Honda from building automobiles. The
country already had two major automakers—Nissan
and Toyota—and government planners wanted resources for car
manufacturing allocated to these two giants. Soichiro Honda persisted,
though. Honda Motor Company’s first model, the Civic, rolled off the
assembly lines in 1972. The ultra-fuel-efficient vehicle arrived just in
time for the world oil crisis of 1973.
It has been more than
twenty years since Soichiro Honda was last involved in the daily
operations of the company that bears his name. (He retired in 1979.)
Nevertheless, his legacy continues, and Honda’s corporate culture is
distinctive among Japanese automakers. A graduate of one of Japan’s top
universities would likely prefer a job at Toyota, which is regarded as the
elitist haven of the automotive world. Honda Motor Company, by contrast,
retains its reputation as a hands-on, “working man’s” company.