HONDA'S ENTRY INTO THE WORLDWIDE AUTOMOBILE INDUSTRY

The history of Honda Motor Company's commercial success in the international automobile market is described, beginning with its growth to international reputation with motorcycles. Honda's success in the automobile market resulted from development of the CVCC engine, a technically innovative product that sought advances in pollution control as well as fuel efficiency and practical transportation. The CVCC was developed by adapting, on the basis of accumulated technology, the internal combustion engine from small motorcycle engines to large automobile engines. The engine developed in an atmosphere in which employees were allowed to use their individual creativeness in pursuit of a common objective. The special feature of Honda's business ideology was a human "using-to-capacity" principle combined with a merit rating system. For its marketing system, Honda sold cars to special contract sales stores through company branch stores. Although there were no sales quotas, each dealer had to take full responsibility for payment of cars ordered. So that samll dealers could concentrate on sales activity only, Honda established a nationwide technical service network for inspection, maintenance, and repair. The CVCC paved the way for implementation of strict emission control standards in Japan. Future emphasis is urged on the social aspects of the automobile, including evaluation of transport efficiency, contribution to the gross national product, consumption of oil and energy, and the societal cost.

  • Supplemental Notes:
    • Also published in HS-028 918, "Government, Technology, and the Future of the Automobile," New York, 1980 p 305-13. Presented at Harvard Business School Symposium on Government, Technology, and the Automotive Future, Boston, 19-20 October 1978.
  • Corporate Authors:

    McGraw-Hill, Incorporated

    330 West 42nd Street
    New York, NY  United States  10036
  • Authors:
    • Shimokawa, K
  • Publication Date: 1980

Media Info

  • Features: References;
  • Pagination: 9 p.

Subject/Index Terms

Filing Info

  • Accession Number: 00393046
  • Record Type: Publication
  • Source Agency: National Highway Traffic Safety Administration
  • Report/Paper Numbers: HS-028 936
  • Files: HSL, USDOT
  • Created Date: Feb 28 1985 12:00AM