Free «Honda Company» Essay Sample

Introduction and History

Company Honda was founded in 1946 by the Japanese engineer, inventor, and race driver Soichiro Honda and exists thanks to his its impudent, inventive and non-standard mentality and behavior.

As well as the majority of the Japanese companies, in 1945, the factory seriously suffered because of war and earthquake. Then Honda starts selling Tokai Seiki for 450 thousand yens to the future competitor - Toyota Company.

Soichiro Honda decides to seriously engage in the manufacture of mopeds after once he had attached the motor to the bicycle.

In a year after the war, he bases the company under the name «Institute of technical researches of Honda» (Honda Technical Research Institute). In 1947, company began manufacturing two-stroke A-type engine A-type in volume 50sm3. In 1948, the company was re-registered and named according to the spirit of the age - Honda Motor Company - and has started to develop and make motorcycles. Its first motorcycle called “Dream” and was equipped with the engine in volume of 98sm3; it was let out in 1949. Then Takeo Fujisawa has come to work in the company. He was a person considered to be the second founding father of the company. There was a division of duties between him and Honda; Honda was engaged in "know-how", Fujisawa – in corporate governance and sales.

In 1954, the actions Honda Motor start to be on sale at the Tokyo stock exchange. In the same year, started the production of Juno K-type scooters and their export to the USA. Thanks to technological breakthrough, Honda Team has an opportunity to participate in motorcycle sport; it takes part in the international motor-race Sao Paulo in Brazil and Isle of Man TT in Great Britain.

In 1955, the company became the leader in the release of motorcycles in Japan having destroyed a large quantity of competitors. Honda has taken part in the first Japanese race Motorcycle Endurance Road Race and has won in classes 350 and 500 cubic sm, having received a prize for a design. New models Benly JB, Dream SA, Dream SB-type have been produced.

In 1956, there was developed corporate principles which the company adheres to till now. The service department was opened and the annual guarantee on production has been installed. In 1957, the center of researches and workings was opened at factory Shirako. Honda Motor stock have got to the first part of the list at the Tokyo Stock Exchange. Honda Team has won first place in Mt. Asama Race in a class 350sm3.

In 1958, the model Super Cub was first manufactured, and in 1959, Honda became the largest company in the world in terms of manufacturing of motorcycles. The same year, ther was founded Company American Honda Motor in the USA.

In 1962, Honda created factory releasing its own industrial equipment that has redefined new value of Honda. This factory subsequently became a basis of company Honda Engineering Co., Ltd.

In 1971, Honda presented engine CVCC (Compound Vortex Controlled Combustion), the first one corresponding to the Certificate of Pure Air of 1975. The company also began to sell the car Life with with water cooling system of the the engine. The representation in Brazil has been established, and the manufacture of motorcycles in Mexico has begun.

In 1972, thanks to the release of model Civic, Honda has become recognizable as the manufacturer of compact inexpensive qualitative cars. In 1973, Soichiro Honda formally retired from a post of the president of the company, Takeo Fujisawa also retired after aspiring to test each new model personally. At that time, began the sale of Civic with engine CVCC. Technology CVCC was transferred from Isuzu Motors and Chrysler Corporation according to the contract signed with Honda Motor. The license agreement with Ford Motor concerning the same technology also was also signed.

In 1974, when oil crisis fell upon Japan, motorcar manufacturers decided to reduce volumes of output. Honda has arrived to the absolutely opposite decision - to double manufacture and reduce the prices. Unlike, for example, Toyota and Nissan which have received 40 percent decrease in sales, Honda has increased its sales by 76 percent. Soichiro Honda, in the same 1974, received honorable doctor's degree in Michigan.

In 1975, Civic won the first place in tests for profitability organized by the American Agency on protection of environment and Federal administration of power.

In 1976, Honda produces new model, Accord. The general release of Civic has surpassed one million copies.

Now, Honda is a dynamically developing company which produces cars and motorcycles, special equipment, and engines. Technological innovations which the company constantly develops and puts into operation, concern not only car’s navigating systems, but also building of non-polluting factories. The company conducts researches in many other spheres and participates in different kinds of automobile sports.

Honda in China

The Japanese motorcar manufacturer Honda Motor Co invests 46 billion yens (560 million dollars) in building of new factories on the territory of the People’s Republic of China.

As the Japanese company has informed that they will produce engines as well as cars. The building of factories should begin in the end of this year, and in 2014, the enterprises should start the conveyor.

In its message, Honda Motor also noticed that new factories will originally let out about 120 thousand motor vehicles a year; after some time, this figure will be increased to 240 thousand.

Honda Motor is the third largest manufacturer of cars in Japan and one of the largest Japanese exporters of cars. Though the corporation net profit for 9 months in 2011-2012 (have come to the end on December, 31st) has decreased on 71.4 % - to 139.89 billion yens (1.82 billion dollars), the company sales volume for the accounting period of 2011-2012 was reduced to 17.6 % and has made 5.54 billion yens (72.32 billion dollars).

It is connected with the consequences of the last year's acts of nature in Japan (earthquake, a tsunami, disaster on the atomic power station in Fukushima) and Thailand (flooding) which have struck the Japanese car industry.

Honda has lowered the predicted profit following the results of the current fiscal year on 95 billion yens (1.2 billion dollars), or 20 %, to 375 billion yens (4.7 billion dollars). Such a decrease is connected first of all with a demand collapse in China which has been caused by the dispute concerning an accessory of islands in the East China Sea. Speaking about China, in 2011, 17 % of all company’s sales has made its market second after the USA in terms of importance for Honda.

Now, the motorcar manufacturer expects to sell there 155 thousand cars less than was planned earlier. In September, the sale of Honda cars in China has decreased for 40.5 %.

The Chinese, historically disliking Japanese, have declared boycott of production of the country of a rising sun after the aggravation of territorial dispute in September. Tokyo and Beijing argue on an accessory of the SenkakuIslands in the East China Sea for a long time. However, last month, the conflict has become aggravated after the Japanese authorities have nationalized islands having paid 26 million dollars to their private owners – Japanese. The Japanese motorcar manufacturers have especially suffered from an active civic stand of ordinary Chinese: mass-media informed on attacks of the angered inhabitants of the People’s Republic of China on the fellow citizens owning the the Japanese car industry.

Honda in Japan

Only in 50 years, Honda has grown from the company with small factory into the large transnational corporation presented more than in 150 countries. During this time, despite the declaration of as much as possible independent development in various regions, coordination, resource management, and the technological information were carried out in Japan. The central research office of all network of Honda is also in Japan; it bears responsibility for carrying out of basic researches in such areas, for example, as engine and transmission characteristics. Regional research centers are already founded on different ways of application of the developed technologies according to the requirements of the local market.

In Japan, there are located six Honda’s factories. Manufacture of motorcycles is concentrated at factories Kumamoto and Hamamatsu; cars - at factories Saitama, Suzuka, Tochigi and Yokkaichi; power production - at factories Hamamatsu and Kumamoto. In terms of production, Japan also plays a dominant role; here, production is constantly improved. Then, the debugged technologies are transferred in other countries. However, because the activity of Honda Company in Japan is carried out more and more independently, Japanese divisions of the company concentrate in home market having more than 16 000 dealers.


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