Honda motor

Takeo's Influence

Fujisawa, born in Tokyo in 1910, was deeply influenced by his father and Soseki Natsume, learning the values of equality and empathy. Despite failing to enter Tokyo Higher Normal School due to his novel reading habit, he found menial work during the depression. His ambition led him to Mitsuwa Shokai, a steel merchant, where he quickly advanced and took charge during the China war, significantly increasing the company's profits through steel demand and later, manufacturing with the Japan Machine and Tool Research Institute. Despite his requests for higher wages for his workers being denied, Fujisawa's determination for independence grew. Eventually, he gained autonomy, rewarding his employees well and ensuring the company's success. In 1945, to escape Allied bombings, he relocated his company to Fukushima, strategically purchasing a forest for lumber, foreseeing Tokyo's post-war reconstruction needs.

Following the war, Honda embarked on an entrepreneurial journey by acquiring a pine forest to produce turpentine oil as a gasoline substitute. Despite his engineering background, a mishap with dynamite led to the forest's ignition. However, Honda successfully created a functional fuel mix from turpentine oil and black-market gasoline. In October 1946, he established the Honda Technical Research Institute in Hamamatsu, which later evolved into the Honda Motor Company. The institute's first venture involved adapting small military engines for bicycles, addressing the transportation needs of post-war Japan effectively.

By August 1949, seeking to expand, Honda met Takeo Fujisawa, who, despite lacking immediate funds, promised to secure the necessary resources to advance Honda's technology. This partnership, formed between forty-two-year-old Honda and thirty-eight-year-old Fujisawa, was based on mutual respect and ambition. They envisioned grand futures in their respective fields, with Honda focusing on technological innovation and Fujisawa on business strategy. Their collaboration was marked by a shared enthusiasm and a commitment to achieving a sense of satisfaction and accomplishment beyond mere financial success.

In 1953, the formation of a union by Honda's workers caught Soichiro Honda and Takeo Fujisawa off guard, as they had not previously grappled with labor issues and were disconcerted by the idea of adversarial politics. Reflecting on this, Honda realized the importance of fostering a close relationship with the company's workers, emphasizing mutual trust. However, the immediate challenge facing the company was not the union but rather customer dissatisfaction with Honda's motorcycles, which led to a significant decline in sales.

This issue was particularly critical because the company had financed its expansion through the early collection of receivables and delayed payments to suppliers. By 1954, sales had plummeted to half of the anticipated volume, pushing Fujisawa to consider drastic measures such as bankruptcy or the possibility of a bank takeover to save the company.

In 1954, Honda set its sights on competing in the Isle of Man Tourist Trophy, a decision that significantly boosted morale during a difficult period for the company. The young workforce was invigorated by the prospect of racing glory and national pride. When Honda visited the Isle of Man to observe the race, he faced anti-Japanese sentiment and recognized the superiority of British motorcycles, prompting him to realize his limited understanding of global standards.

Honda's innovative approach led him to entrust the design of a new engine to two young engineers, Tadashi Kume and Kimio Shimmura, challenging the Japanese tradition of assigning critical tasks to more senior engineers. The development of the racing engine encountered challenges, especially with the connecting rod at high speeds. Honda's counterintuitive solution to lighten the rod resulted in a significant breakthrough.

In 1961, Soichiro Honda, founder of Honda Motor, was determined to break into the automobile industry despite opposition from Japan's Ministry of International Trade and Industry, which sought to limit new entrants. Honda's frustration with the restrictive proposal fueled his resolve to start car production sooner. At the 1962 Tokyo Motor Show, Honda unveiled a light truck and a sports car prototype, engaging the public with a contest to guess the car's price, attracting over 5.7 million entries. This public enthusiasm led to the withdrawal of the restrictive bill.

Honda's partner, Fujisawa, was known for his unique leadership style, initially autocratic but later encouraging employee initiative. This was evident in 1966 when he tackled slumping U.S. sales of the Super Cub by halting exports, financing old inventory, and having unsold models painted in bright colors to attract the youth. He left the implementation to his team and went on vacation. By mid-1967, the strategy paid off with a sales turnaround.

Honda's design philosophy for road vehicles was founded on the principles of air-cooled engines and front-wheel drive. The N-360, Honda's first compact car, became Japan's best-seller, setting the stage for the company's innovative streak.

In 1969, the Honda 1300 debuted with an air-cooled engine, front-wheel drive, and front-wheel disc brakes. Despite Honda's preference for air-cooled engines, his engineers favored water-cooled designs, especially when American emission standards became stricter. The engineers believed that meeting these new standards required water-cooled engines, a view eventually shared by Honda after discussions with Fujisawa, leading to the adoption of water-cooled engines in all Honda cars since 1969.

Takeo Fujisawa, a key figure in Honda Motor's history, believed in a management philosophy that emphasized adaptability and the cultivation of multiple talents within the company. Inspired by the Japanese proverbs "All is flux" and "Those who flourish are destined to fall into decline," he initiated a modern organizational structure in 1954 to avoid the company's stagnation. Fujisawa was vigilant in identifying the company's "blind spots" that could prevent the full use of individual talents and was driven by the idea that without continuous growth, Honda Motor would decline.

The first concrete application of his philosophy was the establishment of an expert system and the granting of autonomous status to the Honda R&D Center. Fujisawa recognized the need for multiple experts within the company, stating, "We cannot depend on Soichiro Honda indefinitely... We must cultivate experts in various fields."