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Founders · Jun 28The Practical Genius of Honda
Built the world's best-selling motor vehicle, the Super Cub (over 100 million units), by spinning research into its own company, staying focused on engines and refusing partnerships. It nearly went bankrupt selling bikes on credit and was rescued by partner Fujisawa and a loyal banker.
Tips
- Honda spun research into a separate company funded by a share of sales▶ 39:12Honda said more than 99% of its research is total failure, so it needed its own structure.
- Honda paired his engineering genius with Takeo Fujisawa, who ran finance and sales▶ 26:55The book's verdict: there is no Honda without Fujisawa.
- Honda aimed the Super Cub at ordinary people, not the small cult of motorcycle enthusiasts▶ 34:30The Super Cub has been in constant production for over 60 years and has sold over 100 million units.
- Honda sold motorcycling itself and changed its image with the slogan about nice people▶ 36:44One mother told a dealer she would not allow a motorcycle, but she would buy her son a Honda.
- Honda refused government protection and bet the company on the best machine tools▶ 32:00He argued the machines would keep working for people even if the company went bankrupt.
- Honda stayed an engine company and kept it focused on engines and independent▶ 42:00Honda accumulated a body of engine technology that, in Ibuka's words, it alone has.
- Honda treated racing as floating research to improve its production engines▶ 42:47He said improving engines for racing lets the company improve its standard vehicles.
- A banker who believed in Honda's machines saved the company, and Honda stayed loyal for decades▶ 33:30Honda stayed with the small bank even when much larger.
- Fujisawa recruited dealers by writing to 18,000 bicycle shops and offering to teach them▶ 29:05Replies produced a network of 5,000 dealers.
- Honda nearly went bankrupt by selling bikes on credit and never collecting▶ 26:30The company faced bankruptcy because many products sold were never paid for.
- Honda's hand-made piston rings failed Toyota, which pushed him into automation▶ 19:3047 of 50 piston rings were returned by Toyota.
- Honda kept the company young by hiring young engineers and giving them real freedom▶ 46:10He even retired from direct leadership because he felt the new technology was beyond him.
- Honda built his repair reputation on the hardest jobs because customers thought him too young▶ 13:20By 25 the shop earned a profit of 1,000 yen a month and employed 50 people.
- Honda left a thriving repair shop because a garage would never reach the world▶ 17:45Honda later sold the piston ring company and netted about $125,000, which funded his next move.
- Honda held that technology must start from a human need, never the reverse▶ 43:50He repeatedly said people should use the machine and not be used by it.
- Honda worked in the lab beside young engineers and saw himself as an employee▶ 40:40He retired when he felt the technical demands of new products were beyond him.
- Honda treated failure as the path to success and learned by repeated failure▶ 4:52He lost factories to firebombing and an earthquake yet kept rebuilding.
