Honda History : The Great Gamble
In 1950, if you said that the automotive world would eventually be dominate d by a Japanese company you would be laughed at. Till 1950, the Japanese were only known for the cheap tin toys and disposable trinkets that they made. Most of the fans of the company as well as people from the industry laughed at their initial motorcycles. But then again the road was never going to be easy.
Soichiro Honda had never aimed at dominating the Japanese market. He was more globally oriented. He once had said, “I knew that if I could succeed in the world market then automatically it would follow that we would lead in the Japanese market.”
By 1950, the notion that the automotive world would come to be dominated by a Japanese company was laughable. Up to that point in history, the Japanese were know for manufacturing cheap tin toys and disposable trinkets. Indeed, most fans and industry insiders ridiculed their first forays into motorcycle manufacturing. It would not be an easy road for this fledgling company. A very long time ago, Soichiro had realized the earth’s need for transportation that was fuel efficient. This led to the creation of Honda’s first motorcycle, a 98cc two stroke one. This was fittingly called, “The Dream”.
Not listening to financial advisors, Soichiro overextended himself quite rapidly. He had bought a whole factory worth of equipment for manufacturing purposes without actually having a commodity in mind. Then, the bland, utilitarian Juno Scooter flopped in the worldwide market and this pushed Honda really close to filing for bankruptcy. The thing that saved the company from this was no financier or interventionist but a race.
The likelihood of a Japanese motorcycle winning the Isle of Man Tourist Trophy Race was almost none. Soichiro, the gambler that he was, focused on an innovative sales technique at the time called branding. Soichiro was more interested in introducing his motorcycles to the new generation of riders than actually winning the race. Fans started to take notice of the bike because of its ruggedness as well as the determination of the riders which included the renowned rider Naomi Taniguchi from Japan.
The start for Honda was quite slow and they got a tidal pay off. Apart from winning the race Honda was also able to win the minds and hearts of many top motorcyclists. The increase in international orders and interest made the bankruptcy threats seem very distant and the sales started to pick up. This reputation was invaluable for Honda and it helped him a lot as he started plans for manufacturing and perfecting the automobile.
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