The American Honda Motor Company has played a pivotal role in the expansion of Honda's presence in North America. Founded in 1959, this subsidiary of the Japanese Honda Motor Company has grown from a small operation into a major player in the automotive industry. This article explores the historical development of American Honda, highlighting key milestones and its impact on the U.S. market.
Early Beginnings
American Honda Motor Company was established in Los Angeles
in 1959, marking Honda's first overseas subsidiary. At the time, it was unusual for foreign auto companies to create subsidiaries in the U.S., as they typically relied on independent distributors. With an initial capital investment of $250,000 and just three employees, American Honda began its journey in a modest office on West Pico Boulevard.
In its first full year of operations, American Honda sold fewer than 2,000 motorcycles. However, the company quickly expanded its reach by establishing 500 motorcycle dealers and investing in advertising. This strategic move laid the foundation for Honda's future success in the U.S. market.
Expansion and Growth
The 1960s marked a period of rapid growth for American Honda. The company's "You meet the nicest people on a Honda" advertising campaign in 1963 was a game-changer, positioning motorcycles as a mainstream product for Americans. By the end of that year, Honda had sold over 100,000 units in the U.S., surpassing all other motorcycle manufacturers combined.
As Honda's popularity soared, the company moved its headquarters to Gardena, California, in 1963. By 1983, Honda had established 805 dealerships across the U.S., solidifying its presence in the automotive market. The early 1990s saw Honda selling two cars in the U.S. for every one sold in Japan, highlighting the company's success in North America.
Modern Developments
In 1990, American Honda relocated to its current headquarters in Torrance, California. This move coincided with a reorganization of Honda's global operations following the death of founder Soichiro Honda in 1991. The company formed four regional operations, including North America, to streamline its global presence.
Today, American Honda employs over 31,000 associates in the U.S. and supports a vast network of dealerships and suppliers. The company's commitment to innovation and quality has ensured its continued success in the competitive automotive industry. As Honda continues to evolve, its American subsidiary remains a cornerstone of its global operations, driving growth and innovation in the U.S. market.
