Insight
James Dyson based his innovation framework on Soichiro Honda's approach
“The key lesson that James Dyson took from studying Honda was this framework that Dyson actually used throughout his career, and it was pretty straightforward. It was take an existing product, notice what's bad, clumsy, overcomplicated, or even ignored about th…”
Assertion Supported
The Honda Super Cub has sold over 100 million units
“The Honda Super Cub has been in constant and uninterrupted production for over 60 years. They have sold over a hundred million Super Cubs.”
Assertion Supported
Soichiro Honda grew up the son of a blacksmith in a remote village
“So he was born in a remote village. His dad is a blacksmith, and one of his earliest memories is other people making people's lives better through engineering and technology. And so what he's describing is when lighting was first installed in his very poor and…”
Assertion Supported
Following 1923 Tokyo earthquake, Honda was one of two repairmen left
“Before the earthquake and the fire, the subsequent fires that come after the earthquake, that is, the shop employed 16 repairmen. After, only two were left. Honda was one of the two.”
Insight
Honda's core founding principle was tackling the hardest problem first
“When he founds Honda, one of the principles in the founding of Honda was always start with the hardest problem first.”
Assertion Supported
Soichiro Honda personally held over 100 patents during his lifetime
“It was to be the first of over a hundred patents he would hold personally.”
Assertion Supported
By age 25, Honda's repair shop employed 50 people profitably
“By the time Honda was 25, the repair shop was earning a profit of a thousand yen a month, and he was employing 50 people.”
Assertion Supported
Soichiro Honda once sprayed tax officials with a fire hose
“Honda made local headlines when he got into an argument with the tax office. Honda decided to have it out with tax officials. By getting a fire engine hose and dowsing officials as they came out of their building.”
Insight
Soichiro Honda treated auto racing as foundational R&D for his company
“He developed a great interest in racing cars, their design, how to build them, and how to race them, which was to become basic to the success of the Honda organization later on. So he considered racing just R&D.”
Insight
James Dyson: Anyone can become an expert in anything in six months
“Anyone can become an expert in anything in six months. After the idea, there's plenty of time to learn the technology.”
Assertion Supported
Toyota rejected 47 of the first 50 piston rings Honda delivered
“So he winds up selling like 50 piston rings to Toyota and they send 47 of them back to him.”
Assertion Supported
Honda scavenged dropped US bomber fuel tanks for precious wartime metals
“The extra gasoline tanks from the US fighter planes dropped on these attacks, supplied him with needed precious and scarce metals. Honda called this dividend from the bombings Truman's gift.”
Assertion Supported
Honda netted approximately $125,000 selling his piston ring company to Toyota
“I'm pretty sure he sells this company to Toyota from the sale of this piston ring company. He nets about a 125,000 dollars, and that gives him time to figure out what to do next.”
What-if
Soichiro Honda's success relied critically on his business co-founder Takeo Fujisawa
“Honda would have never succeeded if he didn't have the right partner, the right co-founder.”
Assertion Supported
Early Honda faced bankruptcy because retailers defaulted on credit sales
“Honda was facing bankruptcy since many of the products it sold were just not being paid for. The shops he sold to on credit would never pay or they'd go out of business.”
Assertion Supported
Takeo Fujisawa built Honda's 5,000-dealer network using a direct mail campaign
“This set up a distribution network of 5000 dealers on the basis of the replies that Fujisawa received from this letter.”
Assertion Supported
Honda was the only Japanese manufacturer to reject government import protections
“At this time, there's a lot of other people in Japan trying to petition the government to essentially stop importing foreign goods and essentially protect their goods. And Honda is the only one of these manufacturers that doesn't vote for this.”
Assertion Partly supported
Honda spent ten times the value of its assets on machine tools
“They spent something like 10 X on tools than the entire assets of the company.”
Assertion Partly supported
Honda remained loyal for decades to a small bank that spared them
“And Honda in turn repays many decades later when Honda is a giant, giant company, when they're much more successful than they are now, they're still doing business with this small bank, even though they had better options available to them at that time.”
Insight
Honda targeted non-riders with the Super Cub like Apple's early computers
“They intentionally targeted non-motorcycle users in the way that Steve Jobs intentionally targeted non-technical users with the Apple II.”
Insight
Honda's early advertising campaigns sold the concept of motorcycling over products
“Honda's ads didn't set out to sell their own products. This part is so important. Honda's ads didn't set out to sell their own products. They sold motorcycling.”
Insight
Honda separated R&D because manufacturing companies treat research as a neglected appendage
“Had we left research in the parent company, it would have been treated like a stepchild. For that company's purpose is the pursuit of profits. Since good research cannot be treated as simply as an appendage on manufacturing, I decided that it would have to be …”
Insight
Honda: Research units must empower talent, while manufacturing maximizes efficiency
“The organizational structure of a research institute is different from that of a manufacturing company. A research organization should be structured to enable individuals to make the best of their ability. Whereas a manufacturing company should be organized to…”
Assertion Not checkable as stated
Honda's intense engineering focus repeatedly tanked sales before creating massive booms
“When Honda would concentrate on a goal, he would pay so much attention to it, and the company would concentrate on it so much that sales would fall off. Observers on the outside world would say that Honda was on the road to bankruptcy. When Honda then succeede…”
Assertion Supported
Soichiro Honda mandated that every Honda product must contain an engine
“Honda resisted suggestions that the company move into other fields. The company's products, he said, must have an engine.”
Insight
Senra: Henry Ford and Soichiro Honda viewed cars merely as engine delivery mechanisms
“If you study the career of Henry Ford, you just realize that, oh, he basically saw car, a car as wheels for a motor. The car was just the delivery mechanism for the motor. The motor was the center of gravity for his entire enterprise, just like it is for Honda…”
Assertion Supported
Honda rejected US joint ventures to maintain independence while competitors partnered
“Most of his competitors at the time are merging or doing joint ventures with larger American car manufacturers, so like Mitsubishi goes and partners with Chrysler, Isuzu partners with General Motors, and Honda did not”