Trajectory of Challenges
Growth into a Global Company, Expansion in the New Era
The City, among other major Honda models, had become best-sellers.
Honda’s overseas manufacturing was accelerating. With motorcycles,
fierce competition for market share in the family bike market continued.
In this period, Honda was also preparing to make the leap toward becoming
a global company, and it proceeded to build a system that complemented
its characteristics by connecting countries around the world through its network.

Japan in the 1980s
Amidst the continuing recession caused by the oil crises, competitiveness of Japan’s export industries increased dramatically. In the automotive industry, the excess of exports from Japan became an issue as a result of Japan-U.S. trade friction. After the Plaza Accord in the G5 meeting in 1985, the yen’s appreciation accelerated sharply. The Bank of Japan’s ultra-low interest rate policy caused assets to flow into the stock market, leading to the so-called “bubble economy,” with the Nikkei Stock Average reaching an all-time high in 1989.

Honda’s Second Phase of F1 Participation Sparks
Social Phenomenon in An Unprecedented Bubble Economy
in Japan
(1983)
“Racing is part of Honda’s corporate culture. It does not matter if we win or lose. We want to show our best technology to the users of Honda cars in the form of entertaining spectacles,” Kiyoshi Kawashima, then president of Honda said. The dominance of the McLaren-Honda team sparked a Formula 1 boom in Japan. The team set a new record with 15 wins in 16 races in 1988 and a double-title in the four consecutive seasons to 1991.

The Benchmark for the Rest of
the Industry
Tact (1980)
The Tact was launched amid intensifying competition for market share. This coincided with a period in which women were rapidly entering the workforce, and the Tact’s popularity exploded as a family bike, especially among women. In response to the mandatory wearing of helmets on motorized bicycles in 1986, the Tact Fullmark was launched in 1987 with a built-in helmet storage space under the seat. This revolutionized the scooter’s structure, making it a must-have for all scooters, regardless of manufacturer.

Creating New Markets in
Europe and Japan
Mini-Tiller Comame F200 (1980)
The F200 was developed based on the concept of an entry-level model for amateur and hobby gardeners, at a time when the agricultural industry was shrinking and the need for home vegetable gardens was beginning to grow. The Comame’s cute, compact appearance and high performance that contrasted with large tillers were well received, and at its peak, 50,000 units were sold annually in Japan alone, making it a best-selling product.

Taking Japan by Storm with
Unique Styling and TV Commercials
City (1981)
The catchphrase, “City is full of news,” was used in a TV commercial featuring the British band Madness performing a bizarre centipede dance, which was widely covered by the media. The City was a big hit thanks to its innovative features, such as a tall-boy design realizing a large cabin space, and the simultaneous launch of Motocompo, a motorcycle that could be carried in the trunk.

Dream Engine that Challenged
the 100 Horsepower Per Liter Barrier
VTEC (1988)
Honda tackled its own challenge of what the next generation engine technology should be. In 1989, the first VTEC engine was equipped in the fully revamped Integra, delivering the world’s first “100 horsepower per liter” performance in a mass production automobile engine. VTEC attracted worldwide attention because it was the world’s first production automobile engine to achieve this feat.
- Daiei becomes the
first retailer in Japan
to achieve sales of
1 trillion yen. - U.S.-Japan Olympic
Committee decides
not to participate in
the Moscow Olympics. - Elimination in
principle of tariffs
on auto parts imports.
- Voluntary regulations
begin to limit exports
of passenger cars to
the U.S. to 1.68
million units per year. - Japan’s automobile
production volume
ranked first in the
world for the second
consecutive year,
and motorcycle
production reached
an all-time high of
7.41 million units.
Honda Sun Co., Ltd. established as
a special subsidiary based on the
Law for Employment Promotion of
the Disabled. (Approved as special
subsidiary in 1982.)


City and Motocompo
(stored in City’s trunk)
simultaneously launched*13.
Kengo Kiyama wins the NR500
All-Japan Championship Suzuka
200km race.
Civic becomes first gasoline
vehicle to achieve 40-miles per
gallon.
Mass production of alcohol-fueled
motorcycles begins at HDA in
Brazil.
BL launches Triumph Acclaim
(Ballard) in the UK.
Production of motorcycles begins
in Nigeria (HMN).
New Super Cub 50, which achieves
105 km per liter, launched*14.

Honda Electro Gyrocator (world’s
first map-based car navigation
system) introduced.

- Tohoku-Joetsu
Shinkansen begins
service. - The Chuo
Expressway opens to
traffic. - Philips begins
production of the
world’s first CD
(jointly developed
with Sony).
First mass-produced Accord
4-door sedan rolls off line at
HAM’s automobile plant in the U.S.

Honda Sun recognized as a special
subsidiary of Honda Motor Co., Ltd.
Honda Racing Corporation (HRC)
established by integrating the
motorcycle racing divisions.


VF750 Sabre and VF750 Magna
with V4 engine launched.
- Tokyo Disneyland®
opens. - Nintendo introduces
the Family Computer
(Famicom). - Unleaded high-octane
gasoline introduced.
Kiyoshi Kawashima retires and
Tadashi Kume becomes Honda’s
third president.

Honda Power Equipment
Manufacturing (HPE), a power
products manufacturing company,
established in the U.S.

Honda Cars Thailand (HCT),
an automobile sales joint venture,
established in Thailand.

Honda enters F1 World
Championship again.

3rd generation Civic and
2nd generation Ballade series
launched.
Ballade Sports CR-X launched.
Gold Wing GL1200 launched.
Shipment sales rivalry with
Yamaha ends.
Joint development agreement
signed with BL (Rover 800/Legend).
WGP500 NS500 (Freddie Spencer)
wins WGP500 series and
manufacturers’ titles.
XLV750R launched.
Super Cub 50 Super Custom
launched, achieving 180 km per
liter.

General-purpose engines (ZE
engine series) GX110 and GX140
launched.

- Glico-Morinaga
Incident - Excise tax,
automobile tax, and
K-car tax raised. - Automobile driver's
license holders
exceeds 50 million.
Honda stores are reorganized as
Clio and Primo stores (Primo
store opened in 1985).
Honda R&D Americas, Inc. (HRA)
established in Los Angeles,
U.S.A. *15

Kinetic Honda Motor (KHM), a
motorcycle (scooter) production
and sales joint venture, established
in India.
Honda of Canada Manufacturing
(HCM) established.
F1 Williams-Honda takes its first
win in Round 9 (Dallas Grand Prix).
Spacy 250 Freeway light scooter
launched.
New motorcycle specialty
dealership system Select Dealers,
New Wing Dealers, and New SSS
Dealers introduced.
Hero Honda Motors Limited
(HHML), a motorcycle production
joint venture, established in India.

Commissioned production of
automobiles begins at Bangchan
General Assembly (BGAC) in
Thailand.
NSR500 (V4) debuts with three
wins (early model).
Newly designed DOHC 16-valve
engine model added to Civic
Ballade series.

- The G5 Finance
Ministers and Central
Bank Governors’
Meeting agrees on
coordinated market
intervention to
correct the strong
dollar (Plaza Accord). - Privatized Nippon
Telegraph and
Telephone
Corporation (NTT)
and Japan Tobacco
Inc. established. - Number of k-cars
owned exceeds
10 million.

Head office relocated to Aoyama,
Minato-ku, Tokyo after building
completed.
Honda de Mexico (HDM), an
automobile production subsidiary,
established in Mexico.
Freddie Spencer wins 500 cc and
250 cc titles (first time in WGP
history).
Domestic automobile sales system
is reorganized into three PCV
(Primo, Clio, and Verno) categories.

Honda of the UK Manufacturing
(HUM) established in the U.K.

Honda France Industrielle (HFI),
a power products production
company, established in France.
Shriram Honda Power Equipment
(SHPL), a general-purpose
production joint venture,
established in India.

Mighty 11 compact Riding Power
Tiller launched.
- The Equal
Employment
Opportunity Law is
enacted. - Helmets become
compulsory for all
motorized bicycles. - Number of
automobiles owned
exceeds 50 million.
H-A-R-T (Honda Active Riders
Terminal) established.
ACURA channel development
begins in the United States.


NXR750 wins Paris-Dakar Rally on
its debut (4 consecutive wins until
1989).

Research on small jet engines and
jet aircraft begins.

Fundamental Technology Research
Center established*16
A.P. Honda (APH), a motorcycle
sales joint venture, established
in Thailand.
F1 Williams Honda wins
constructors’ title.
VFR750F equipped with newly
designed water-cooled, 4-stroke,
V-4 engine launched.
The Fusion, a new light 250 cc
scooter, launched.
Research and development of
humanoid robots begins.
- Japanese National
Railways is split up
and privatized. - NTT launches its
first cell phone
service. - Black Monday in the
U.S. New York stock
market.
Honda North America (HNA),
a North American business
management company, established.
New NSR500 launched in WGP500.
Wayne Gardner wins riders’ and
manufacturers’ titles.
F1 Japan GP is held at Suzuka
Circuit for the first time.


Tact Fullmark (with built-in helmet
storage) launched.

Legend equipped with Japan’s
first SRS airbags launched.

Signed joint production and engine
supply agreement with Austin
Rover.
Nelson Piquet of Williams Honda
takes series’ and constructors’
titles in F1.

VFR750R and RC30 launched.

4th generation Civic and
2nd generation CR-X launched.
EX300, the world’s smallest and
lightest portable generator,
launched.
- Tokyo Dome, Japan’s
first indoor baseball
stadium, is completed. - Integrated Services
Digital Network
(ISDN) service is
launched. - Freon Control Law is
enacted.
HRE, Honda R&D's representative
office in Germany, becomes a
locally incorporated company
(HRE-G).
F1 McLaren-Honda’s Ayrton Senna
wins drivers’ and constructors’
titles.
Africa Twin (650 cc) *17 launched.


Variable valve timing lift
mechanism (VTEC)
introduced.

Kumamoto Factory’s Hometown
Forestation Project receives the
Prime Minister’s Award.
New Gold Wing GL1500 equipped
with horizontally opposed
6-cylinder engine is launched.

Cub 100EX (from TH in Thailand)
imports and sales begin.
Development project for the MH02
experimental small Jet engine
commenced.

- Emperor Showa
passes away, Crown
Prince Akihito takes
to the throne, and
the new year begins
as “Heisei”
(the Heisei era). - Consumption tax
introduced for the
first time at 3%
(excise tax is
abolished). - The Berlin Wall falls.
Primo / Clio / Verno (PCV)
exclusive sales channels begin.
Honda Motor Europe (HME),
Honda’s European headquarters,
established in the U.K.

WGP500 Eddie Lawson wins
series title.

Civic 3-door with VTEC engine,
CR-X and Integra launched.
Accord selected as the
best-selling car in the U.S.
(passenger car sales by
model).
KD imports of Nigeria (HMN)
CG125NR from Brazil as first
assembled product.
F1 McLaren-Honda driver Alain
Prost wins drivers’ title.
- 13With the launch of the City and Motocompo, the Honda promoted a new outdoor lifestyle by loading motorcycles into automobiles, multiplying the fun through using different types of mobility together rather than separately. Honda moved forward with something no other company had attempted, to fully leverage its strengths in both motorcycles and automobiles.
- 14The Super Cub, which achieved fuel economy of 105 km per liter*, was followed in 1982 by a model that achieved 150 km per liter*, and then in 1983 by an ultra-low fuel consumption model that achieved 180 km per liter*.
* All figures are based on a 30 km/h flat road test with 50 cc model. - 15Honda had been promoting local production based on its fundamental principle of building products close to the customer, but in the U.S., the world’s largest automobile market, considered it necessary to strengthen its system by localizing all SED functions. Honda established Honda Research of America, a development division, in 1984 (renamed to Honda R&D North America (HRA) in 1986).
- 16Conducts a diverse range of future-oriented research, including fuel cells, robotics, aircraft, and aircraft engines, aimed at practical application. Some have already been commercialized. Aircraft research and development transitioned from basic research to mass production development, and was commercialized as HondaJet at the end of 2015.
- 17In 1986, Honda introduced the NXR750 factory racer in the Paris-Dakar Rally, which won the rally for four consecutive years until 1989. The Africa Twin (XRV650) was launched in 1988 as an adventure sports model inheriting the technology of the NXR750. It embodied the equipment and image of the NXR, with the same liquid-cooled 52° V-twin 583 cc, SOHC 3-valve 2-plug engine as the Transalp 600V. In 1989 and 1990, Honda France organized the Objet Dakar rally in which riders selected from the general public entered the Paris-Dakar rally on the XRV650, and the XRV650 won the class of unmodified production models for two consecutive years, expanding its popularity in Europe and other areas.