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Posts Tagged ‘Benly’

HSC55In June, Honda celebrated the 50th anniversary of its arrival in the U.S.  I posted an article on the event HERE.

Sadly, this week Honda re-confirmed in the Tokyo Nikkei, its intent to indeed wind down the U.S. motorcycle production due to declining demand.  The closure this month ends a 30 year run of motorcycle production in the U.S.  Honda launched U.S. production in 1979 and was the first among Japanese firms to make motorcycles in North America.  The plant in Marysville, Ohio produced the Gold Wing, a heavy-weight class 1,800cc touring bike, and had an annual output capacity of about 70,000 units.

1963_AdHonda launched its first overseas subsidiary in the U.S. on June 11, 1959.  Honda bought an old photo studio in Los Angeles and sent its associates off in Chevy pickups to pitch their bikes to local hardware stores and motorcycle shops.  The lead products were the Dream, Benly, and Super Cub (called the Honda 50, in the U.S.).  An ad campaign and slogan “You meet the nicest people on a Honda” reshaped how Americans looked at motorcycles and by 1968 Honda had become the bestselling motorcycle with sales exceeding a million.

Honda quickly followed up and entered the U.S. car market in 1969, selling a handful of its tiny sedans in Hawaii before launching on the mainland in 1970.  The oil crisis of 1973-1974 helped put the company on the minds of all Americans.  Honda became the first Asian automaker to set up production in the U.S., with the first motorcycle rolling off the Ohio assembly line Sept. 10, 1979, and the first car built Nov. 1, 1982.  In 1988 Honda began exporting the U.S.-built Accord to Japan ending any debate as to doubts as to whether quality standards could be maintained.

We’ve witness the American motorcycle market shrink to 1.32 million units in 2008, down almost 30% from a peak of 1.79 million units in 2005. Honda’s Q1’09 net income plummeted 95% and motorcycle/ATV units were down 32% from a year ago.  We’ve seen dismal financial results from Harley-Davidson too.

Affordability is a strong theme with motorcycle manufactures these days and Honda seems to prosper in difficult times.  They’ve concluded that the advantages of local motorcycle production have faded and will now export products from Japan to the U.S. market instead.  Despite the closure, its worldwide motorcycle business is fairly solid and they are boosting production in regions where demand is growing, mainly in Asia.

Photo’s courtesy of Honda archives.

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