ColdFusion - How BIG is Honda? (They Make Jets!)

Starting point is 00:00:00 You are watching Cold Fusion TV. Welcome to another Cold Fusion video. Honda. For decades, this brand has been seen as a friendly face in the auto industry. With taglines like The Power of Dreams, there's always been a sense that Honda isn't just a money-making machine. There seems to be a curiosity behind their engineering. This fits exactly with the attitude of their namesake, Soichiro Honda, who founded the company. In this video, we're going to take a look at the story of the story of

Starting point is 00:00:36 Honda and how one small Japanese company became a household name. The story starts with Soichiro Honda, born in 1906 in the rural village of Konyo in Japan. Soichiro's father was a blacksmith and the young boy spent much of his time helping him repair bicycles. From his experience in his father's workshop, Soichiro had an early love for engine mechanics. At age 15, without a formal education, Soichiro left his small village and headed to Tokyo in search of work. He soon found himself working as an apprentice in an auto garage.

Starting point is 00:01:11 At just age 17, he would develop a race car that won trophies and set a new average speed record. It was clear that the boy had talent. In 1937, he decided to start his own company mainly focusing on making piston rings. That same year, his company managed to receive a large order from a brand new car manufacturer named Toyota. Unfortunately, Soichiro would lose the contract due to the quality of his performance. parts not being up to scratch. He chose not to give up though and decided to attend engineering school, though without graduating, and take a close look and observation at factories around Japan. He spent two years painstakingly observing the best engineering practices. Once he did this, he understood

Starting point is 00:01:55 the purpose of quality control, and by 1941, Honda was able to mass-produce piston rings acceptable to Toyota. The orders from Toyota was actually much larger than Honda could manage in his current workshop, so he wanted to build a new one. But a major issue stood in his way. Japan was gearing up for World War II and this meant that a lot of materials were in short supply, particularly cement. So, Honda had to work out how to make his own cement before being able to build a new factory to meet Toyota's order. These new factories did survive the war, but Mother Nature, who was never one to miss out in a practical joke, destroyed the buildings in an earthquake. Honda decided to cut his losses and sold the whole business to Toyota, allowing him,

Starting point is 00:02:36 to focus on his first true love, the motorbike. So while materials had been scarce before the war, now that the fighting was over, Honda and the people of Japan were faced with a shortage of petrol. What people really needed was a way to get around easily while being extremely fuel-efficient. Honda saw this gap in the market. His plan was to start installing surplus military engines onto traditional bicycles, creating a kind of hybrid. The first product put to the market was the A-type motorbike.

Starting point is 00:03:07 By 1949, he had a fully designed frame and engine on a bike called the Model D, and the D stood for dream. At this point, he joined forces with Takeo, Fujisawa, and created the Honda Company as we know it today. Fujisawa brought capital, but more than money, he brought business and financial insight. Honda's fascination with mechanics led to an incredible redesign of the four-stroke engine. With this new innovation, he managed to double the horsepower. This redesign helped Honda capture 15% of the Japanese motorcycle market within a few years. However, Sochiro didn't really care about that. For him, the breakthrough was that this engine could mean a lot for Honda's performance on the track,

Starting point is 00:03:48 and soon the racing achievements easily matched those of the business. By the end of the 1950s, they had won every important prize you can think of all around the globe. Sochiero probably would have driven the machines himself if it hadn't been for a racing accident back in 1936. in 1936, which seriously injured his left eye. Soitiro would later describe how he worked so hard in his cars that he would go a week without sleep just to perfect their problems. He stated that he saw the car as his child, and he as its mother. The push for success on the track led to many developments that could be put into future production machines. So naturally, you would think that Honda would build on this brand of a world-beating speed machine, but they did just the

Starting point is 00:04:32 opposite. The company's main success was driven by the 1958 50cc C Supercub, which had been specifically designed to be a safe and simple runabout. They specifically wanted a product that included women and other individuals who otherwise wouldn't ride a motorcycle. This was to expand on the typical male customer base of the motorbike. The Super Cub bike needed to be easy enough to drive with just one hand so customers could carry their shopping or deliver a package. It was basically a bike for running errands and it sold in huge numbers. In the numbers, within just two years of its release, the Super Cub made Honda the biggest motorcycle manufacturer in Japan, and surprisingly, the Super Cub itself is still in production.

Starting point is 00:05:14 Over 100 million have now been manufactured, making it the most produced motor vehicle in history. Honda, riding high on the Supercubs popularity, thought it was time to look across the seas. They set up American Honda Company in 1959. Interestingly, Honda didn't rely on established distributors because they knew that they weren't going after the existing motorcycle market. They were going to create an entirely new one for people who previously thought motorcycles were dangerous.

Starting point is 00:05:42 It was a complete reversal of the big macho image in the United States thanks in part to celebrities like James Dean and Elvis. So to highlight this different approach by Honda, they sold their bikes in sporting goods stores, hobby shops and even hardware stores instead of existing bike retailers. their tagline really hit the point home. It was, you meet the nicest people on a Honda. And it worked. Within a year, almost 50% of the bikes sold in American soil were from Honda. Maybe this shows the enduring power of advertising, but if we're honest, it probably has more to do with the fact that they were selling a lighter bike with double the horsepower at well

Starting point is 00:06:18 under a quarter of the price of American-made machines. From 1960 to 1965, the revenue of Honda's American branch went from $500,000 to almost 80 million. During this period, the firm was producing 100 bikes per month, while other major bike manufacturers were only managing 15,000 a year. Honda were far and away the largest motorbike producer and still are till this day. In 1967, the time had come for Honda to spread its wings. They were going to go from two wheels to four. Soichiro Honda himself was excited by the idea of building a affordable, efficient cars. It was his lifelong dream. Honda studied small European cars such as the ones developed by Fiat in the late 1960s. The new class of ultra-compact cars seemed to be the

Starting point is 00:07:08 right direction. Their first attempt was a two-door pickup truck, the Honda T-360, but this vehicle didn't really gain much traction at home or abroad. But as fate would have it, the mood of the world was changing and changing in Honda's favor. As a result of social change in the 1960s, the early 70s saw a growth of the environmental movement. There was now a growing dissatisfaction in regards to the air quality in major US cities. This spawned the Clean Air Act of 1970, where all manufacturers were to comply with new strict regulations on vehicle emissions. In a rather telling moment, the three largest auto manufacturers in the United States testified

Starting point is 00:07:49 to Congress adamant that these new rules were impossible to achieve. To the shock of everyone, a representative from Honda said that it's could be done. As a result, the Americans did take on the challenge, but it was done as more of an afterthought. They put something called a catalytic converter in their cars to clean up the air after it had been combusted in the engine. Honda, on the other hand, tried a different approach. They built a totally new revolutionary engine from the ground up that passed the emissions tests right off the bat. This revolutionary engine was called a compound vortex controlled combustion engine or CVCC for short. The very first car to use this engine would be a smash hit. It will be

Starting point is 00:08:31 launched in 1973 and its name was the Honda Civic. Some of the new cars tend to be choosy when it comes to fuel. All Honda engines operate without a catalytic converter so you can use either regular or unleaded gas. Culler up? Yeah. Which one, ma'am? Bless me, young man. If you own a Honda, you can be the one who's choosy. Honda, we make it simple. By this time, gas prices in the United States were high and the Civic was light on fuel

Starting point is 00:09:11 and reliable. It was the perfect car at the perfect time. Car buyers were spreading the word that this new little Japanese company called Honda built reliable cars and soon they were selling 10,000 civics per month. The sales continued and in just over a decade, Honda is established themselves as one of the world's leading car manufacturers. In the 1980s, the company set up a manufacturing branch in the US, and the Honda Accord was the first international car to be made in the United States in 1982.

Starting point is 00:09:43 Interestingly, the quality of the cars were the same as their Japanese counterparts. This dispelled the age-old myth that American workers were inferior to the Japanese. This proved once and for all that the real problem was with American management and not the workers. As the 90s rolled around, the strength of the company continued and the Japanese firm overtook Chrysler to become the third biggest car manufacturer in the United States. But by 1993, they began to slip as they were hit with a scandal when it was discovered that a number of Honda managers were accepting tens, if not hundreds of thousands of dollars, from dealers who wanted special treatment and franchise options.

Starting point is 00:10:22 After these issues, Honda returned to what it did best. So Chiro Honda may have died in 1991, but his enthusiasm for research and development were still very much a part of who Honda were. They led the major manufacturers when it came to emissions and regularly experimented with alternative fuels. One such experiment was the Honda Dream, which won the largest ever solar-powered car race. As the new century began, their efforts to improve efficiency paid off as a sudden spike in oil prices meant that consumers suddenly valued this aspect far higher than ever before.

Starting point is 00:10:55 Honda saw an increase in popularity in their gas electric hybrids and with the Civic GX in 2006, they were the first company to make a natural gas powered car for the general public. Today, Honda's image is much the same as it's always been. They are still seen as a reliable, well-made brand who focus on efficiency and great research and development. Honda is the eighth largest auto manufacturer on the planet, but interestingly, they make the most internal combustion engines of any company clocking in at 14 million units last year. Honda is on track to produce over 5 million vehicles this year. The company has factories in over 20 countries.

Starting point is 00:11:34 Honda currently has about 208,000 employees. They made $130 billion in revenue in 2016 and just under $30 billion in profit. Just for comparison, the top two Volkswagen and Toyota, both had revenues of $250 billion and $45 billion, respectively. Although struggling in their local markets, as they have been for a while, Honda's future may in part be seen in partnership. like the one they have with General Motors, where they're working on creating a fuel cell to be released into the market in 2020. While cars make up 70% of their revenue, motorcycle sales in the emerging markets, especially India, reveal some mind-blowing numbers.

Starting point is 00:12:12 They're selling 17 million motorcycles in India annually, compared to just half a million in the United States. The company also makes a wide range of motorized products, everything from outboard motors and boats to lawnmowers, heads trimmers, water pumps, leaf blowers, and, and, and and various types of generators just to name a few. Honda has built 57 of their only aircraft, a jet called the HA-420, which currently costs $4.5 million per unit. Probably one of their most well-known but still interesting side projects is the famous

Starting point is 00:12:45 Asimo robot, which stands for Advanced Step in Innovative Mobility. The robot is part of Honda's Research and Development Robotics program which started back in 1986, but they've come a long way since then. And yes, although Asimov still may struggle with stairs, it's still an interesting project for Honda to have. Honda's newer robots include a multi-purpose utility robot, an emotional companion, and a robot that serves as the wheelchair reimagined. Honda believes that robots should understand human needs and improve lives.

Starting point is 00:13:19 All right, so we're almost at the end of the video, but before we wrap up, let's look at four interesting facts about Honda. Number four, in the world of motorsports, Honda has the greatest number of victory. in all disciplines. Using their racing engineer knowledge, Honda is set to work on building a reliable mid-engine sports car. The result was the Honda NSX released in 1990. It was a stunning car that went head to head with the likes of Ferrari and Porsche. The new NSX, released in 2016, has three electric motors and a 3.5-Liter V6 turbo, with a combined power output of 573 horsepower.

Starting point is 00:13:55 This power is put through a 9-speed transmission that propels the car from 5.5-3-horsebo. that propels the car from zero to 100 kilometers an hour in 2.9 seconds. Not bad for a Honda. Number 3. In 1981, the Honda Record was the first car to have an onboard navigation system. It wasn't a GPS like we have today, but a series of manual maps with an onboard gyroscope to calculate the car's position. Number 2.

Starting point is 00:14:21 The VTEC, or Variable Valve Timing and Lift Electric Control, is a system developed by Honda, results in high performance at high RPM and lower fuel consumption at low RPM. Soichiro Honda didn't care for a traditional education as highlighted by his mischief during school. You see, back then, his school gave grade reports to children to give over to their parents to view. As a confirmation that the parents had seen it, the form was to be stamped with a family seal. The tinkering Sochiro created a stamp to forge his family seal out of a used bicycle

Starting point is 00:15:10 pedal cover. He even made stamps for other children. ended up getting busted and doing so. Honda has been quoted as saying, I don't give a damn about a diploma. What I want is the knowledge. He also has a couple of other good quotes. For example, the explanation of a Japanese proverb, it goes, raise the sale with your stronger hand. And this means go after the opportunities in life that you are best equipped to do. He also said, I'd sooner die than imitate people. That's why we work so hard because we don't imitate. And another one, Success is 99% failure.

Starting point is 00:15:45 And I think this last one's pretty good. When I take stock of life, I realize how important personal contact is and how much more they are worth than innovation of machines, because people open up thousands of experiences which we would otherwise be unable to understand. So there you have it. That's a bit about the history, size, and some facts about the Honda Motor Company. For me, it's interesting to think that Sartiro Honda's ingenuity from a young age and passion, for quality carried through with the company for the better part of a century. Even when some of the biggest auto manufacturers in the world said that the

Starting point is 00:16:20 environmental regulations put upon them by the government was impossible, little Honda proved them all wrong through straight engineering. And I think that's pretty cool. But anyway, let me know what you guys think in the comments section below. If you've just stumbled across this channel, feel free to subscribe. This has been to go-go. You've been watching Cold Fusion and until next time, I'll catch you again soon for the next video. Cheers guys. Have a good one. You know,

ColdFusion - How BIG is Honda? (They Make Jets!)

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