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Hubba Hubba Honda Honda (why Japanese quality knocks our socks off)
www.mises.org ^ | Aug 21, 2003 | Brad Edmonds

Posted on 08/28/2003 12:16:24 AM PDT by CanadianLibertarian

That title is from a Car and Driver article of the mid-1980s, about the results of the editors' putting two engines into a little Honda CRX. The Hubbas are even more fitting today, as Honda keeps building the best cars in the world, forcing other automakers to work hard to keep up. Some are having more success than others. How does Honda do it?

In Honda's case, as with any corporation, much of what the consumer sees comes from the top. Soichiro Honda, the founder, was a daring, hard-headed, friendly entrepreneur and engineer. He thwarted the good-ol'-boy Japanese business environment of the mid-20th century by working around government discouragement and restrictions, ignoring social and business pressure, and making his little machines. He began by manufacturing piston rings, moved to motorcycle engines, then motorcycles, and then he took on the auto industry.

Since he wasn't one of the good ol' boy corporations, he had to accept less promising college and trade school graduates as employees. Soichiro attended engineering school, but didn't bother taking tests or attending classes he didn't want; he was already too busy attending to his new business. He told his new employees he had faith in them, and if they didn't like the way he did business, they could leave. This was exceptional—traditionally, Japanese employers viewed new hires as lifetime vassals.

Soichiro put customers first, and he adapted quickly to customer input. He introduced his motorcycles to the American market in 1959. The bikes quickly developed a reputation for unreliability—they couldn't handle the hard paces through which Americans put them. So Mr. Honda immediately improved his engines, and by 1963 Honda was the best-selling motorcycle in the US. In 1960 he decided to build cars, and within 5 years of that decision a Honda won the Mexican Grand Prix.

The company continues to damn the torpedoes. When the American government went (more) protectionist against Japanese imports in the 1980s, Honda, along with other foreign manufacturers, built plants in the US. Today, a Honda Accord's "domestic content" for us is 97%, which makes the Accord less of an import than the Ford F-150.

The Marysville, Ohio plant that builds Accords is worth mentioning. Considered the most efficient auto plant in the world, it is where the Honda people bring young Japanese managers to show them how a plant should work. (Note that the Marysville workers decided to go nonunion when the plant opened.) Today, the Japanese continue to outstrip American automakers in auto quality, performance, and manufacturing efficiency.

The big three American automakers habitually beg the government for protection, and the Japanese just put on softer gloves and keep beating us up. Are Japanese government subsidies a competitive advantage? The Americans get subsidies, too. As to whether the Japanese restrict American cars entering Japan: Heck, suppose the Japanese allowed no American cars at all on their shores. Should that make us build inferior vehicles?

Here's part of the answer: An American, Edwards Deming, developed approaches to measuring and improving quality and efficiency in manufacturing in the 1950s. Deming was ignored by American manufacturers at the time, but the Japanese embraced him and his ideas, and later named their national manufacturing prize for him. From following Deming's advice, Japanese cars are the best in the world for the money (my high-strung S2000, street legal but built to be raced in amateur meets, needs its first full tune-up at 105,000 miles).

Many Japanese cars are now better than even German cars. Just as one example, the rear-drive Infiniti G35 is a four-door sedan that competes directly with the BMW 5 series in interior space, amenities, and performance. The G35 can be had fully equipped for about $33,000, the engine is good for 260 hp and 260 lb-ft of torque, and the interior is the same size as the BMW's. The BMW 530i develops 225 hp and 214 lb-ft while it weighs 100 pounds more than the Infiniti, and the BMW starts at $8,000 more.

I would assume everything Honda manufactures (ATVs, engines for riding lawn mowers, generators, motorcycles, outboard motors, personal watercraft, pumps, scooters, and snow blowers) lives up to the same quality, reliability, affordability, and style standards as their cars. Honda continues its record of successful adaptation to external constraints and demands by leading the industry in developing government-mandated alternative fuel vehicles. Their Insight hatchback is the only consumer gas/electric hybrid vehicle you've probably already seen on the street (the one with the rear-wheel skirts).

Americans invented many of the biggest ideas—Henry Ford made automobiles affordable; Deming showed the way to continuing quality and efficiency improvements; our marketers probably did much more than the Japanese to develop the customer responsiveness the Japanese have mastered; and we invented SUVs, pickups, and minivans. Engineering isn't the only issue, either: Style matters to car buyers, so some of the more expensive Japanese brands have hired American designers in California to make their cars look so good inside and out.

We invent great ideas, and the Japanese—Honda in particular—adopt them and put them to work. We should have the advantage in the auto industry, but our automakers want profits without sweat. Hey, it's easier to get the government to hurt the competition. One example: In the 1980s, we passed a $2000 tariff on Japanese minivans. Our automakers immediately raised our prices by $2000. It's too bad for us that our corporations would rather stiff us than learn from their own great ideas. Until they change their habits, get yourself a Honda.

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TOPICS: Business/Economy; Editorial; Foreign Affairs
KEYWORDS: america; business; cars; honda; japan; manufacturing; quality
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Makes sense to me. Why doesn anyone buy domestic anyhow?
1 posted on 08/28/2003 12:16:24 AM PDT by CanadianLibertarian
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To: CanadianLibertarian
Soichiro attended engineering school, but didn't bother taking tests

Yep, those darn tests can really be a drag.

2 posted on 08/28/2003 12:18:50 AM PDT by Mr. Mojo
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To: CanadianLibertarian
Ford F-150 Number #1 selling truck in America for over a decade. HondaSmonda I say!
3 posted on 08/28/2003 12:19:48 AM PDT by Pro-Bush (Awareness is what you know before you know anything else.)
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To: Pro-Bush
When the American government went (more) protectionist against Japanese imports in the 1980s, Honda, along with other foreign manufacturers, built plants in the US. Today, a Honda Accord's "domestic content" for us is 97%, which makes the Accord less of an import than the Ford F-150.

Interesting.

4 posted on 08/28/2003 12:21:18 AM PDT by Mr. Mojo
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To: CanadianLibertarian
Acura bump!
5 posted on 08/28/2003 12:21:28 AM PDT by Humidston (Do not remove this tag under penalty of law)
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To: Mr. Mojo
Some people are more interested in putting their knowledge to work than getting a degree. Bill Gates dropped out of college to pursue his business.
6 posted on 08/28/2003 12:24:00 AM PDT by Hugin
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To: Humidston

7 posted on 08/28/2003 12:24:47 AM PDT by Mr. Mojo
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To: CanadianLibertarian; harpseal
Well, as the article says, the Honda Accord is more 'domestic' than a Ford....
8 posted on 08/28/2003 12:37:05 AM PDT by Cronos ('slam and sanity don't mix, ask your Imam.....)
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To: Mr. Mojo
Today, a Honda Accord's "domestic content" for us is 97%, which makes the Accord less of an import than the Ford F-150.

Wow. That sucks.
9 posted on 08/28/2003 12:42:20 AM PDT by Pro-Bush (Awareness is what you know before you know anything else.)
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To: Cronos
Yeah dude but all that proves is that the Ford-150 sells well cos so much of it is not manufactured in America. In fact most of your F-150 is manufactured right here in Canada. :-) That's why it doesn't fall apart like most Fords. Ever driven a Focus? Ugh.
10 posted on 08/28/2003 12:43:16 AM PDT by CanadianLibertarian
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To: Pro-Bush
Ford F-150 Number #1 selling truck in America for over a decade. HondaSmonda I say!

I own a 03 Expedition (F-150 with a built in camper top) and a 00 Accord.

They are both excellent vehicles.

11 posted on 08/28/2003 12:45:26 AM PDT by PFKEY
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To: CanadianLibertarian
Makes sense to me. Why doesn anyone buy domestic anyhow?

In 1990, I needed a new car, and I wanted to "buy American." I could have bought a Ford or Chevy, but they were imported from Mexico or Canada. I wound up buying a Toyota, which was assembled in the US!

Mark

12 posted on 08/28/2003 12:47:58 AM PDT by MarkL (Get something every day from the four basic food groups: canned, frozen, fast and takeout)
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To: JoeSixPack1
Pingawa, o joesixpack1-san! HAI!
13 posted on 08/28/2003 12:48:08 AM PDT by martin_fierro (A v v n c v l v s M a x i m v s)
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To: PFKEY
OK...Whip me with two wet noodles and call it even, ok. The Japaneese improve on American designs, and do it very well!

Damn it!
14 posted on 08/28/2003 12:51:20 AM PDT by Pro-Bush (Awareness is what you know before you know anything else.)
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To: CanadianLibertarian
"Many Japanese cars are now better than even German cars. Just as one example, the rear-drive Infiniti G35 is a four-door sedan that competes directly with the BMW 5 series in interior space, amenities, and performance. The G35 can be had fully equipped for about $33,000, the engine is good for 260 hp and 260 lb-ft of torque, and the interior is the same size as the BMW's. The BMW 530i develops 225 hp and 214 lb-ft while it weighs 100 pounds more than the Infiniti, and the BMW starts at $8,000 more."

What's with an article about Honda, that uses a Nissan product to compare to the BMW 5 Series?

The BMW 5 Series is the benchmark, for cars in this class (and I mean for size, features, performance and price range).

For whatever their reasons, Honda/Acura has opted to NOT compete in this class. I'm not saying they couldn't be competitive.

Japanese carmakers keep the pressure on the Europeans (they sell there, too) and the Americans. I believe Ford Taurus, Toyota Camry and Honda Accord vie for number one sedan, over the last decade or so.

I give Honda a lot of credit, but have yet to own one. Will consider Acura 3.2 TL, Accord in future.
15 posted on 08/28/2003 12:55:27 AM PDT by truth_seeker
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To: truth_seeker
I take back what I said in my earlier post. My Accord is a 99 which is of no significance but I hadn't driven it in nearly a year until a few weeks ago when I took it to get cleaned. At 130K miles it seems as though it's just getting broke in. For a sedan that thing moves like a performance sports car.
16 posted on 08/28/2003 1:01:47 AM PDT by PFKEY
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To: CanadianLibertarian
"From following Deming's advice, Japanese cars are the best in the world for the money (my high-strung S2000, street legal but built to be raced in amateur meets, needs its first full tune-up at 105,000 miles)."

My 1987 Mazda 323 (4 speed manual) just got its first tune-up at 106,000 miles. What a moneysaver! It cost $6,700 in 1987 and I've put maybe $3,000 into it over the last 16 years. 29 mpg.

17 posted on 08/28/2003 2:18:39 AM PDT by Neanderthal
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To: Neanderthal
"From following Deming's advice, Japanese cars are the best in the world for the money (my high-strung S2000, street legal but built to be raced in amateur meets, needs its first full tune-up at 105,000 miles)."

My 1987 Mazda 323 (4 speed manual) just got its first tune-up at 106,000 miles. What a moneysaver! It cost $6,700 in 1987 and I've put maybe $3,000 into it over the last 16 years. 29 mpg.



My mother used to have a '86 Mazada 323. She put about 230,000 miles before the engine finally went. That was without ever doing any basic maintance or major work to it. I have owned three Hondas out of the five cars I have had and I plan on buying nothing else. Great cars, good price and just the right designs. Never had any problems with them. The Civic is a great pratical car for students and people just getting started in life. Gets good gas mileage, low cost and low maintance cost. As far as I am concern Toyota is about the equivalent to Honda, so its a matter of which style you prefer.
18 posted on 08/28/2003 2:46:35 AM PDT by neb52
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To: CanadianLibertarian
I think Lexus is possibly the finest car one can buy. It's like riding a "comfy chair" to work each day. It's a precision driving machine. You "execute" a turn, you don't just "take it" and all that.

I was surprised however at a recent quality rating poll which stated that Buick came in second after Lexus for problems reported per 100 vehicles. Seems GM has invested some effort into QA and is getting results. For myself, I've owned one too many problem GMs and will not be buying another. Too little, too late IMHO.

But I loved that Camaro Z-28 while I had it. Mmmmmmm....5.7 liter gas-guzzlin' goodness...


19 posted on 08/28/2003 2:54:04 AM PDT by Caipirabob (Democrats.. Socialists..Commies..Traitors...Who can tell the difference?)
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To: CanadianLibertarian
Another thing the domestics won't do is innovate. I recently bought a (grumble) Toyota as my basic transportation, because the "big three" won't offer me anything in AWD without it being either too big, too boxy, or both. So I got a Matrix, which is made in (grumble) CANADA. I looked at the Matrix's twin-sister, the Pontiac Vibe, but found reluctance on the part of Pontiac dealers to get me the car I wanted, and noticed a lack of enthusiasm for the model; I can only believe that they still prefer to put people in Grand Ams.

The Ford Focus (made in MEXICO) I previously had was really a nice little car that exceeded my expectations - and put the lie to a lot of "expert" naysaying - but while a fine candidate for an AWD option, Ford apparently doesn't need a small, fuel-efficient all-weather vehicle... and I needed the extra traction I had lost when I gave up the 4WD pickups that had gotten too big for my life.

I prefer to buy American, but they sure make it tough sometimes.

20 posted on 08/28/2003 2:54:36 AM PDT by niteowl77 (If you aren't still praying for our troops, then you had best take it up again.)
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