Is Honda American? Exploring Honda’s U.S. Operations
When you think of major international automakers with a strong presence in the United States, brands like Honda are sure to come to mind. The Japanese company’s vehicles are a common sight on American roads, with popular models like the Civic, Accord, CR-V, and Pilot.
But just how American is Honda? The company was founded and is headquartered in Japan, but it also has deep roots and extensive operations in the United States stretching back over 60 years.
Is Honda considered an American car company? No, Honda is not an American automaker – it remains a Japanese company at its core. However, Honda has invested heavily in manufacturing, research, design, and other operations in the U.S., leading many of its vehicles to be largely American-made products tailored for U.S. consumers.
This article will explore Honda’s American history, its current U.S. manufacturing footprint and capabilities, R&D centers focused on U.S. product development, community impact, and more. By the end, you’ll have a clear understanding of just how American Honda’s operations are, even if its corporate ownership remains Japanese.
Honda’s Origins and Early Years in America
Honda’s story begins in 1946 when Soichiro Honda established the Honda Technical Research Institute in Hamamatsu, Japan to develop and produce small motorcycle engines. Two years later, Honda Motor Company, Ltd. was officially born.
It didn’t take long for Honda to set its sights on expanding internationally. In 1959, the company opened its first overseas subsidiary and business operation, American Honda Motor Co., Inc., with a small storefront office in Los Angeles staffed by just 8 employees.
The early years saw Honda focus on establishing a sales network across America to sell its lightweight, fuel-efficient motorcycles like the iconic Super Cub model. While motorcycles were regarded more as toys or for racing rather than daily transportation in car-centric American culture, Honda’s marketing campaigns successfully portrayed them as fun, convenient vehicles for a wide range of consumers.
Honda Becomes First Japanese Automaker to Build Vehicles in the U.S.
In the 1970s, rising oil prices and demand for fuel economy opened American minds to smaller, more efficient vehicles like Honda’s compact cars. This paved the way for Honda to introduce the Civic in 1972, and it became a hit.
But Honda’s impact in America was about to become even more profound. In 1979, the company opened its first U.S. manufacturing plant in Marysville, Ohio to build motorcycles. Then in 1982, this plant began producing the Accord sedan, making Honda the first Japanese automaker to build vehicles in America.
Despite initial skepticism that a Japanese company could successfully manufacture cars in the U.S., Honda doubled down on its commitment to American vehicle production. The company continued expanding its U.S. manufacturing operations through the 1980s and 1990s as sales grew.
Honda’s Current American Manufacturing Footprint
Today, Honda’s presence as an automaker in America is unquestionably massive. The company operates 12 manufacturing plants across the United States in states like:
- Ohio (Marysville, East Liberty, Anna)
- Alabama (Lincoln)
- Indiana (Greensburg)
- Georgia (Tallapoosa)
These plants produce a wide range of Honda and Acura vehicles with American workforces, including:
- Honda: Accord, Civic, CR-V, HR-V, Odyssey, Passport, Pilot, Ridgeline
- Acura: Integra, MDX, NSX, RDX, TLX
American Honda manufacturing also extends to producing engines, transmissions, aircraft and aircraft engines, power equipment, powersports products like ATVs, and more. Key stats highlight Honda’s vast American automotive manufacturing operations:
- Over 31,000 Honda associates employed in the U.S.
- $23.7+ billion invested by Honda in its American operations
- 26.1+ million cars and light trucks built in the U.S. since 1982
- 1.37+ million American-built Honda vehicles exported to other countries since 1987
In recent years, Honda has continued growing its U.S. manufacturing for products tailored to American tastes and needs. In 2016, the Performance Manufacturing Center opened in Ohio to build the Acura NSX supercar. The following year, added CR-V production began in Indiana to boost light truck supply.
Why Did Honda Invest So Heavily in U.S. Manufacturing?
So why has Honda poured so many resources into establishing a large, longstanding American manufacturing presence over the decades? A few key reasons:
Proximity to Major Consumer Market: The United States represents one of the largest and most lucrative automotive markets in the world. Producing vehicles locally allows Honda to efficiently supply this major customer base while avoiding complexities like export costs and trade barriers.
Designing for American Tastes: With extensive R&D operations in America (more on this shortly), Honda can design some vehicle models primarily with U.S. customer needs and preferences in mind when the products are built domestically.
Trade Policy and Logistics: Over the years, political factors like domestic production requirements and tariffs have incentivized import brands to manufacture in the U.S. Shorter shipping distances from local plants reduce transportation costs as well.
Currency Impact: When producing vehicles locally in U.S. dollars, Honda can avoid risks associated with fluctuating foreign currency exchange rates impacting export pricing and profits.
Honda’s American Research, Design and Support Operations
While manufacturing has been the core of Honda’s U.S. operations, the company has also established an immense American footprint for research, design, testing, and other support functions related to developing new vehicles.
Key Honda R&D locations in America include major facilities like:
- Honda R&D Americas center in Ohio for new vehicle testing and development
- Two design studios in Southern California for Honda and Acura models
- Facilities in North Carolina for power equipment products
In the early 1990s, Honda reached an important milestone by producing the first modern vehicle designed, developed, and manufactured entirely in America – the 1991 Honda Accord Wagon.
Other iconic American-led Honda/Acura models that followed include:
- Honda Ridgeline pickup (2006)
- Acura MDX crossover (2001)
- Honda Pilot SUV (2002)
- Honda Element SUV (2003)
Collectively, about one-third of all Honda and Acura models sold in America have been led in development by the company’s extensive U.S. R&D capabilities and workforce as of the early 2010s. This ensures many of Honda’s most popular vehicles are tailor-made for the American market.
Honda’s Commitment to the American Consumer and Community
Beyond manufacturing and R&D, Honda has deeply embedded itself as a conscientious American corporate citizen through its commitment to consumers and communities across the country.
Since its earliest days establishing an American sales network, Honda has embraced a philosophy of “building products closer to the customer.” This means constantly soliciting customer feedback, operating an extensive dealer network, and supporting owners with a robust maintenance infrastructure.
In the late 1970s, American Honda was already partnering with J.D. Power to survey customers about their vehicle satisfaction, dealer experiences, and more. This allowed Honda to rapidly implement customer feedback into improving its U.S. products and services – an initiative that continues today.
On the corporate social responsibility front, the American Honda Foundation was established in 1984 and has awarded over $45 million in grants to philanthropic initiatives and community organizations across America. Honda’s U.S. workforce also actively volunteers and gives back locally.
More recently, Honda has invested in programs aimed at developing the next generation of American manufacturing workers and promoting STEM education. This helps ensure the company can continue operating its vast U.S. production operations for years to come with a skilled local workforce.
Is Honda an American Company?
While it has immense operations and investment in American manufacturing, R&D, sales, and local community impact, Honda Motor Co., Ltd. remains a Japanese company headquartered in Tokyo. Its origins, executive leadership, and ultimate corporate ownership are fundamentally Japanese.
However, Honda can certainly be considered one of the most American-committed automobile import brands through its vast U.S. presence and producing many thoroughly American-made vehicles. For many American car buyers, Honda offers vehicles designed from the ground up, rigorously tested, built from domestic and locally-sourced parts, and backed by a deep local workforce – all from one of the largest automakers operating in the United States today.
Closing Thoughts
Love it or not, there’s no denying Honda’s immense manufacturing, R&D, product development, sales, and community influence across America after over 60 years of operating in the country. The company:
- Established its first international presence in Los Angeles in 1959
- Became the first Japanese automaker to build vehicles in the U.S. starting in 1979
- Now operates 12 manufacturing plants across America producing Honda and Acura cars, SUVs, trucks, and more
- Has invested over $23.7 billion into its American operations employing over 31,000 associates
- Operates major R&D and design centers, leading to many Honda/Acura models being American-made from the ground up
- Embraces corporate social responsibility by supporting local communities, education, and workforce development programs
While Honda is definitively a Japanese company by corporate headquarters and ownership, its commitment to the American market from manufacturing to R&D to philanthropy is exemplary and unrivaled by many domestic automakers. For most American car buyers, owning a Honda means driving a high-quality vehicle with true American roots.
Let’s Finish
Honda has woven itself into the fabric of America over the past six decades. What began with a tiny Los Angeles office in 1959 has blossomed into:
- Massive manufacturing operations building over a million vehicles per year
- Cutting-edge research and design centers crafting models specifically for U.S. consumers
- Multibillion-dollar investments that have created tens of thousands of American jobs
- Extensive dealer networks and a philosophy centered on customer service
- Charitable foundations supporting local communities from education to environmental causes
So while Honda remains a Japanese company at its core, it has become an indisputably American brand in practice. When purchasing a Honda car, truck, or SUV, buyers can take pride in driving a vehicle designed, built, and backed by a vast U.S. workforce and operations.
Whether it’s the Accord, Civic, CR-V, Pilot, or one of Honda’s other popular models, these vehicles are every bit as American as they are Japanese in their execution and dedication to the U.S. market. That’s quite an achievement for what was once a tiny, eight-person overseas subsidiary.