This is the last in a multi-part series based on talks given by Honda officials at the Columbus Rotary. In a rare sequence of two consecutive Monday meetings, the Rotarians invited Shige Yoshida, retired executive vice president and chief operating officer of Honda of America Manufacturing, and Tom Shoupe, the current executive vice president and chief operating officer of Honda of America Manufacturing. Honda officials also discussed a variety of topics with the Journal-Tribune following the meetings.
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Tom Shoupe, executive vice president and chief operating officer of Honda of America Manufacturing, said a recent presentation to the Columbus Rotary has given him a chance to appreciate “the historical significance” of what Honda has done in America and Ohio.
“We never stop and really think about it,” Shoupe said in an interview after the presentation.
Shoupe said that as he flew to the event, he read through his presentation.
“I closed it up and thought, ‘Wow!’” Shoupe said.
He said the “bold decision” in 1977 to build products close to American customers was “the first big step made by Honda management.”
“When we began our production operations in Ohio, the foundation of the company was not on investment in buildings and equipment,” Shoupe said. “Rather, our foundation was built on how our associates learned to focus on customer satisfaction, with a high level of teamwork, a commitment to make the best use of resources and a passion for overcoming challenges. And this culture continues to serve as the foundation of our operations in North America and all over the world.”
In 1979, Honda opened Marysville Motorcycle Plant.
“From the beginning, there was a plan to build cars in America,” Shoupe said. “In fact, as the story goes… after the first motorcycle rolled off the assembly line, the plant received a fax message from Honda Motor in Japan which read “Proceed with automobile production.”
On November 1, 1982, the Marysville Auto Plant (MAP) began with just one assembly line producing the Honda Accord. The Accord was the first vehicle made in America by a Japanese automaker and the Marysville plant has continuously produced Honda Accords since that first day of production in 1982.
“It’s easy to look at this now as an obvious decision,” Shoupe said. “But back in the early 1980s, you couldn’t say conventional wisdom led to our decision to build the Accord in Ohio.”
He said Honda led the charge restoring the pride in American workers.
“When consumers saw that Honda’s American workers could build high-quality vehicles, other international companies followed us from Europe and Asia,” Shoupe said. “Today, there are some 10 international brands building vehicles in America. And the Detroit automakers improved quality and productivity to compete. Today, the quality of almost every vehicle produced in America has risen to the highest levels ever.”
He said that in 1987, Honda made another major shift that changed the “drive and direction for much of our actions.”
The announcement called for Honda to create “a self-reliant motor vehicle company.”
It included a five part strategic plan for North America.
The five parts of this strategic plan called for:
– Building a second auto plant in Ohio, which became the East Liberty Auto Plant.
– Creation of a new research and development center in Ohio.
– Expansion of production engineering in America, which involves the creation of the production tooling and dies used in our plants.
– Exporting U.S.-built Honda vehicles, including shipments back to Japan.
– Increasing parts sourcing efforts in North America, which led to the location of many suppliers in Ohio.
Shoupe said the approach has worked.
Shoupe said in 1989, Soichiro Honda returned to Marysville to tour the plant. Honda wanted to thank the associates so much, his wife had to literally hold him in the cart as it traveled through the plant.
“I am reflecting on this now, because I think this is the kind of people-focused company we created in Ohio,” Shoupe said.
He said early officials wanted to make sure Honda associates learned the Honda way, “not only as a philosophy, but as a way of doing business, of working together as a team and building incredible products for our customers.”
He said the auto industry is changing and Honda is moving into another phase.
“Effective April 1, we began to implement organizational changes in North America to accelerate the pace of improvement in our manufacturing characteristics, which is the highest priority for our production operations,” Shoupe said.
He said the details are complex, but added that Honda of America Manufacturing has been established as “the regional leader for production and related technologies and will work to strengthen coordination with Honda’s global and North American production operations.”
Additionally, Honda is creating a Manufacturing Tech Division “to pursue strong and standardized production operations across the region in alignment with Honda’s global direction.”
The new division will be responsible for advancing and sharing new technologies. He said the division will “undertake intensive development of associates at all levels to improve Honda’s manufacturing proficiency across North America.”
“These changes underscore our commitment to manufacturing improvement for today and tomorrow and will enhance Honda’s ability to move with speed and create new value for our customers,” Shoupe said.
Shoupe said the company is continuing to “advance along the basic path established by that five-part strategy, but that doesn’t mean we’re standing still.”
“After nearly 40 years of building products in America, our challenging spirit is alive and well and we continue to invest in Ohio and pursue new initiatives that advance every aspect of our operations here,” Shoupe said.