The next target customer was Honda. Honda was working with Rover and we had already won a suite of our chosen product range on the Rover 800 and Honda Legend.
That was a joint project and the shortcomings in the Rover new vehicle programming and execution was evident, even when the basic design was a Honda. The vehicle was launched with 230 'known faults' and this shocked Honda. They had never been in that territory before and they declared never again. Les Wharton (ex-Rearsby and incoming MD of ARG), asked what the Honda norm was? The answer was four known faults (these would not be detectable by an owner – for example minor vibrations; this part would be changed at the first service foc).
Honda had to be coaxed into a further project and it was strictly on Honda terms. They would lead the design, development and engineering of the new vehicle with Rover following, plus Honda would be responsible for supplier selection. Seventy five percent of the ex-factory gate cost of a vehicle came from the first tier suppliers. Honda would build their own vehicle manufacturing facility at Swindon and they would be responsible for their remaining 25%, unlike the Legend, which Rover built (badly) for Honda.
Therefore the challenge for us was to sell to Honda buyers direct and not through Rover purchasing. We already knew ‘Superman’ as Ayatasan, Senior Honda Purchase Manager, as he was known. And we had met Natosan, Chief Chassis Engineer. It was a start, but after the R800/Legend experience, it would not be easy, given Honda was searching throughout Europe for suppliers. My approach with Ayatasan was "We want business so badly with Honda, we will keep springing back up at every opportunity - it will be easier for you to give us orders to shut us up!"
And so it came to pass. However, Ayatasan was keen we work with Fukuda Press, later F-Tech, their main pedal box supplier. He wanted us to take a license out with Fukuda on the pedal box. Whilst arguing this wasn't necessary given our own design/development capability, I agreed to travel to Fukuda Press and I took Don Walker with me. He could see the ‘promised land’ for himself.
Their factory was space-age, certainly ahead of Rearsby at that stage. I met the owner, Fukudasan and I liked him. I asked him, to what did he put his company's rapid growth and success down to? I had a one word reply. ‘Honda!’ During tortuous detailed, but good-humoured negotiations, I said to Fukudasan "I don't want a license and you don't really want to grant one; we do this for Honda" he nodded. I said "let's stop this dancing around, let us agree a nominal sum in the middle and work together." He responded "Hai" (yes).
He later visited Rearsby with his wife. Beverley and I took them to a Horse & Dog show, to my home for afternoon tea and took them for a ride in my 1929 Austin 7 and 1962 E-Type. They loved it and the relationship became stronger. I took Fukudasan to Rearsby on the Monday and Bev took Mrs Fukuda to Stamford, Lincolnshire.
Indeed, on a later visit to Japan, Fukudasan invited myself and Rearsby colleagues to dinner in a Tokyo hotel. He had booked a private room. We greeted each other in the formal Japanese manner, sat down when Fukudasan said he had a surprise for us and in walked his wife! Santosan, Fukudasan's school friend (the most important relationship network in Japanese male society), employed for his excellent English, confided in me that for Fukudasan to bring his wife to a business meeting was a very rare event and great honour for all concerned.
It soon became evident that Honda was essentially an engineering-led ‘engine’ company. It sold its engines packaged as cars, motorcycles, outboard motors, lawnmowers, strimmers, generators, and pumps.
I learned that Honda was paranoid about quality and paranoid about cost.Ayatasan glowed when I shared this with him.
Honda’s philosophy, not openly stated, could be defined as…Quality is external while cost is internal. Therefore quality at all costs.
Honda had a well-earned reputation for quality, reliable products, throughout its product range. Neither attribute was an accident or fortuitous.