On June 11, 1959, American Honda Motor Co., Inc. was established in Los Angeles, California. Due to limitations imposed by Japan’s Ministry of Finance, the venture began with an investment of just $250,000, half in cash and half in products and parts. Mr. Kawashima spent most of the cash—$100,000—to buy a former photography studio to house its operations. “I felt that we had to put down roots and establish our own building,” recalled Kawashima. “So I thought, ‘Let’s not rent for the time being. Why not just buy the building?’ It might have seemed reckless, but I didn’t feel that I was acting out of desperation. Actually, I was dreaming of a rosy future!”

From the small storefront on West Pico Boulevard, Mr. Kawashima and seven other employees began selling motorcycles. American Honda offered three models: the Honda 50 (aka the Super Cub), the 125cc Benly, and the Dream in 250cc and 350cc sizes. Employees would load a couple of bikes into the back of a Chevrolet Apache pickup truck and drop them off at dealerships (see photo). When the bikes sold, they’d come back to collect payments and drop off new units.

American Honda was established with a goal of selling 1,000 motorcycles per month at a time when total annual sales in the U.S. were only 50,000 to 60,000 motorcycles. During its first four months—September through December 1959—American Honda sold only 170 motorcycles. But its “nifty, thrifty” Honda 50, which was more affordable (only about $250) and accessible than anything else you could buy, helped create a new market among young people and men and women who were not traditional motorcyclists. It was advertised in general-interest magazines such as Life and sold in sporting goods and outdoor/camping stores. In May 1961, American Honda finally surpassed its goal of selling 1,000 motorcycles per month. By December 1962, Honda was selling 40,000 motorcycles per year.

What really put Honda on the map was its “You Meet the Nicest People on a Honda” ad campaign, which was created by Grey Advertising. The ad depicted a mother and daughter, a father and son, a young man and his dog, polite ladies with parcels, and even Santa Claus with a bag of presents, all riding bright red Honda 50s. Following the ad campaign’s launch in 1963, Honda sold 90,000 of its 50cc runabouts. By 1970, with an expanded lineup that included the Mini Trail, CL77 Scrambler, and the groundbreaking CB750, Honda had sold 500,000 motorcycles in the U.S.