Both founders step down together; the handover to Kawashima (1973)
Choosing to let go of one’s gravitational pull while on top
The heart of this succession was that it was not a changeover driven by financial crisis, but an attempt, at the height of strong results, by the founders themselves to let go of a management that depended on their own gravitational pull. The success that built the world’s top motorcycle maker was, seen from the other side, a constitution heavily dependent on the talent and magnetism of a single engineer. When Soichiro rejected hereditary succession — “it does not belong to the Honda family” — and Fujisawa laid down the principle of “choosing the most suitable person for each moment,” it can be read as an effort to dismantle that dependence themselves and to remake the company into one that would run without them. And the two did not leave the rejection of heredity as mere sentiment: they backed it with concrete mechanisms — dispersed legal representation, an open-plan executive room, and a troika system.
In later years Kawashima admitted that, each time there was friction over who should become president, he envied companies with hereditary succession — and yet he declared flatly that without the founders’ decision to reject heredity, today’s Honda would not exist. Because the handover was not left as a one-time transfer — Kawashima himself stepping down after ten years to pass it on — it became a pattern that repeated. Even so, Soichiro’s shadow lingered so strongly that it was “constantly present in a corner of the mind,” and Kawashima was even described as an “identical-twin manager.” How to inherit the founders’ values while still letting go of their gravitational pull — this succession placed at the centre of management, at an early stage, a question that runs on into the 1990s decision to choose a solo path of “cars that sell over scale” and into the later course over EVs.
Revenue and net margin, FY1968–FY1978
Revenue in ¥ bn (bars) and net margin in % (line), for the years around the decision. Shaded columns are FY1973 onwards — after it was taken.
Source: securities reports
Read the full dossier in Japanese →
The Japanese edition carries the complete record of this decision — the situation that forced it, the options weighed, what actually followed, and the sources behind every claim.
Other key decisions at Honda
- 1972 Clearing the emissions law alone: CVCC and the oil-crisis reversal (1972)
- 1978 The first Japanese maker to build cars in America (1978)
- 1995 Turning its back on the logic of scale: the solo path and Kawamoto’s reforms (1995)
- 2017 Closing Sayama, consolidating domestic output at Yorii (2017)
- 2019 Closing Swindon: full withdrawal from carmaking in Europe (2019)
- 2021 “100% EV/FCV by 2040”: an engine company sets a deadline (2021)
Yen amounts are converted at the average rate of each figure’s own year — not today’s rate; the revenue chart is shown in yen. Exchange rates & sources — the full ¥/US$ table →
Disclaimer
- This page is provided for general information only and is not investment advice, nor a recommendation to buy or sell any security.
- Figures are compiled independently and include our own estimates, approximations and machine-processed data; we make no warranty as to their accuracy or completeness.
- Sources are primarily each company’s securities reports and other public filings, but errors and omissions may remain.
- Any use of this information is at the reader’s own risk. Past performance does not indicate future results.
- Company names, logos and other marks belong to their respective owners.
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