Kawamoto, Nobuhiko

Kawamoto, Nobuhiko
▪ 1998

      When Nobuhiko Kawamoto, president of Honda Motor Co., Ltd., visited Soichiro Honda a few months before the legendary industrialist's death in 1991, he said to the old man, "You left behind lots of good things but also things that are not right for the present." Honda responded, "Times change. You should do things the way you want to." Kawamoto took Honda's advice to heart and immediately set about not only reviving a slumping corporate giant but radically transforming its management structure. With a hands-on, dictatorial style that differed sharply from that of his predecessors, Kawamoto forced engineers to heed marketing studies and cut new-car-development costs. He also frequently bypassed top executives to communicate directly with employees at all levels of the company. The results were spectacular. Net profit for 1996 zoomed to a record $1,780,000,000. In 1997 Honda passed Mitsubishi Motors Corp. to become the third-leading automaker in Japan, and the company's North American sales, buoyed by sporty new models, were expected to jump 9% and top one million units for the first time.

      Kawamoto was born on March 3, 1936, in Tokyo. He developed a passion for cars early in life, and as an engineering student at Tohoku University, he organized a club that fixed up automobiles left behind by U.S. occupation forces. Kawamoto idolized Soichiro Honda for his maverick spirit and interest in racing cars, and he went to work for the research-and-development wing of Honda after earning a master's degree in 1963. He quickly gained a reputation as a talented engineer, excelling as a designer of Honda's racing-car engines. Kawamoto became a director of Honda in 1981, a senior managing director in 1989, and president in 1990.

      As president, Kawamoto eschewed traditional consensus-style management and held himself accountable for the decisions he made. Though he often came across as abrasive and admittedly preferred tinkering with car engines to thinking about running a company, he showed an undoubtedly keen sense for business. After the burst of Japan's vulnerable asset-inflated "bubble" economy in the early 1990s, Kawamoto decided to place more emphasis on marketing.

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