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Founded in 1946 and headquartered in Tokyo, Japan, Honda develops and sells motorcycles, ATVs, automobiles, and other power products such snow blowers, lawn mowers, weed eaters, generators, among many other power products. Honda is the world’s largest motorcycle company and one of the world’s largest automakers. Honda has recently initiated a new strategy with its motorcycles to target the “fun segment.” Honda’s research reveals there is a growing demand for motorcycles in the smaller 125-cc and 700-cc sizes used for leisure, enjoyment, and everyday use. These products cost less and are cheaper to operate, having excellent fuel economy. The 125-cc size is targeted primarily at Asian and Indian customers. In fiscal 2012, Honda reported that 17 percent of all its revenue was derived from motorcycles and ATVs, with total revenues of around 1,400 billion yen or approximately $16 billion. Like Honda’s other divisions, the motorcycle and ATV division has experienced declining sales over the last five years. Sales in this division are down since 2008 in Japan, North America, and Europe with sales down around 60 percent in both the North America and European markets since 2008. Sales in Asia, South America, and the Middle East however are up 11 percent collectively since 2008. In 2012, Honda reported sales of 7,948 billion yen or around U.S. $93 billion.

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