The Real Reason America Banned The Honda ATC

At the low retail price of $595, the ATC was equipped with a 90cc four-stroke 7 horsepower engine, a four-speed transmission with an automatic clutch, and giant oversized balloon tires, which served a dual purpose. The sidewall flex of these bulbous tires created enough speed differential to turn so that it could operate with a solid rear axle. The low-pressure tires, meant to be inflated to only 2.2 PSI, absorbed any impact encountered on a trail. Thus, Honda avoided equipping them with an actual suspension system (via ATV Rider).

According to the Motorcyclist, sales of the vehicle averaged about 10,000 per year, and by 1978, approximately 150,000 had been sold. During that time, Honda discovered that rural areas had better sales than dealers in urban areas. As it turns out, farmers in those rural regions had found the ATV’s utilitarian function was beneficial to their needs.

The ATV boom came during the 1980s, when several other manufacturers threw their proverbial all-terrain vehicles into the ring, including Yamaha, Suzuki, Kawasaki, and Polaris. The race was on, and suddenly these three-wheeled all-terrain cycles were everywhere. Print ads, TV commercials, and even movies, like the 1971 James Bond film “Diamonds are Forever,” featured these quirky rides. Between their appearance and relatively low price, sales in urban areas surged.

But Honda wanted to draw in consumers who thought motorcycles were too dangerous, so they capitalized on the small dimensions, which unfortunately had made them just the right size for kids to drive. In fact, Honda made a 70cc version built explicitly for kids. And that’s when the stubby little ATV ran into problems.