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The company was founded in 1938 as Showa Aircraft Precision Works. In Japan's drive to develop its military capability in preparation for World War II, Showa supplied aircraft suspension and landing systems to various aircraft manufacturers. Banned from developing or manufacturing aircraft systems after the war, Showa entered the car components industry, using its aircraft knowledge to develop specialist suspension products for motorcycles made by the new company Honda. The relationship between Showa and Honda developed over the years, with Honda Racing Corporation accounting for more than 50% of Showa's business.