In 1960 Kawasaki built their first factory for motorcycle production. The first motorcycle was the 125cc New Ace. This is also the year that Kawasaki entered into an agreement with the oldest surviving Japanese motorcycle company, Meguro, that leads to Meguro being wholely owned by Kawasaki. Eventually Meguro provides the basis for future Kawasaki four cycle engine designs.

The Meguro becomes the Kawasaki WS1 which was a close copy of the UK BSA, and ironically was eventually sold as the BSA prior to that company's failure.