Big Red added a reverse gear in 1984, and its drive chain was replaced with shaft drive for extra durability and less maintenance. The other major ATV theme of the '80s racing was being played out everywhere from frozen lakes in the East to Western deserts to the dirt ovals of Middle America. Racing was an essential part of Honda from its founding in 1948. Thus it became part of ATC vocabulary as well, and the introduction of the ATC250R in 1981 put the rest of the world on official notice that Honda was as serious about winning on three wheels as it was on two. The world's first high performance two stroke ATC adapted Honda's CRR motocross technology to the three wheel world with predictable results, taking hordes of unsuspecting competitors by storm. Running unofficially in the 1980 Baja 1000 on pre production ATC250Rs, a group of Honda associates surprised racing legend Mickey Thompson when they caught and passed him pre running for the race. Honda's first official ATC racing participation came in the SCORE sanctioned 1981 Parker 400 held in the Arizona desert. Thanks to Thompson's considerable influence, an official three wheel class was sanctioned in the 1981 Baja 1000. In 1984, Honda's ATC250Rs started just behind the motorcycles rather than from the very back of the starting order, and then finished first and second in class, putting them fourth and fifth overall. Nothing on four wheels finished ahead of the ATCs. The three entries that did well were all large displacement motorcycles, including Honda's race winning XRTM;.

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