Honda President Commits to “Distinctive” and “Sporty” Vehicles

After having taken quite a beating with reviews of the new Civic, Honda has been on the offensive, promising updates while announcing its new “Earth Dreams Technology” plan to reestablish itself as a fuel economy leader. With the debut of the EV-STER electric sports car concept and confirmation that a new NSX is on the horizon, company president Takanobu Ito is now going a step further, while explaining the faults of the past.

In an interview with the The Nikkei, he explains Honda’s old product planning method. “We divided the world into six regions, and Honda’s regional operations were each responsible for their respective regions. Whenever we planned a product for the global market, our thinking was that we needed to listen to each regional supervisor.”

The result, says Ito, was a lowest-common-denominator approach to building a car, watering down all the characteristics of a vehicle to the greatest mass-market appeal. The problem admits Ito is that, “When you harmonize all the different opinions, you end up with a safe, boring car.”
Under the old method of doing business, the vehicle development team was essentially taking the designed-by-committee idea and building a car around it.

Ito says that since he took over in April of last year, changed the system. “I had three corporate officers each supervise luxury, midsize and small vehicles,” he said. “Putting more authority in their hands, I asked them to create more competitive autos and to speed up coordination with product planning and regional operations. I set up a structure that would allow them to take the lead in realizing the wishes of the development team. The fruits of these moves will begin to appear in the market next fiscal year.”

Exactly what those fruits are, says Ito, will be cars that are environmentally friendly and safe, but also ones that are “highly distinctive”. Honda, after all, has a long history of unique vehicles from the NSX, S2000, CRX and del Sol. But perhaps most importantly, he says, “This strategy will be represented by our effort to make vehicles more sporty.”

The first true example of this plan will be evident when Honda unveils the next-generation NSX at the Detroit Auto Show next week.

Source;
http://www.autoguide.com/auto-news/2012/01/honda-president-commits-to-distinctive-and-sporty-vehicles.html

Honda back in the innovation game

By Richard Russell @ Globe and Mail

Although Honda built its reputation in engineering and innovation, in recent years it has strayed from that path – there have been no new engines, transmissions, hybrid, electric or plug-in systems in an era when the competition is bombarding us with new thinking.

Honda Motor president and CEO Takanobu Ito admits the company has had trouble. “The real challenge facing car companies around the world is the speed at which change is taking place. To be honest, we have not been able to keep up as well as we’d like.”

He also heads up Honda R&D and in that role says his first task as president is to push for advanced technologies, advances that will put Honda ahead of the pack in the fields of batteries, hybrids and fuel cells while working on further efficiencies with the internal combustion engine. “We’re hard at work on all of these at once,” he said recently.

The previous day, at the company’s R&D centre in Motegi, 125 km north of Tokyo near the area decimated by the March earthquake and tsunami, we had sampled a steady stream of new innovations that will find their way into an array of new vehicles in the next couple of years.

We drove a variety of new and future vehicles powered by a completely new family of four- and six-cylinder engines. We tried several new transmissions, a truly innovative all-wheel-drive system, various hybrids including one without a transmission, pure electric vehicles and a sleek sedan powered by a fuel cell.

On the engine front, a unique combination of variable valve-timing, twin camshafts and direct injection has been developed allowing engines to run on the fuel-savings Atkinson Cycle without the loss of power or torque previously associated with that method. These include a quartet of new four-cylinder gasoline engines ranging in displacement from 1.0 to 2.4 litres and a new 3.5-litre V6. The new 2.4-litre will first appear in the next Accord, late in 2012, and perhaps the new CR-V shortly afterward.

We drove vehicles powered by a new 148-horsepower, 1.8-litre four that would be right at home in a mid-cycle version of the new Civic being readied for the 2013 model year and a 127-horsepower, 1.5-litre four destined for the Fit. In all cases, these preliminary power figures are on the conservative side but considerably higher than current engines of similar displacement, while consuming 10 per cent less fuel. We also sampled a Civic powered by a potent little 1.6-litre turbo diesel.

Honda engineers have developed a trio of new continuously variable transmissions for small and mid-sized cars. On road and track they exhibited less of the “motor-boating” and “rubber-band” effects associated with CVT transmissions. Only when pressed hard on the track did they assume the CVT propensity to sound like a clutch was slipping.

Honda has also come up with a seven-speed dual clutch gearbox for higher power applications.
All of these engines and transmission will appear in standalone or hybrid applications across a wide range of vehicles of all sizes and shapes in the next two years.

Honda also showed off what it says is the world’s most efficient two-motor hybrid system, one that allows a big family-size car to operate without a transmission with a resulting saving in space and cost. Headed for the North American market next year in the next-generation Accord, it can run on electric or gasoline power or a combination of the two.

The main electric motor produces 221 lb-ft of torque and is used to launch the car, which can run for up to 24 km on battery power alone. The second electric motor is used as a generator to recharge the batteries. At highway speeds, the electric motor drops out and a 134-horsepower gasoline engine takes over.

The IC engine also comes into use to drive the generator and keep the batteries charged, much like the Chevrolet Volt. With the big electric motor able to get the car to cruising speed there is no need for a transmission.

The company also turned us loose on the big oval of the adjacent Twin-Ring Motegi racetrack in an Accord-size sedan equipped with the new V-6 sending 310 horsepower and 265 lb-ft of torque to the front wheels through the seven-speed DSG gearbox and a pair of 27-horsepower electric motors powering the rear wheels.

In addition to the abundance of instant torque when accelerating, one motor is programmed to send more power to the outside wheel in a corner while the other applies negative torque to the inside wheel.

Off-the-line performance can be silent and seamless with the twin electric motors providing the go – or is truly impressive if you get into the throttle and add the V-6 to the equation. Turn-in is exemplary and transient response exceptional thanks to the rear wheels being used to pull the car into the turn. Add to this the ability to get on the power earlier when existing the corner and you’ve got a true sports sedan.

Look for this combination in a forthcoming replacement for the big Acura RL sedan and the replacement for the NSX sports car.

Source;
http://www.theglobeandmail.com/globe-drive/new-cars/auto-news/honda-back-in-the-innovation-game/article2287398/?utm_medium=Feeds%3A%20RSS%2FAtom&utm_source=Home&utm_content=2287398

Honda CEO Interview

First Glimpse of the 2012 Euro Honda Civic Backend

First glimpse of The New Honda Civic -

Honda line-up at the 2011 IAA Frankfurt Motor Show



The new Honda Civic will be launched at the 2011 IAA Frankfurt Motor Show in September. Developed specifically for the European market, the new Civic will be offered exclusively as a five-door hatchback and will compete in the C-segment. It will reach European showrooms in early 2012.



The refreshed design of the new Civic features a rear combination light that works as a spoiler. The aerodynamic design of the spoiler manages the air flowing over the top and the sides of the car; this is just one example of how the new Civic has been refined.



Nearly all the body components have been redesigned with particular focus on ride and handling, reduced CO2 emissions, interior quality, while preserving the class-leading cabin and boot space and flexible practicality.



Find out more by watching the short film releases detailing the car's development. The films are hosted on an interactive media player you can easily download films and images or even embed the whole player in your site. http://multivu.com/players/English/51356-honda-motor-europe/



Another highlight will be the 2012 model year of the Honda Insight, which has received a facelift - more information about this model will be provided in due course.

The exhibition of cars will be completed by the display of the CR-Z, the CR-V, the Jazz and the Accord.



In addition, Honda will show a selection of its latest motorcycle and power equipment products.



The future according to Honda will be portrayed by showing the Honda EV Concept and the EV-Neo - Honda's electric vehicles on four and two wheels, as well as the FCX Clarity fuel cell electric vehicle and the Plug-In Hybrid Vehicle platform display.



Source;

http://www.hondanews.eu/en/news/index.pmode/modul,detail,0,1951-DEFAULT,21,text,1/index.pmode

Honda R and D: Mind Contol a Car

This is a neat idea, but I think all we'd have to do is take the tech that Honda has developed for ASIMO and incorporate it into a R2 unit like below.... no?

Posted on: January 31st, 2011 by Hannah Westfield

Everyone has had a time when they wished things could be achieved through thought alone. As children, many try to move objects and imagine what it would be like to have the power to do things through thought alone.

Well, incredibly this idea may not be far away. Honda, the Japanese car manufacturer, has been having talks this weekend with some top fashion designers. The idea is to design and produce a stylish and attractive ‘driving hat’, which should be able to allow the wearer to be able to undertake tasks while driving via just thinking about what needs to be done.

It sound like something from a futuristic science fiction film, where a UFO or weapons system is controlled purely by thought. However, this is a real prototype that will actually read its wearers brainwaves to do simple tasks for the driving. It will be able to undertake commands to turn on window wipers or headlights, open things like the boot, or other simple tasks.

The scanner and controller are so small that it can actually fit into the lining of a hat, just an ordinary hat, not even a specially designed one. Some have said that Honda are now looking to get high-end fashion designers and Hollywood stars involved in the project.

Up until recently, reading brain pattern has required probes and often hair removal. However, Honda’s design has managed to read brain waves through hair and via soft pads (no proing required). The idea of the hat is to be a fashionable driving aid, making life easier, while making the driver look good.

Source;
http://news.carrentals.co.uk/do-you-wish-you-could-think-something-to-be-done-34235900.html

The threat to Honda's mojo

Really good objective article....
Year of opportunity goes in reverse for Brand.

LOS ANGELES -- For Honda, 2010 was shaping up to be a year of tremendous opportunity.

With Toyota in the midst of the recall mess and two of the Detroit 3 climbing out of bankruptcy, Honda Division was in a unique position to increase sales and seize market share.

It didn't turn out that way.

Instead of gaining on its rivals, Honda's U.S. retail and overall share are down this year. Honda brand sales are up just 4 percent through November, in a market that's up 11 percent.

"Honda is not riding the wave" of the auto recovery, says Lincoln Merrihew, managing director of Compete Automotive, a market research firm.

Some of that has to do with timing. Two crucial products, the Civic and CR-V, are in the final year of their product cycle, and the Accord is 18 months from a redesign.

But other problems -- such as declining buyer consideration, an outdated inventory system and a sliding reputation among younger car shoppers -- suggest a brand that has lost some of its mojo.

Some missteps are easily reversible. For example, Honda held back production and inventory in February when the economy began to show signs of life, giving an opening to more aggressive manufacturers.

John Mendel, American Honda executive vice president, says a lull in Honda's product cadence arrived with the recession. Combine older products with Honda's aversion to discounting -- at a time when people were looking for deals -- and the division failed to keep pace with brands willing to dicker and sell volume to commercial fleets.

Share? Who cares?The view at Honda?
It's a short-term blip that doesn't matter.

At Honda, "no one talks about share," Mendel said in a recent interview. "Chasing share gets you into bad habits. We set a business plan to sell a certain number of cars. We don't set the plan based on an assumed share. We plan to grow 2 or 3 percent in volume in good times, and bad times. And there are times we'll give share back.

" Honda was wary of cranking up production too soon, and it paid a price for that cautiousness.

"We had the capacity. We saw a blip in the truck market, but we wanted to make sure it was sustainable, so we were six months late," Mendel said.

But the problems go deeper than that.

Honda dealers are having trouble providing shoppers with the vehicles they want. Honda's inventory and allocation system was designed when Honda had far fewer nameplates and trim levels, and the model proliferation has quickly outstripped the system's ability to let dealers order the exact vehicles they want.

The outdated system is a key reason for the slippage in Honda's dealer satisfaction scores on National Automobile Dealers Association surveys.

"Inventory has been a problem," said Ron Theis of Honda of Corvallis, in Corvallis, Ore., who is chairman of the dealer advisory board. "We could sell more if we had them."

Honda also is losing cross-shop battles, according to Compete Automotive, which measures buyer consideration of brands.

During the summer, Hyundai -- whose sales are only half those of the Honda brand -- nearly eclipsed Honda in the percentage of consumers that shopped their respective brands, according to Compete. And the company says the number of shoppers entering the new-car market is growing faster than the number of shoppers interested in Honda.

"Ford and Hyundai shoppers are cross-shopping Honda less," says Merrihew. "Even Toyota shoppers are shopping Honda less."

Loyalty -- but . . .

On the plus side, the repurchase-loyalty rate among Honda owners has been growing, from 42 percent in 2001 to about 56 percent this year, according to R.L. Polk data. The industry average is about 44 percent.

That loyalty usually comes in handy when new product arrives. But Honda's recent record on new-product launches has been spotty.

"Typically you get a spike with your own customers when you have new-product launches, and Honda has been pretty quiet," said Polk analyst Lonnie Miller. "With sales performance and repeat selling, your owners get rejuvenated with new products." For all its recall troubles, Toyota is trouncing Honda in two cases this year where competing models were launched at about the same time.

In the battle of dueling hybrids launched last spring, the Prius is outselling the Insight 8 to 1.

Honda's U.S. execs planned to sell 60,000 to 80,000 Insights a year; through November, only 19,325 were sold. That's probably why Honda introduced a base model Insight last week with less content that is $4,610 cheaper than the base Prius.

The Accord Crosstour hasn't fared much better against the Toyota Venza, which has a base price of about $1,500 less. Through November, the Venza has outsold the Crosstour 43,325 to 25,927. Data from auto research firm TrueCar show that both Crosstour inventories, and the discount needed to sell them, are larger than those for the Venza.

Honda's sporty new CR-Z hybrid coupe has fallen short as well. The CR-Z was launched with much fanfare in August, but with a modest 15,000-unit annual sales target. Still, Honda sold just 4,373 units in its first five months, with 3,000 cars sitting in inventory as of Nov. 1.

On the plus side of the launch ledger, the recently redesigned Odyssey minivan introduced in September is off to a strong start.

Why have the launches been letdowns?

"Lowest-common-denominator styling," says Jesse Toprak, a TrueCar vice president.

He says consumer clinics and word of mouth show that an increasing number of shoppers feel Honda has lost its way.

"The growing Gen Y demographic is more discriminating with their taste," he said. "Honda has become a safe purchase and developed a boring-car image, especially in Los Angeles and Florida, where opinions are formed for the rest of the nation."

And while the Venza is marketed to 60-somethings, "the Crosstour isn't being marketed at all, and it's expensive as heck," says Tracey Schneiter, vice president of financial analysis and forecasting for consultancy IRN Inc. in Grand Rapids, Mich.

Schneiter says that the Crosstour, which tops out above $37,000, is an example that shows Honda doesn't understand the proper model mix and features for its targeted consumer.

Losing APEAL

Art Wright, a Honda and Hyundai dealer in Lehigh Valley, Pa., says marketing has never been Honda's strong suit. And with tougher competition from Hyundai and Ford, Wright says it is no longer just a matter of waiting for customers to show up for their next new Honda.

"We've always been a product-oriented company," he says. "But right now the market is value-oriented, and you have to have the right marketing to go along with it."

In 2007, Honda reported its 11th straight year of record sales. It also grabbed four awards out of 19 categories -- the most of any brand -- in J.D. Power's APEAL survey, which measures how gratifying a car is to own.

From being among the leaders of mass-market brands in 2007, Honda's APEAL scores have fallen to below-average each year since.

Honda executives and some dealers see a much brighter 2011. They expect an economic recovery to coincide with a new Civic and CR-V due in the next six months and a redesigned Accord for mid-2012.

Says Mendel: "When the latest survey was done, the majority of our volume was old-model product. We were still on our old Odyssey and Civic, an Accord just prior to model change, and no CR-Z. We're going to stand tall on APEAL next time around."

Mendel is focusing on the early success of the redesigned Odyssey minivan, instead of niche products like the Crosstour and CR-Z. Sales of the new minivan are up nearly 50 percent over last year's sales of the old model.

Honda appears to be catching up since it cranked up North American truck production in August. Recent sales of the Odyssey, Pilot and CR-V all have been stronger.

Honda also is getting heavier into the incentive game, with an all-time high level of consumer incentive spending, though still well below the industry average. In the fourth quarter, Honda also unveiled cash-per-car dealer incentives ranging from $500 to $2,500 on the Civic and Accord, aiming for a 16 percent volume boost.

The Civic hit the target in November, but Accord sales were up just 10 percent.

Inventory snarls

Dealers say they could hit sales targets if Honda would fix its inventory and allocation system. The system, called MOVE (for market-oriented vehicle environment) was rolled out in 2001. Honda has promised an update in 12 to 18 months.

Oregon dealer Theis, a 25-year Honda veteran, said increasingly complicated model proliferation has taxed the current MOVE system. It's about more than just days' supply on a dealer's lot going toward turn-and-earn; it determines what vehicles can be ordered at a particular time.

Large and small dealers agree that Honda's inventory, allocation and manufacturing systems are not properly aligned, requiring a combination of mathematics and luck to get the right cars in stock.

The new Odyssey is an example of what frustrates dealers. With pricey options such as rear-seat video, power tailgate and leather seats, the new van has many more trim levels and features. Dealers believe they are better judges of local tastes than are factory reps.

"Right now we can choose within certain build constraints each month, but that can still be reconfigured by the factory," said Theis. "Dealers say if they could get the cars they want, and get more local control, they could grow."

The new allocation system "will provide dealers with an intuitive, more localized and market-focused way of managing their inventories," said Dennis Manns, vice president of sales and logistics planning.

The current inventory system is one reason dealer satisfaction scores, as measured by NADA, have fallen. Mendel says he takes the NADA survey seriously, but still brushes off the complaints as being closely linked to dealer profits.

"The NADA score has correlated to dealer profits for time immemorial," he said. "Honda and Toyota have been at the top forever, so relatively speaking, if I were a Ford or Hyundai dealer, I would be ecstatic.

"But I know of no Honda dealer who would swap a Hyundai dealer for their store straight up."

Good and bad news
PRO
• Odyssey starting well
• Civic, CR-V coming in 2011
• Low inventories
• Strong retention

CON
• Lackluster launches
• Staid styling
• Obsolete allocation system
• Fewer cross-shoppers.

Source;
http://www.autonews.com/apps/pbcs.dll/article?AID=/20101206/RETAIL03/312069954/1178

Honda stresses product, tech blitz to get back on track

Honda Motor Co. survived the global financial crisis better than most, avoiding the full-year losses seen on many balance sheets. But Honda's rebound has not been as sharp as most of the rest of the industry. American Honda's sales rose only 3 percent through September, compared with the 10 percent advance for the U.S. market as a whole. Its market share shrank to 10.6 percent, from 11.3 percent a year earlier.

But Honda Motor CEO Takanobu Ito says new products, led by the redesigned Odyssey minivan, will deliver above-average growth in 2011. A blitz of new technologies is also on tap for the next two years, including a hybrid system for mid-sized to large vehicles, an electric car and a small clean diesel drivetrain. Honda also will start overhauling gasoline engines and transmissions.

Ito, 57, spoke with Asia Editor Hans Greimel through an interpreter at Honda's headquarters in Tokyo about the latest technology drive, the positioning of the Acura brand and Ito's market outlook.

Honda's U.S. sales growth is slower than the industry average. Where will it be next year?

Our sales are slightly below our initial expectations. But for next year we will have help from the new Odyssey, an incredibly strong product [which launched this fall in the United States]. The biggest reason our sales are slightly behind is due to the good growth of Hyundai, especially the Sonata. To counter that, we have plans to make the Accord and Civic far more attractive. So for next year, we should be able to get sales growth above the market average.

Has the traditional rivalry between the Honda Accord and Toyota Camry turned into a three-horse race with the Hyundai Sonata?

It has become a competitor.

What models do you see delivering the biggest U.S. sales growth?

The segment that's showing relatively good growth is the light-truck category. And under those circumstances, we are introducing the highly competitive new Odyssey, for which I have high expectations.

The styling looks really sharp. And it comes equipped with a six-speed automatic transmission and our original cylinder deactivation system, which is a big contributor to fuel efficiency and has been further refined. So it combines good driving, good fuel efficiency and good looks. And this has all been developed in the United States by Americans for the American market. I'm very confident that with the Odyssey, we've come out with a good car at the right time.

What about small cars? Are Americans ready to buy them?

With overall demand in such severe shape, it has become difficult to forecast how acceptable the market finds small cars. But if you look from a long-term perspective, demand for small cars -- in our case, the Fit class -- will grow. But it may take some time.

Does that apply to hybrids as well? Sales have been sluggish this year.

Although American people talk about fuel economy, they are sensitive to the price of gasoline. They have the natural tendency to like something big and powerful. Therefore, my impression is that demand for technologies specializing in fuel economy, such as hybrid vehicles, would be impacted by the fuel price.

However, in the long run, we must reduce carbon dioxide, and we must increase the attractiveness of products, and hybrid technology has great potential here. Hybrid is a very good technology to make the vehicle more powerful and to increase fuel economy. I think it is important for us to continue refining our hybrid technologies patiently so that we can prepare even better products with more affordability.

What are you doing to make Honda's hybrids more attractive?

We developed a simple one-motor hybrid system called IMA. The key to the success of IMA is how simple it is, how low the cost can be and how it can be made a natural part of the vehicle's system. I want to grow this technology as the most efficient, in terms of return on investment, and a technology to improve fuel economy.

We are also developing a hybrid system for larger-size vehicles with a goal to make it contribute not only to fuel economy but to the attractiveness of the products. The concept for this hybrid is significantly different.

You are introducing the larger hybrid system in 2012. What percentage of your global sales volume will be hybrid vehicles by 2015?

Maybe around 10 percent by 2015. Even after the bigger hybrids, sales aren't going to grow exponentially. The conventional gasoline engine will remain the mainstream. The volume for large-sized vehicles is not so large to begin with, so applying hybrid there won't bring about major change. The small-sized IMA system will remain the contributing factor.

If you look to 2015, I don't think there will be that much of an impact from rising fuel prices or more stringent regulations. But by around 2020, the social situation surrounding the market may be different, and probably carbon dioxide regulations will be made even more stringent.
How big is a big hybrid in Honda's view?

A hybrid system suitable for the class of vehicle equipped with a V-6 engine is called large size.

Obviously, we will further advance the conventional V-6-equipped vehicles for more power and fuel efficiency. But by adding a hybrid model, we will add a more powerful and more fuel-efficient option.

Honda also plans to overhaul its gasoline engine and transmission lineup starting in 2012. What are the key improvements?

Our products must impress customers with great engines, and thus, that is how we are developing our vehicles. But we are not ready to unveil what we are doing. It is a fact that we are accelerating the development of hybrid technology, where we were slightly behind, because it is a must-have item for the next era. However, hybrid sales will probably be only 10 percent of sales by 2015. Therefore, there is no doubt that the advancement of the conventional engine is important for our business.

What are your plans for positioning the Acura brand?

We are having a lot of discussions about Acura and which way it should be going. And what we confirmed is that the brand direction should be smart premium, not top tier.

Among the technologies we have at Honda, we must apply those that symbolize our advanced performance technology and environmental technology. We call this "smart." We agreed that smart premium is what we should be targeting with Acura, not the upper-segment vehicles such as Lexus or Mercedes-Benz. We must apply advanced technologies which make our vehicle more fun to drive, achieve a more comfortable drive and high environmental performance.

How is the stronger yen affecting Honda, and what are you doing?

The best risk-hedging approach is to establish a business structure focused not only on the United States and Japan but also on utilizing other production sites worldwide, meaning the rest of Asia, China, South America and other areas. Build a system where all those production sites complement each other with some of their local specialty products and locally sold products.

When you think foreign exchange rates, you need to take into consideration the yuan vs. the yen, the yen vs. the dollar, the baht vs. the dollar and so on. Traditionally, we have been concerned mostly with the U.S. dollar vs. the yen. But the proportional weight of those transactions in our global sales volume is getting lower.

Does that mean you might be importing more vehicles or components to Japan?

We have no definitive plans to do that, but we have imported vehicles before. About 15 years ago, we imported the Accord wagon from the United States. This was not due to foreign exchange considerations. It was done more to complement local products.

None of our plants has recovered to full production since the Lehman Brothers collapse and global financial crisis. The U.S. plants are probably at around 80 percent of capacity. Japan is probably around 70 percent to 80 percent. The same applies to other production sites in Asia except for China, which is operating close to full capacity.

Since the financial crisis, none of the sites have been overwhelmed by demand in excess of their capacity. Depending on how the foreign exchange situation continues, it is possible that we could import cars into Japan. This is nothing new to us. We have done this in the past.

What adjustments do you see in your U.S. production footprint in the near term?

The foreign exchange situation has the potential to change very dramatically, when we least expect it. It is very difficult to deal with. Currently, both Japan and the United States have excess production capacity. So if the foreign currency situation continues like this, there is a possibility that there could be a gradual shift of production to the United States. But I have no intention to bring about any sudden, dramatic changes.

What may be possible, for example, is this: We now produce the Accord in Japan and export some to the United States and other countries. But perhaps the portion that is going to other countries may eventually be sourced from the United States. That's something we are thinking about. It would also be good for the United States.

What change would you most like to see in the U.S. dealer network?

We have a good, strong U.S. dealer network, so I'm not thinking of changing anything specifically for 2011, 2012. What's most important is finding out and taking in what U.S. customers really find attractive in products, be it affordability or other features. We need to reinforce that in the early stage and build that into our products to further strengthen our brand identity. That is our first priority.

Source;
http://reviews.cnet.com/8301-13746_7-20022088-48.html

Honda and the Future of the Automobile

Summary of 2010 Mid-Year Honda CEO Speech

Providing good products to our customers with speed, affordability and low CO2 emissions

One year has passed since I acceded to the president of the company in June of last year, and we have entered into the stage where we need to draw up and execute a new growth strategy.

In the past several years, consumer preference has quickly shifted toward smaller sized vehicles in every automobile market around the world due to increasing environmental awareness on a global basis, as well as the structural changes that happened to the global economy. Honda must quickly respond to such changes in the times to achieve further growth and expansion in the future.

Our highest management priority is to establish a corporate structure that ensures a profit while we develop and commercialize advanced environmental technologies, strengthen our business in emerging markets and take prompt action to respond to the market shift toward small-sized vehicles.

Especially, as we are in the midst of a difficult business environment, nothing is more important than going back to Honda's basic principle, that is, to see things from the customer's view point, and continue offering products that please our customers.

Based on this understanding, Honda's "Direction for the next 10 years" was set. What I think is most important and the message I conveyed strongly to all Honda associates was "to provide good products to our customers with speed, affordability and low CO2 emissions."

By "good products" we mean to embody customers' wants and needs in attractive products using Honda's unique technologies, knowledge and ingenuity. Such good products must be delivered with speed without making our customers wait, and at affordable prices which make our customers happy with their purchase. This is the direction Honda will take.

"With low CO2 emissions" represents our conviction based on the strong sense of crisis that, as a manufacturer of personal mobility, Honda will have no future unless we achieve a significant reduction of CO2 emissions.

In order to provide good products with speed, affordability and low CO2 emissions, concrete measures will be taken with a focus on the following three core areas:
1) Advancement of environmental technologies
2) Strengthening of the manufacturing system and capability
3) Strengthening of business operations in emerging nations
Advancement of environmental technologies

Automobiles

・Honda has been reducing CO2 emissions through technological advancement of a wide range of products including motorcycles, automobiles and power products. Honda has also been committed to the reduction of its environmental footprint through its energy creation products such as solar panels and cogeneration systems.

・Honda will accelerate the effort to reduce its environmental footprint by advancing its environmental technologies and making even more effort to achieve widespread market introduction of such technologies.

Widespread market introduction of IMA Hybrid System

・Honda introduced new models equipped with Honda's original lightweight and compact IMA hybrid system, namely Insight and CR-Z. The percentage of hybrid vehicle sales among all Honda vehicle sales in Japan increased to 16% in 2009. Honda will accelerate widespread market introduction of IMA by enhancing the lineup of models equipped with the IMA system.

・Honda will introduce multiple models, mainly small-sized vehicles, equipped with the IMA system in Japan within approximately one year from now. The first one will be the Fit Hybrid which will be introduced to the Japanese market this fall.

・Honda will also pursue the advancement of battery technologies that are critical to the advancement of hybrid vehicles. The next-generation Civic Hybrid will be equipped with a high-output and compact lithium-ion battery, which will be supplied by Blue Energy, a joint venture company between GS Yuasa and Honda that will begin production of the battery at its plant in the latter half of this year.

・Honda has been devoting its company resources to the development of advanced environmental technologies. The results of such a strategy will start to be seen as products sometime around 2012.

Plug-in hybrid

・A new plug-in hybrid system for mid-size to larger vehicles is currently under development. Vehicles equipped with this new system are scheduled to go on sale in 2012 in Japan and the U.S.

・Honda will fulfill customer demand more precisely by developing and adopting multiple hybrid systems that are appropriate for vehicles of different sizes and uses.

Gasoline engine

・In the mid-term, internal combustion engines will remain as the main source of power for automobiles, and therefore Honda will continue advancing technologies to improve the performance and fuel economy of internal combustion engines. Honda will begin renewing its engine and transmission lineup starting in 2012 to further improve its fuel economy.

Diesel engine

・Diesel engines are also effective in reducing CO2 emissions. In addition to the currently available 2.2l engine, Honda is making progress in the development of a smaller diesel engine. A model equipped with this new smaller diesel engine will be introduced in Europe in 2012.

Fuel-cell electric vehicle
・In the long-term, fuel-cell electric vehicles will provide the ultimate mobility. And Honda will continue working on the technological advancement of the FCX Clarity as well as our hydrogen refueling systems.

Battery electric vehicle
・Though there still are some issues that need to be addressed such as range per charge and recharging time, battery EVs have the potential to create a new market as mobility that emits no CO2 during operation. Leveraging the technologies established through the development of fuel-cell electric vehicles, Honda will make progress in the development of a battery EV with a goal to put it in real world use as soon as possible. Honda's battery EV is scheduled to go on sale in Japan and the U.S. in 2012.

Honda will introduce these products by around 2012 and further advance them and accelerate their more widespread introduction to the market in the next 10 years.

Motorcycles

・Considering the current limitation of battery performance, a battery EV will fulfill customer needs in the form of electric motorcycles.

・In December of this year, Honda will begin lease sales of EV-neo to businesses and individual business owners in Japan. Honda will continue to advance the technologies and reduce costs to make it available to individual customers as promptly as possible.

・As a unique trend in the world's largest motorcycle market of China, the market for electric bicycles is rapidly growing there in addition to the market for the motorcycles equipped with gasoline engines Honda is planning to introduce a new product into this market in 2011.

・Honda will introduce electric motorcycles to both advanced and emerging nations, further improve product performance and cost competitiveness and strive to become a market leader in this field, as well.

Power products

・Honda will further advance its "energy creation products" such as solar panels and cogeneration systems to pursue their potential as the future household infrastructure.

Demonstration testing of the next-generation personal mobility

・At the Tokyo Motor Show last year, Honda proposed a concept for the future low-carbon mobility society that utilizes electromotive technologies. Honda will embody this concept and begin demonstration testing with the concept of "Honda Electric Mobility Synergy" in Japan and the U.S. within this year.

・In Japan, within this year, and conducted jointly with Kumamoto and Saitama prefecture where Honda already has some operations, Honda will begin the comprehensive demonstration testing of next-generation personal mobility that combines an energy supply infrastructure such as a solar-powered EV-refueling station with advanced environmentally-responsible vehicles such as the electric scooter EV-neo, plug-in hybrid vehicles, electric vehicles as well as other electromotive products such as the electric cart, Monpal. In addition, through the cooperation of the local community, Honda will study how future personal mobility should be designed to contribute to the improvement of the quality of life of local residents.

・In the U.S., starting by the end of this year, Honda will begin demonstration testing of automobile environmental technologies such as battery-electric vehicles and plug-in hybrid vehicles with participants including Stanford University, Google Inc. and the City of Torrance, California in separate testing under the Advanced Technology Demonstration Program.


Strengthening the manufacturing system and capability

Role of Japan

・Manufacturing technologies for advanced environmental technologies including electromotive technologies will be established and advanced in Japan where we have accumulated highly sophisticated manufacturing technologies and know how. In addition, further advancement of manufacturing technologies to accommodate the trend to make our products smaller will evolve from Japan to other parts of the world.

・Based on the recognition that the role played by Honda factories in Japan will become increasingly more important, Honda management has been discussing the roles our factories in Japan must play in the future.

・Honda factories in Japan will focus on the following three roles;
1) pursuit of manufacturing technologies for environmentally-responsible products and small-sized vehicles,
2) efficient production of the products to be sold in Japan and
3) strengthening the support functions for Honda plants outside of Japan.

・Based on this determination of the focus areas, the direction was determined for the two new plants in Japan where plans have been pending.

Yorii plant - which will become operation in 2013

・With a goal to begin production in 2013, Honda will resume preparation of the Yorii plant in Saitama. The Yorii plant will play a role not only to strengthen Honda's cost and quality competitiveness, but also to establish the necessary and highly sophisticated next-generation manufacturing technologies related to the production of environmentally-responsible products and low CO2 emissions production. Furthermore Yorii will be responsible for evolving such technologies to other Honda production operations around the world.

・The Yorii plant will create new value and innovative technologies which can be realized only at the Yorii plant and lead other Honda plants around the world as a state-of-the-art next-generation plant which pursues energy efficiency.

・Through various initiatives, including the introduction of a system which optimally controls the amount of energy used for production and the recycling of energy, the Yorii plant will strive to become an environmentally-responsible and advanced auto plant which reduces the amount of energy used to produce each vehicle by more than 30% compared to production at the existing Sayama plant.

・The Yorii plant will start with small-volume production of environmentally-responsible vehicles which requires highly sophisticated manufacturing technologies to mature its advanced technologies, then eventually increase production volume. Then Yorii will evolve such manufacturing technologies, that are keys to the next-generation of Honda, to other Honda operations around the world to achieve the global growth of Honda.

Starting production of mini-vehicles in Suzuka Factory and cancelling the construction of a new Yachiyo plant

・To accommodate the global shift toward smaller vehicles, Honda will begin production of mini-vehicles at its Suzuka Factory in 2012. Through mini-vehicle production at Suzuka Factory, Honda will establish manufacturing technologies that will contribute to the effort to reduce the bodyweight and cost of Honda's next-generation models.

・Such manufacturing technologies will be applied to small-sized vehicles, and then evolved from Suzuka to other Honda production operations around the world.

・Based on this decision, Yachiyo Industry decided to cancel the planned construction of a new Yachiyo plant. The mini-vehicle production at Yachiyo's existing plant will be continued.

Global production

・Based on its basic policy to build products close to the customer, Honda will further localize its production mostly in emerging markets.

・Honda will strengthen its cross-factory/cross-border supply system by increasing the flexibility of its manufacturing system. As a result, Honda will establish a solid manufacturing system which enables Honda to better respond to drastic changes in the market.

Strengthening business in emerging markets

・In emerging nations, where continuous growth is expected, Honda will leverage its strength of having access to a wider range of customers through its motorcycle, automobile and power products businesses and thoroughly be committed to deliver products that customers want with more speed and affordability.

Motorcycle business

Emerging nations

・In emerging nations, motorcycles are a part of people's daily lives, and giant markets with the overwhelming size of their populations have the potential to grow further and become key pillars of Honda's business.

・Today, key competitors in those markets are Chinese and Indian makers. In order for Honda to remain as a market leader, Honda must not only maintain the high attractiveness and quality of our products but also further improve cost competitiveness to match the low prices of these competitors.

・In addition to developing attractive products, Honda has been increasing its cost competitiveness by pursuing the thorough localization of production including local procurement of components and materials. As a result of more than 40 years of such continued effort, Honda's motorcycle production plant in Thailand has grown to be a production base of Honda's global models.

・Following the introduction of PCX, an all-new sports type model will be introduced first to the Thai market this fall, then to other markets around the world. Honda will increase the number of global models produced in Asia.

・To achieve further localization, production capacity will be expanded. In addition to the capacity expansions in India and Vietnam, Honda will expand its annual motorcycle production capacity in Indonesia to 4 million units by building a new plant with a capacity of 500,000 units, which will become operational in the latter half of 2011. Moreover, Honda will continue introducing new models to the market to accommodate the growth of the Indonesian market.

・After the completion of these capacity expansions, Honda's annual motorcycle production capacity in Asia (excluding Japan) will increase from the current approximately 16 million units to 18 million units by the end of 2011, enabling Honda to more quickly meet customer demand.

・By leveraging the economies of scale achieved by the annual production of 18 million units, Honda will make more progress in localizing all processes from development to procurement and production in order to further improve its competitiveness.

Advanced nations

・In advanced nations, the business environment is tough as the overall motorcycle market continues to shrink. However, Honda will leverage its competitiveness in Asia and create attractive products with more affordability. In doing so, Honda will strive to expand customer segments and revitalize the market.

・First, Honda will introduce a new mid-class model, which is expected to be a new benchmark for the FUN model category which is focused on recreational needs, to market around the world from next year.

・Unlike conventional FUN models which focus on high power output, the new model will utilize advanced technologies and ideas unique to Honda and highlight the joy of riding and ease of handling with some unique characteristics such as a dynamic ride with low-speed torque. By offering it at an affordable price, Honda will strive to make it a product that pleases more customers.

・With the introduction of FUN models, which offer new values and that more people feel familiar with and enjoy riding, Honda will create a new motorcycle market in advanced nations.

Nigeria

・In continuously growing African markets as well, Honda will leverage its competitiveness in Asia to expand sales.

・In Nigeria, the largest motorcycle market in Africa with the size of approximately 800,000 units annually, we can expect further expansion of a new market for motorcycles as an everyday means of transportation for individual consumers. Honda will launch a new 125cc model in mid-2011. China-made parts and components will be used to increase the cost competitiveness of the product, but at the same time the model will be appealing as it adequately fulfills customer requests.

・Honda will expand motorcycle sales for individual consumers in other African nations in addition to Nigeria.

Automobile business

・For automobile business as well, Honda will leverage the strength it has obtained through its localized motorcycle business in Asia.

・In order to be competitive in emerging nations where the market for small-sized vehicles is rapidly growing, Honda will further accelerate its effort to localize automobile production based on the concept to produce locally using locally produced dies, materials and components.

・In India, Honda is planning to introduce a new entry model vehicle in 2011 at a price less than 500,000 rupee.

・In Thailand, a new eco-car with an excellent level of fuel economy, based on the same vehicle to be introduced in India, will be introduced to the market in 2011. This vehicle is scheduled to be exported to other ASEAN nations as well.

Power products business

・In emerging nations, power products are even more closely involved in people's daily lives than motorcycles, and therefore explosive growth of the market can be expected.

・Especially in Africa where demand for generators is growing rapidly, Honda will aim to increase generator sales by offering attractive products at affordable prices while maximizing the use of its production base in China and India. In India, in addition to conventional generators, Honda will begin production of an inverter-equipped generator, which can be used for precision equipment such as medical equipment and requires a high level of technological capability to produce. This will be the first time inverter-equipped generators will be produced in India.

・In China, where mechanization of agriculture is taking place, Honda will become the first Japanese maker to begin local production of a small tiller. By leveraging its accumulated technological capabilities and knowhow, Honda will proactively cultivate new markets.

Conclusion

・The next 10 years will be very critical for Honda to survive in the midst of major changes in the times that include an increase in environmental awareness and changes in the global economic structure.

・Honda is totally committed to provide good products with speed, affordability and low CO2 emissions while viewing things from the viewpoint of our customers.

・To address the increase in environmental awareness, Honda will further advance its original and advanced environmental technologies and accelerate the more widespread market introduction of such technologies by offering them in attractive products.

・To address changes in the structure of the global economy, Honda will re-strengthen its capability as a manufacturer that is unique to Honda. This includes two primary areas; 1) strengthening business in emerging nations and 2) strengthening the competitiveness of Honda's small-sized vehicles.

・While executing these initiatives speedily, Honda will strengthen its corporate structure to achieve further growth and make another leap forward.

Source;
http://www.hondanews.eu/en/news/index.pmode/modul,detail,0,1539-DEFAULT,21,text,1/index.pmode

Inside Line's Take: Honda Future Vehicles

2011 Honda Accord: The upgrades on the 2011 Honda Accord coupe and sedan are a little more sedate than we expected. There's no six-speed transmission as we had hoped. Instead, Honda changed the gearing of the five-speed automatic to improve mileage. The four-cylinder models are now expected to get EPA ratings of 23 city and 34 highway mpg when equipped with the automatic transmission. The V6 automatic is expected to get 19 city and 30 highway mpg.

The rest of the 2011 Accord's changes are styling updates on the exterior and some minor changes to the interior. On the outside there's a new grille, revised bumper, updated wheel design and a new trunk lid. Interior upgrades include shift paddles for V6 coupes and USB ports on all coupes and some sedans. Revised climate controls are also part of this year's upgrades.

2014 Honda Accord: A full redesign of the Honda Accord will most likely arrive in the 2013 calendar year. Honda Accord Crosstour

2013 Honda Accord Crosstour: Honda's version of the Accord wagon should be ready for a refresh by 2012. Honda CR-V

2013 Honda CR-V: After some minor upgrades in 2010, expect to see a full redesign of the CR-V in 2012. Honda delayed work on the CR-V's underlying platform in 2009, so this redesign could come as late as 2013.

2011 Honda CR-Z: This hybrid sport coupe is scheduled to go on sale in the fall of 2010. It features a 122-horsepower hybrid drivetrain and a six-speed manual gearbox. Its EPA mileage estimates are 31 city and 37 highway.

2012 Honda Civic: The full redesign of the Honda Civic is not expected to arrive until early 2011 after some last-minute changes to the design of the platform. Unlike most Civic redesigns of the last couple decades, this Civic will actually be smaller on the outside compared to its predecessor. So far, the only prototypes spotted in public have been four-door hatchbacks, a body style sold in Europe but not in the U.S. Honda Element

2012 Honda Element: After mediocre sales, the Element was expected to die off when the current model was ready to retire, but Honda says it is now planning to release a full redesign in the next couple of years.

2017 Honda FCX Clarity: Honda's hydrogen-powered sedan is currently being offered to a select group of consumers as a demonstration vehicle. If an actual production version ever makes it to market, it's not likely to happen until 2016 at the earliest.

2011 Honda Fit: A hybrid version of the Fit was planned for release in late 2010. Honda officials have said publicly, however, that the company is struggling to deliver the car at an affordable price.

2012 Honda Insight: This hybrid hatchback has struggled in the marketplace so expect to see a midcycle refresh sooner than usual. Honda officials have said publicly that the car is too small for American tastes, but that's not likely to change until a full redesign arrives in the 2017-'18 timeframe.

2011 Honda Odyssey: A fully redesigned Honda Odyssey is scheduled to arrive in late 2010. The new Odyssey is roughly the same size as the current model and uses the same engine. Most of the changes were reserved for the interior that features seats that slide sideways, an onboard refrigerator and the latest in electronic connectivity. Honda Pilot

2012 Honda Pilot: Given that the Pilot just had a full redesign in 2009, a midcycle refresh probably won't arrive until 2011 at the earliest. Honda Ridgeline

2013 Honda Ridgeline: After a mild refresh in 2009, the Ridgeline should get a full redesign by 2012.

Source;

http://www.insideline.com/honda/future-vehicles.html

Summary of 2010 Mid-Year CEO Speech

07/20/2010 -
One year has passed since I acceded to the president of the company in June of last year, and we have entered into the stage where we need to draw up and execute a new growth strategy.

In the past several years, consumer preference has quickly shifted toward smaller sized vehicles in every automobile market around the world due to increasing environmental awareness on a global basis, as well as the structural changes that happened to the global economy. Honda must quickly respond to such changes in the times to achieve further growth and expansion in the future.

Our highest management priority is to establish a corporate structure that ensures a profit while we develop and commercialize advanced environmental technologies, strengthen our business in emerging markets and take prompt action to respond to the market shift toward small-sized vehicles.

Especially, as we are in the midst of a difficult business environment, nothing is more important than going back to Honda's basic principle, that is, to see things from the customer's view point, and continue offering products that please our customers.

Based on this understanding, Honda's "Direction for the next 10 years" was set. What I think is most important and the message I conveyed strongly to all Honda associates was "to provide good products to our customers with speed, affordability and low CO2 emissions."

By "good products" we mean to embody customers' wants and needs in attractive products using Honda's unique technologies, knowledge and ingenuity. Such good products must be delivered with speed without making our customers wait, and at affordable prices which make our customers happy with their purchase. This is the direction Honda will take.

"With low CO2 emissions" represents our conviction based on the strong sense of crisis that, as a manufacturer of personal mobility, Honda will have no future unless we achieve a significant reduction of CO2 emissions.

In order to provide good products with speed, affordability and low CO2 emissions, concrete measures will be taken with a focus on the following three core areas:

1) Advancement of environmental technologies
2) Strengthening of the manufacturing system and capability
3) Strengthening of business operations in emerging nations

Advancement of environmental technologies

Automobiles
Honda has been reducing CO2 emissions through technological advancement of a wide range of products including motorcycles, automobiles and power products. Honda has also been committed to the reduction of its environmental footprint through its energy creation products such as solar panels and cogeneration systems.

Honda will accelerate the effort to reduce its environmental footprint by advancing its environmental technologies and making even more effort to achieve widespread market introduction of such technologies.

Widespread market introduction of IMA Hybrid System
Honda introduced new models equipped with Honda's original lightweight and compact IMA hybrid system, namely Insight and CR-Z. The percentage of hybrid vehicle sales among all Honda vehicle sales in Japan increased to 16% in 2009. Honda will accelerate widespread market introduction of IMA by enhancing the lineup of models equipped with the IMA system.

Honda will introduce multiple models, mainly small-sized vehicles, equipped with the IMA system in Japan within approximately one year from now. The first one will be the Fit Hybrid which will be introduced to the Japanese market this fall.

Honda will also pursue the advancement of battery technologies that are critical to the advancement of hybrid vehicles. The next-generation Civic Hybrid will be equipped with a high-output and compact lithium-ion battery, which will be supplied by Blue Energy, a joint venture company between GS Yuasa and Honda that will begin production of the battery at its plant in the latter half of this year.

Honda has been devoting its company resources to the development of advanced environmental technologies. The results of such a strategy will start to be seen as products sometime around 2012.

Plug-in hybrid
A new plug-in hybrid system for mid-size to larger vehicles is currently under development. Vehicles equipped with this new system are scheduled to go on sale in 2012 in Japan and the U.S.
Honda will fulfill customer demand more precisely by developing and adopting multiple hybrid systems that are appropriate for vehicles of different sizes and uses.

Gasoline engine
In the mid-term, internal combustion engines will remain as the main source of power for automobiles, and therefore Honda will continue advancing technologies to improve the performance and fuel economy of internal combustion engines. Honda will begin renewing its engine and transmission lineup starting in 2012 to further improve its fuel economy.

Diesel engine
Diesel engines are also effective in reducing CO2 emissions. In addition to the currently available 2.2l engine, Honda is making progress in the development of a smaller diesel engine. A model equipped with this new smaller diesel engine will be introduced in Europe in 2012.

Fuel-cell electric vehicle
In the long-term, fuel-cell electric vehicles will provide the ultimate mobility. And Honda will continue working on the technological advancement of the FCX Clarity as well as our hydrogen refueling systems.

Battery electric vehicle
Though there still are some issues that need to be addressed such as range per charge and recharging time, battery EVs have the potential to create a new market as mobility that emits no CO2 during operation. Leveraging the technologies established through the development of fuel-cell electric vehicles, Honda will make progress in the development of a battery EV with a goal to put it in real world use as soon as possible. Honda's battery EV is scheduled to go on sale in Japan and the U.S. in 2012.

Honda will introduce these products by around 2012 and further advance them and accelerate their more widespread introduction to the market in the next 10 years.

Motorcycles
Considering the current limitation of battery performance, a battery EV will fulfill customer needs in the form of electric motorcycles.

In December of this year, Honda will begin lease sales of EV-neo to businesses and individual business owners in Japan. Honda will continue to advance the technologies and reduce costs to make it available to individual customers as promptly as possible.

As a unique trend in the world's largest motorcycle market of China, the market for electric bicycles is rapidly growing there in addition to the market for the motorcycles equipped with gasoline engines Honda is planning to introduce a new product into this market in 2011.

Honda will introduce electric motorcycles to both advanced and emerging nations, further improve product performance and cost competitiveness and strive to become a market leader in this field, as well.

Power products
Honda will further advance its "energy creation products" such as solar panels and cogeneration systems to pursue their potential as the future household infrastructure.

Demonstration testing of the next-generation personal mobility
At the Tokyo Motor Show last year, Honda proposed a concept for the future low-carbon mobility society that utilizes electromotive technologies. Honda will embody this concept and begin demonstration testing with the concept of "Honda Electric Mobility Synergy" in Japan and the U.S. within this year.

In Japan, within this year, and conducted jointly with Kumamoto and Saitama prefecture where Honda already has some operations, Honda will begin the comprehensive demonstration testing of next-generation personal mobility that combines an energy supply infrastructure such as a solar-powered EV-refueling station with advanced environmentally-responsible vehicles such as the electric scooter EV-neo, plug-in hybrid vehicles, electric vehicles as well as other electromotive products such as the electric cart, Monpal. In addition, through the cooperation of the local community, Honda will study how future personal mobility should be designed to contribute to the improvement of the quality of life of local residents.

In the U.S., starting by the end of this year, Honda will begin demonstration testing of automobile environmental technologies such as battery-electric vehicles and plug-in hybrid vehicles with participants including Stanford University, Google Inc. and the City of Torrance, California in separate testing under the Advanced Technology Demonstration Program.

Strengthening the manufacturing system and capability

Role of Japan
Manufacturing technologies for advanced environmental technologies including electromotive technologies will be established and advanced in Japan where we have accumulated highly sophisticated manufacturing technologies and know how. In addition, further advancement of manufacturing technologies to accommodate the trend to make our products smaller will evolve from Japan to other parts of the world.

Based on the recognition that the role played by Honda factories in Japan will become increasingly more important, Honda management has been discussing the roles our factories in Japan must play in the future.

Honda factories in Japan will focus on the following three roles; 1) pursuit of manufacturing technologies for environmentally-responsible products and small-sized vehicles, 2) efficient production of the products to be sold in Japan and 3) strengthening the support functions for Honda plants outside of Japan.

Based on this determination of the focus areas, the direction was determined for the two new plants in Japan where plans have been pending.

Yorii plant - which will become operation in 2013
With a goal to begin production in 2013, Honda will resume preparation of the Yorii plant in Saitama. The Yorii plant will play a role not only to strengthen Honda's cost and quality competitiveness, but also to establish the necessary and highly sophisticated next-generation manufacturing technologies related to the production of environmentally-responsible products and low CO2 emissions production. Furthermore Yorii will be responsible for evolving such technologies to other Honda production operations around the world.

The Yorii plant will create new value and innovative technologies which can be realized only at the Yorii plant and lead other Honda plants around the world as a state-of-the-art next-generation plant which pursues energy efficiency.

Through various initiatives, including the introduction of a system which optimally controls the amount of energy used for production and the recycling of energy, the Yorii plant will strive to become an environmentally-responsible and advanced auto plant which reduces the amount of energy used to produce each vehicle by more than 30% compared to production at the existing Sayama plant.

The Yorii plant will start with small-volume production of environmentally-responsible vehicles which requires highly sophisticated manufacturing technologies to mature its advanced technologies, then eventually increase production volume. Then Yorii will evolve such manufacturing technologies, that are keys to the next-generation of Honda, to other Honda operations around the world to achieve the global growth of Honda.

Starting production of mini-vehicles in Suzuka Factory and cancelling the construction of a new Yachiyo plant

To accommodate the global shift toward smaller vehicles, Honda will begin production of mini-vehicles at its Suzuka Factory in 2012. Through mini-vehicle production at Suzuka Factory, Honda will establish manufacturing technologies that will contribute to the effort to reduce the bodyweight and cost of Honda's next-generation models.

Such manufacturing technologies will be applied to small-sized vehicles, and then evolved from Suzuka to other Honda production operations around the world.

Based on this decision, Yachiyo Industry decided to cancel the planned construction of a new Yachiyo plant. The mini-vehicle production at Yachiyo's existing plant will be continued.

Global production
Based on its basic policy to build products close to the customer, Honda will further localize its production mostly in emerging markets.

Honda will strengthen its cross-factory/cross-border supply system by increasing the flexibility of its manufacturing system. As a result, Honda will establish a solid manufacturing system which enables Honda to better respond to drastic changes in the market.

Strengthening business in emerging markets
In emerging nations, where continuous growth is expected, Honda will leverage its strength of having access to a wider range of customers through its motorcycle, automobile and power products businesses and thoroughly be committed to deliver products that customers want with more speed and affordability.

Motorcycle business

Emerging nations
In emerging nations, motorcycles are a part of people's daily lives, and giant markets with the overwhelming size of their populations have the potential to grow further and become key pillars of Honda's business.

Today, key competitors in those markets are Chinese and Indian makers. In order for Honda to remain as a market leader, Honda must not only maintain the high attractiveness and quality of our products but also further improve cost competitiveness to match the low prices of these competitors.

In addition to developing attractive products, Honda has been increasing its cost competitiveness by pursuing the thorough localization of production including local procurement of components and materials. As a result of more than 40 years of such continued effort, Honda's motorcycle production plant in Thailand has grown to be a production base of Honda's global models.

Following the introduction of PCX, an all-new sports type model will be introduced first to the Thai market this fall, then to other markets around the world. Honda will increase the number of global models produced in Asia.

To achieve further localization, production capacity will be expanded. In addition to the capacity expansions in India and Vietnam, Honda will expand its annual motorcycle production capacity in Indonesia to 4 million units by building a new plant with a capacity of 500,000 units, which will become operational in the latter half of 2011. Moreover, Honda will continue introducing new models to the market to accommodate the growth of the Indonesian market.

After the completion of these capacity expansions, Honda's annual motorcycle production capacity in Asia (excluding Japan) will increase from the current approximately 16 million units to 18 million units by the end of 2011, enabling Honda to more quickly meet customer demand.

By leveraging the economies of scale achieved by the annual production of 18 million units, Honda will make more progress in localizing all processes from development to procurement and production in order to further improve its competitiveness.

Advanced nations
In advanced nations, the business environment is tough as the overall motorcycle market continues to shrink. However, Honda will leverage its competitiveness in Asia and create attractive products with more affordability. In doing so, Honda will strive to expand customer segments and revitalize the market.

First, Honda will introduce a new mid-class model, which is expected to be a new benchmark for the FUN model category which is focused on recreational needs, to market around the world from next year.

Unlike conventional FUN models which focus on high power output, the new model will utilize advanced technologies and ideas unique to Honda and highlight the joy of riding and ease of handling with some unique characteristics such as a dynamic ride with low-speed torque. By offering it at an affordable price, Honda will strive to make it a product that pleases more customers.

With the introduction of FUN models, which offer new values and that more people feel familiar with and enjoy riding, Honda will create a new motorcycle market in advanced nations.

Nigeria
In continuously growing African markets as well, Honda will leverage its competitiveness in Asia to expand sales.

In Nigeria, the largest motorcycle market in Africa with the size of approximately 800,000 units annually, we can expect further expansion of a new market for motorcycles as an everyday means of transportation for individual consumers. Honda will launch a new 125cc model in mid-2011. China-made parts and components will be used to increase the cost competitiveness of the product, but at the same time the model will be appealing as it adequately fulfills customer requests.

Honda will expand motorcycle sales for individual consumers in other African nations in addition to Nigeria.

Automobile business
For automobile business as well, Honda will leverage the strength it has obtained through its localized motorcycle business in Asia.

In order to be competitive in emerging nations where the market for small-sized vehicles is rapidly growing, Honda will further accelerate its effort to localize automobile production based on the concept to produce locally using locally produced dies, materials and components.

In India, Honda is planning to introduce a new entry model vehicle in 2011 at a price less than 500,000 rupee.

In Thailand, a new eco-car with an excellent level of fuel economy, based on the same vehicle to be introduced in India, will be introduced to the market in 2011. This vehicle is scheduled to be exported to other ASEAN nations as well.

Power products business
In emerging nations, power products are even more closely involved in people's daily lives than motorcycles, and therefore explosive growth of the market can be expected.

Especially in Africa where demand for generators is growing rapidly, Honda will aim to increase generator sales by offering attractive products at affordable prices while maximizing the use of its production base in China and India. In India, in addition to conventional generators, Honda will begin production of an inverter-equipped generator, which can be used for precision equipment such as medical equipment and requires a high level of technological capability to produce. This will be the first time inverter-equipped generators will be produced in India.

In China, where mechanization of agriculture is taking place, Honda will become the first Japanese maker to begin local production of a small tiller. By leveraging its accumulated technological capabilities and knowhow, Honda will proactively cultivate new markets.
Conclusion

The next 10 years will be very critical for Honda to survive in the midst of major changes in the times that include an increase in environmental awareness and changes in the global economic structure.

Honda is totally committed to provide good products with speed, affordability and low CO2 emissions while viewing things from the viewpoint of our customers.

To address the increase in environmental awareness, Honda will further advance its original and advanced environmental technologies and accelerate the more widespread market introduction of such technologies by offering them in attractive products.

To address changes in the structure of the global economy, Honda will re-strengthen its capability as a manufacturer that is unique to Honda. This includes two primary areas;
1) strengthening business in emerging nations and
2) strengthening the competitiveness of Honda's small-sized vehicles.

While executing these initiatives speedily, Honda will strengthen its corporate structure to achieve further growth and make another leap forward.

Source;
http://www.hondanews.com/categories/1097/releases/5528

Honda to focus on hybrids, drop microcar plant-paper-UPDATE 1

* Planned green car factory may start ops in 2013-Nikkei

* Honda to stop developing commercial minivehicles-Nikkei

* Honda to announce medium-term strategy next week

* Honda shares down 0.9 pct, in line with market (Adds background, company comment)

TOKYO, July 15 (Reuters) - Honda Motor Co, Japan's No.2 automaker, will drop plans to build a new minivehicle factory and focus on its green vehicles business, the Nikkei business daily reported on Thursday.

Soon after the global financial crisis hit in 2008, Honda had announced plans to delay construction of the Yorii factory, north of Tokyo, and a plant for 660cc minivehicles at subsidiary Yachiyo Industry Co, both originally scheduled to start production in 2010.

Honda had initially planned to build clean-diesel and other fuel-saving vehicles at the Yorii factory, but has since abandoned the development of clean diesel engines, planning instead to come up with a new hybrid system to boost fuel economy on its bigger vehicles.

A Honda spokeswoman declined to confirm the report.

The Nikkei said the Yorii factory would likely begin production in 2013, in line with Honda's latest plan to start in or after 2012.

The paper also said Honda would review its strategy on minivehicles, with a market limited to Japan. Honda, which had earmarked about 50 billion yen ($565 million) to build the minivehicle plant in western Japan, plans to stop developing commercial-use minivehicles to narrow its product line, the paper said.

Honda Chief Executive Takanobu Ito, who took his post about a year ago, has said he wanted to accelerate the roll-out of hybrid cars as environmental regulations tighten around the world. He is scheduled to brief on Honda's medium-term strategy at a news conference next Tuesday.

Source;
http://www.forexyard.com/en/news/Honda-to-focus-on-hybrids-drop-microcar-plant-paper-2010-07-15T001915Z-UPDATE-1

Whatever happened to Fuel Cell automobiles promised in 2010?

In the past seven or eight years the world’s carmakers have had a few distractions, which have taken up quite a bit of time: new hybrid models; diesels, electric cars — plug-ins, and a couple bankruptcies.

There is a new target introduction date for fuel cells: 2015.

All the major manufacturers have spent billions of dollars, along with the federal government, of course, in fuel cell research and development. There have been significant technological improvements since BMW, General Motors, Ford, Honda and Toyota began road testing prototypes, according to a report in Automotive News:

Automakers have been able to reduce the fuel cell’s size by as much as 50 percent, compared with units they were testing a few years ago. They have also reduced the cost of some of the highest-cost parts, such as platinum.

The fuel cell powertrain consists of four elements:
1) A tank that stores hydrogen.
2) A fuel cell stack that converts by hydrogen and oxygen into heat and water, creating electricity.
3) Lithium ion batteries that store the electricity.
4) A power unit that controls the flow of electricity to the electric motors.

The Automotive News article added, “Unlike a battery-powered vehicle that can take six, seven, eight hours to recharge, a hydrogen refill takes 3.5 minutes. Also, while a battery-powered vehicle has a range of about 100 miles (40 miles on a Chevrolet Volt), depending on conditions, Honda’s Clarity, a mid-sized sedan, can travel 240 miles on hydrogen. GM expects 300 miles for its fuel cell car.”

Automakers say electric vehicles powered by fuel cells compare well with internal combustion engines with calalytic converters:
• More than twice as efficient
• Comparable precious-metal content
• Compare durability
• Compare range — about 300 miles
• Comparable performance
• 60 percent fewer parts
• 90 percent fewer moving parts
• Zero emissions
• Zero petroleum
• Cold and hot weather capability
• Make family-sized vehicles possible
• Fast refueling

The push for fuel cells also is charged by automakers’ realization that hybrid plug-in, hybrid and battery-powered vehicles collectively will be unable to meet stiffer CO2 regulations later this decade, according to the report.

There are still major drawbacks to fuel cell vehicles, however. The present system of producing petroleum products and moving the fuel to the pump is inadequate for fuel cells.

GM is tackling the problem in a partnership in Hawaii with The Gas Co. The utility plans to tap into its 1,000-mile utility pipeline system, separate the hydrogen from the synthetic natural gas and sell the hydrogen to refueling nations in Hawaii. The cost to add hydrogen fueling equipment is expected to be $300,000 to $500,000 per pump.

Safety is the No. 1 issue. Think of millions of cars and trucks running around with hydrogen tanks attached. High-pressure tanks resistant to puncture, along with frames that hold the tanks, will be required.

Anyway, “We will come to the market in 2015,” said Bill Reinert, national manager of advanced vehicles at Toyota Motor Sales U.S.A. Inc.

Charlie Greese, executive director of GM’s global fuel cell activities is equally encouraging.

“Several thousand fuel cell vehicles from GM are conceivable in 2015,” but he will not estimate a price.

I can’t wait!

Source;
http://www.postandcourier.com/news/2010/jul/10/whatever-happened-fuel-cell-automobiles-promised-2/

Honda Perspective - It's a Never-ending Challenge

Kurt Antonius
Assistant Vice President, Honda Public Relations
American Honda MoCo., Inc. 7/7/2010

It is not corporate hubris that tells us people have very high expectations for the Honda brand.

It is acknowledging the obvious. And that's not a lament. What we call our "Challenging Spirit" is alive and well - and we welcome the challenge to exceed the "high bar" we have set for ourselves.

Even on those occasions when media or customers express their frustration that we haven't met their expectations, we realize that it's recognition of our history of innovation and focusing on the customer that has always challenged our industry to move in positive new directions. Honda continues to prioritize advancing power train technologies, fuel efficiency, more ergonomic and customer-friendly interiors, and we've always focused on developing vehicles that are fun to drive and fun to own.

We also understand that speculation - in the world of politics, athletics and, yes, the auto industry - has become something of a sport. People look at one or two data points and quickly jump to a conclusion -- forecasting gloom and doom or crowning the latest champion - whether or not the facts support that view.

Importantly, in today's 24/7 news environment, such viewpoints can quickly be perceived as reality - unless you dispel the myths and false assumptions. So, let's begin by addressing some of the concern about Honda's ability to rise to the challenge of new competition and the requirement for product innovation.

First of all, there are many ways to spin sales numbers, but here are a few facts:

-Accord is one of the industry's best selling cars in 2010 - probably THE best-selling to retail customers.
-CR-V remains the best-selling utility vehicle in America, 3+ years and running.
-Odyssey, in its 5th year on the market, remains an award-winning customer favorite.
-Civic, in its 5th year on the market, saw sales go up 26% in June and is up more than 13% for the year.

To provide further context, you simply can't do an apples-to-apples comparison of industry sales without considering that some competitors have increasingly turned to fleet sales (selling to rental car companies) and direct cash incentives to customers in order to boost sales volume, while Honda has achieved solid sales gains in 2010 without resorting to either tactic.

We don't begrudge anyone doing what they must to move their metal. But we don't sell to fleets and we don't offer cash to customers - because these short term strategies would negatively impact the value of the vehicles in our customers' driveways. Call us crazy, but Honda will continue to rely on retail customers to make informed purchase decisions - and we'll continue to protect the value of their investments.

You can also see this focus on the customer in our focus on quality. In the J.D. Power & Associates 2010 Initial Quality Study, Acura ranked 2nd overall, with Honda 6th - and both Accord and Accord Crosstour were #1 in their segments.

Another myth to dispel is the notion that the delay in the introduction of the next-generation Civic - due out in 2011 - is indication of a hasty decision made in recent days based on present market conditions. As first reported by Automotive News in October 2009, our decision to delay the new Civic launch was made several years ago, not as a knee-jerk response to the current sales situation. And what is a "delay," anyway, when our primary objective is to deliver the best possible product to our customers?

We're confident in our strategy for the next-generation Civic. But the reality is that it is the success of the current model that enabled us to consider changing the launch timing of the upcoming model. The current Civic continues to offer customers a very competitive combination of style, fuel economy, safety and value - and Civic's current sales numbers support the point.

Which brings this discussion back to the only thing that really matters - what customers want.

The auto industry has emerged from arguably its toughest 24 months ever. What does this mean? Customers pushed the pause button on purchases. They reprioritized, and while they're recovering, they're moving with new cautiousness in prioritizing new purchase considerations.

We're all collectively working to understand what customers now want and need. But the reality is that customers don't "need" specific technologies. They need affordable products that provide the performance and comfort they desire, with higher fuel economy levels that help them cope with escalating fuel prices and that reduce the threat of global warming.

Toward this end:

A stylish, all-new 2011 Honda Odyssey debuts this fall with a V-6 engine that offers higher fuel economy than a top competitor's 4-cylinder minivan.

Accord, already the #1 midsize sedan in 2010 IQS, will debut a revised 2011 model in August, with up to 3 mpg higher fuel economy.

CR-Z, a genre-busting sport hybrid model, debuts next month - available to customers chock full of content for less than $20,000.

The marketplace has and will continue to evolve. But our focus on creating real, new value for our customers through innovation and original thinking remains unchanged. And we are accelerating our efforts to develop and deploy new technologies and business strategies that will continue to show that Honda remains a leader in our industry.

Source;
http://autonews.gasgoo.com/auto-news/1015915/honda-to-make-accord-hybrid-in-china-soon.html