Civic hybrid tests Honda's new strategy

Despite being the first to sell an electric-gasoline car in the United States and making hybrid technology a centerpiece of its fuel economy push, Honda Motor Co. has yet to have a hybrid hit.

But the redesigned Civic Hybrid, launched April 20, is the first test of whether Honda's new strategy of tapping lithium ion batteries and, later, two-motor systems can break the streak.

Past Honda hybrids have fallen short on fuel economy, as the Insight did against the Toyota Prius, or on power, as the short-lived Honda Accord hybrid fared against nonhybrid rivals.

Honda's new hybrid plan aims to fix both problems.

The first improvement is using lithium ion batteries, made by Blue Energy Co., a joint venture between Honda and GS Yuasa Corp. The goal is to save weight and space, while increasing fuel economy. But the new batteries are costly.

The new Civic's lithium battery weighs 48.5 pounds, compared with 69 pounds for its predecessor's nickel-metal hydride battery. That helps the new Civic Hybrid get 44 mpg in both city and highway driving , edging the previous generation's EPA rating of 40 city/43 highway.

The updated hybrid also gets a lighter, more powerful electric motor, with output increased to 17 kilowatts, from 15 kilowatts. It also offers more cabin space.

Its sticker starts at $24,800, including shipping, just $100 more than the earlier version's base price. But the Civic's sticker tops the Prius' base price of $22,880, including shipping.

So far sales have been sluggish. That is due in part to limited availability of the Japan-made hybrid because of earthquake-induced supply chain disruptions. Through May, Honda sold only 389 new Civic Hybrids in the United States, less than 1 percent of all Civics sold in that period. In 2010, hybrids accounted for 3 percent of the 260,218 Civics sold.

But slashing costs eventually will be key to driving sales higher.

"Toyota has already reduced the cost of its hybrid system over several years," says Toru Hatano, a powertrain analyst at IHS Global Insight in Tokyo. "But Honda is launching a whole new system, so we can expect their costs to be higher in the near term."

Honda also will install lithium ion batteries in a new two-motor hybrid system debuting next year in the United States for mid-sized plug-in hybrids.

Honda hasn't said what car gets it first. But engineers are testing the system in an Accord. A suitcase-sized lithium ion battery pack sits behind the back seat, eating trunk space.

An engineer involved with the project said testing is expected to continue through year end, and the company must decide if the 15-mile range in electric-only mode is sufficient. If user feedback suggests more range is needed, Honda will have to make the battery bigger or cut the car's weight, he said.

"We think a 15 mile range satisfies about 70 percent of the users," he said.

Already, Honda has tweaked the plug-in version of the Accord with an aluminum hood and other weight shavings. But the plug-in still weighs 330 pounds more than its gasoline counterpart.

Honda is rolling out the new hybrid system to counter criticism that its current technology is too weak to provide extended electric-only travel. The Integrated Motor Assist system used in the Insight, Civic and CR-Z hybrids uses the electric motor mostly to assist the gasoline engine.

The new system uses one traction motor to move the car and one generator motor to recharge the battery. The former, a 120-kilowatt motor, is combined with a 2.0-liter, four cylinder engine and continuously variable transmission.

The car has a top speed of 62 mph in electric-only mode, but a big question will be how far it can travel at that speed. The Accord plug-in hybrid can recharge in four hours from a 100-volt source or in 1.5 hours from a 200-volt source, the engineer said.

Honda President Takanobu Ito said last fall that the new hybrid system for larger vehicles will give electric-gasoline drivetrains a bigger slice of Honda's global sales -- pushing hybrids to around 10 percent of global sales by 2015, from less than 5 percent in 2009.

The electrified powertrains also will feature prominently in the Acura lineup, Ito said, reinforcing what he calls the "smart premium" image to which the brand aspires.
Source;
http://www.autoweek.com/article/20110606/CARNEWS/110609917#ixzz1Ob4yjDH4

Honda president's earthquake report

Boss gets on his bike to see the damage first-hand

Honda's CEO and president, Takanobu Ito, has revealed that he used his bike to reach the firm's damaged facilities in the aftermath of the Japanese earthquake and tsunami.

In his personal report on the situation, Ito said:

“In the Tochigi prefecture, there are many Honda facilities including the Automobile R&D Center, an office for the purchasing division, a parts plant and Honda Engineering Co., Ltd., which develops production technologies. Shortly after the earthquake, I rode my motorcycle to visit each of these facilities to check the level of damage. With fallen ceilings and walls and other damage, none of these facilities were in a condition to resume operations immediately. I realized it would not be an easy effort to recover these facilities.

“The purchasing division, whose head office in Tochigi was damaged, set up an emergency satellite office within Saitama Factory and began checking situation all of our suppliers including second and third tier suppliers and investigating the impact of the earthquake on the parts supply. Associates at the purchasing division are pursuing the necessary measures for every single part that was impacted toward the recovery of overall parts supply.

“The Automobile R&D Center set up satellite offices within the plants and other offices as it will take some time to restore its building and facility. After establishing a telecommunications network infrastructure at each office, the team resumed development operations on March 28. The development of mass-production models requires a lot of coordinated work with production plants; therefore, in hindsight, I am expecting that the team will be able to work more efficiently by being close to the production site.

“In the three weeks since the earthquake, we have worked to achieve the ability to resume our operations and we will resume production of finished units of automobiles at the Saitama and Suzuka factories on April 11. This means all Honda production plants in Japan will be in operation as of that date. However, as the parts supply situation remains fluid, production of component parts and vehicles in Japan will be at approximately 50% of the original production plan for the time being, and we have reduced production volume at some plants outside of Japan.

“We will strive to get back to normal operation as soon as possible by stabilizing the parts supply while also considering other options including changing the model mix at some production plants. We will also bring the pace of automobile development back to where it was before the earthquake by using R&D facilities in Tochigi as they are ready to resume operations, as well as the temporary satellite offices.

“The other day, I visited affected suppliers and dealers in Tohoku and saw them working hard day and night to resume their operations under conditions beyond my imagination. We will devote ourselves to support our suppliers and dealers to resume their stable parts production and services to our customers as soon as possible.

“We, the Honda Group, will go all out to overcome this difficult time and recover our business as soon as possible, which will also be a contribution to the recovery of the Japanese economy as well.”

Source;

http://www.visordown.com/motorcycle-news-industry/honda-presidents-earthquake-report/17777.html

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

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’s Ito Defends Efficiency Lead as Hyundai Gains

By Makiko Kitamura and Alan Ohnsman
June 23 (Bloomberg) -- Takanobu Ito became a star at Honda Motor Co. with his work on the NSX sports car, the company’s most powerful model. Now, as chief executive officer, he’s focusing on fuel efficiency as Ford Motor Co. and Hyundai Motor Co. threaten Honda’s leading position in North America.

While Honda’s fleet is rated the most fuel-efficient in the U.S., Ford’s Fiesta subcompact gets up to 33 miles per gallon in combined city/highway driving, compared with 31 mpg for Honda’s rival Fit hatchback. Hyundai’s Sonata sedan tops Honda’s top- selling Accord in economy and horsepower, and its revamped Elantra compact promises to use less fuel than Honda’s Civic.

“Ford is coming back, and Hyundai is gaining market share,” said Tadashi Usui, an analyst at Moody’s K.K. in Tokyo. “The gap between Japanese automakers and rivals is shrinking.”

Honda, after axing its V-10 NSX supercar project in 2008, is redoubling efforts to boost fuel efficiency to fend off growing competition. Ito delayed the release of a revamped Civic compact after telling engineers he was unhappy with its size and fuel economy, said Tomohiko Kawanabe, president of Honda’s research and development unit.

Even as factors including pricing and design shape research efforts, “fuel efficiency has become the first priority in our discussions,” Kawanabe said in an interview at Honda’s research center last month in Wako, west of Tokyo.

Risking Reputation
Honda’s U.S. sales gained 13 percent in the first five months of 2010, trailing industry growth of 17 percent. Ford’s rose 31 percent in the same period, while Hyundai’s sales grew 23 percent.

Japan’s second-largest carmaker has focused on only mild improvements in fuel economy recently, risking its “green” reputation, said Ed Kim, an industry analyst at AutoPacific Inc. in Tustin, California. For example, Honda uses 5-speed automatic transmissions as the industry adopted more efficient 6-speeds, and seems reluctant to use direct-injection and turbocharging technology, Kim said.

“Even before the green thing was big, they were into green,” said Kim, a former Hyundai product planner. “Over the last few years, they’ve been completely leapfrogged in new engine technologies.”

Honda’s U.S. fleet of Honda and Acura 2009 models averaged 23.6 mpg in the U.S. Environmental Protection Agency’s fuel efficiency assessment, adjusted for real-world driving.

Hyundai- Kia group vehicles were second in the 2009 model-year survey, averaging 23.4 mpg.

Hyundai models alone, excluding those of Kia Motors Corp., exceeded Honda’s fleet with an adjusted average of 23.9 mpg, according to EPA.

Depositary Shares
Toyota Motor Corp. had an adjusted fleet average of 23.2 mpg, and Ford, with a 20.5 mpg fleet, ranked seventh.

Honda’s American depositary receipts, each representing one ordinary share, fell 9 cents to $29.90 at 4:15 p.m. in New York Stock Exchange composite trading, have dropped 12 percent this year. The shares fell 1.5 percent to close at 2,720 yen in Tokyo.

Another motivation for Honda to raise vehicle efficiency is a U.S. regulation forcing an industrywide increase by model year 2016. Honda’s fleet must average 37.4 mpg by that time, a 50 percent improvement from about 26 mpg now, John Mendel, head of Honda’s U.S. sales operation, said June 8.

The global recession following the collapse of Lehman Brothers Holdings Inc. in September 2008 also spurred Honda’s strategic shift, said Ito, who became CEO a year ago.

“In a certain sense, Lehman was a blessing,” Ito said in Tokyo last month
.
Unlike before the recession, price increases are tough to justify and vehicle size and fuel economy need to “conform to these times,” Kawanabe said.

Prius Competition
Expanding Honda’s line of hybrid cars is part of the strategy. Honda plans to introduce a new hybrid Civic with a lithium-ion battery that can store twice the power of a nickel- metal hydride battery, Kawanabe said. The company will unveil a new hybrid version of the Fit later this year.

Honda’s Insight and Civic hybrids haven’t gained ground on Toyota’s Prius, the world’s top-selling hybrid. The Prius outsold the Insight 6-to-1 in the U.S. this year through May.

One reason may be fuel economy. Toyota’s hybrid gets 51 mpg in city driving, while the Insight gets 40 mpg. Honda Executive Vice President Koichi Kondo also said the Insight, a compact model in the U.S. compared with the midsize Prius, may be too small for Americans.

The company is also exploring stop-start technology, turbochargers and expanding continuously variable transmissions to boost fuel efficiency, said Hiroshi Ataka, a Tokyo-based analyst at consulting company IHS Global Insight.

Favoring Hydrogen Power
While Honda is researching electric cars, it’s less optimistic about demand for them than Nissan is and favors hydrogen-powered cars as the ultimate zero-emission vehicle.

Honda set up a lithium-ion battery venture with GS Yuasa Corp. and can shift gears quickly if necessary, Ataka said.

The company stopped producing the NSX supercar, its fastest production model, in 2005. It planned to reintroduce it this year. Instead, it built the low-priced, sporty CR-Z hybrid that arrives in the U.S. in August.

As a young engineer Ito consulted bullet-train designers to develop an all-aluminum body for the first-generation NSX when superiors considered the notion impossible, according to a company publication.

“I love sports cars,” Ito said at the Beijing Motor Show in April. “But we have to watch the economic situation and our purse strings.”

Source;
http://www.businessweek.com/news/2010-06-23/honda-s-ito-defends-efficiency-lead-as-hyundai-gains.html

Honda CEO “Not Satisfied” With Automaker’s Recent Performance

Honda CEO Takanobu Ito criticized the “complacent” nature of his company at the Beijing Auto Show, taking aim at poor sales figures, a lack of product direction and a need to focus on improving the company’s hybrid systems.
Honda’s market share slid by 0.4 percent, with Ito citing the disappointing sales of the Insight hybrid as a particular sore spot. In Insight has been pitched as an alternative to the Prius, but poor reviews, lower fuel economy numbers and the lack of cachet surrounding the vehicle has seen the Insight get trounced in the sales race, with Toyota selling 5 times as many Prius hybrids.

The most surprising part of this candid interview was Ito’s admission that “It’s possible we grew complacent about the good performance of the Accord, Civic and CR-V.” The Accord recently lost a major Car and Driver comparison test to the Hyundai Sonata, while the CR-V has gone nearly 8 years without a re-design (that must be Bejing specific b/c the current CRV was redesigned in 2007 here in North America). Ito also cited Hyundai as a major threat, and said that Honda must change its course to compete with the Korean giant. “The biggest problem is we’re not selling the value of our products. We have to improve the performance of our products as well.”

Ito also announced plans for a new hybrid system for large cars, involving two large electric motors, one which charges the battery, the other which gives the gasoline engine a power boost. The system will be used on an upcoming Acura hybrid, as well as minivans and mid-size cars.

Honda has traditionally resisted a number of technologies employed by its competitors, including turbochargers, rear-wheel drive and V8 engines, and stuck to their formula of light-weight, efficient and practical vehicles. But Ito’s comments could indicate that the “Honda way” is beginning to falter, and some new direction is needed at the venerable Japanese firm.

Source;
http://www.autoguide.com/auto-news/2010/04/honda-ceo-not-satisfied-with-automakers-recent-performance.html

Honda CEO Takanobu Ito announces that Acura will add a hybrid

During the unveiling of the CR-Z at the Detroit Auto Show, Honda CEO Takanobu Ito announced that Acura will be adding a hybrid drivetrain to its models. Ito gave no further insights as to timing or which vehicles would get the systems, but it's safe to speculate that the TSX and TL sedans would be the first recipients of the new system. However, when we spoke to Ito last fall in Japan, he did say that Honda was developing a hybrid system suitable for larger vehicles. It's not clear how much it will differ from the architecture of the current IMA mild hybrid system used in the Civic, Insight and CR-Z, but we do expect the system to come equipped with lithium ion batteries from Honda's new partners at GS Yuasa. Make the jump for a copy of Ito's comments.

PRESS RELEASE

2010 North American International Auto Show Remarks by Honda Motor Co., Ltd. President & CEO, Takanobu Ito; and American Honda Motor Co., Inc., Executive Vice President, John Mendel

Takanobu Ito

It's nice to be back in Detroit. I'm excited to be at the show this year as the entire industry continues to fight back against the difficult business conditions. Last year was the 50th anniversary of our business in America. And I want to begin by thanking our customers and the communities where we develop and build our products. This milestone would not have been possible without their support.

Ten years ago, I was working in Ohio at Honda R&D Americas on development of the first generation Acura MDX. This project led us to this Detroit show, because in 2001, our team was honored with the North American Truck of the Year award here at this show. I was also a member of the team that created the aluminum body of the original Acura NSX.

Last year, due to the business conditions and to focus on reducing CO2 emissions, we re-focused some of our product development resources. Now, I'm pleased to say that we will be adding hybrids to the Acura brand. And based on my history in developing several Acura products, I have strong confidence in our ability to advance the Acura brand.

As I look at the market today, at Honda, we have the advantage of being a very global company with strong operations worldwide, including the growing markets of China and Asia. Further, Honda has the advantage of three major business areas – including automobiles, motorcycles and power equipment products. Together, our global makeup and great product diversity provide us strength and flexibility in difficult times, helping us manage the ups and downs of any one market or product segment, while keeping Honda in the black financially.

Our three business lines also make us the leading engine producer in the world. This has provided Honda with tremendous expertise in the area of power plant technology but also a deep sense of responsibility to advance technology in order to reduce CO2 emissions that contribute to global warming.

For engineers, this is perhaps the most challenging time in the history of the auto industry. At Honda, our focus is on being at the very forefront in the area of environment and energy technologies. And we have taken up the challenge to reduce CO2 emissions through the advancement of various electromotive technologies.

We understand electric vehicle technology as well as anyone. Honda developed the EV Plus electric vehicle in the 1990s and leased it to individual customers in California. Now, we are conducting research on a short-distance battery electric vehicle as a "city commuter car." Battery technology continues to be a barrier to mass market use. But we're studying the U.S. market with a view to introducing this commuter car in the future.

We continue to believe that a fuel cell electric vehicle is the ultimate solution to reduce CO2 emissions. A fuel cell car IS a full electric vehicle. But rather than use electricity from the grid, a fuel cell vehicle generates electricity on board and refills more quickly. The development cost must come down and there must be a major expansion of the hydrogen fueling infrastructure. But make no mistake. As a vehicle, the Honda FCX Clarity is ready now. Further, Honda is unique in making long-term investments to develop the refueling infrastructure for alternative fuel vehicles.

This month, we will begin operation of a next-generation solar hydrogen station at our Los Angeles R&D center. This compact system was designed for daily home refueling of a fuel cell electric vehicle. Honda engineers were able to eliminate the compressor entirely to greatly reduce the size of the system to fit in the user's garage. The potential of a solar hydrogen station is one reason a fuel cell electric vehicle is the ultimate eco-car – the best path to reduce CO2.

But in the near term, the most important approach to cut CO2 emissions is expanding the use of hybrid electric vehicles. To increase the opportunity for more customers to choose a hybrid we must be able to meet different needs with family, luxury and sporty hybrid vehicles. We will apply hybrid systems which are compact, lightweight and affordable to a wider range of products in the near future.

It won't be easy to create fun and affordable products that achieve a dramatic reduction in CO2. But we embrace this challenge. Honda is a company that loves creating new things for people. We are working in a comprehensive way dedicated to research and development of next-generation technologies in every field, to create products that bring joy to our customers and lead the way in reducing CO2 emissions.

My first assignment in the U.S. came in the early 1980s. I was a young engineer, developing the chassis for the first generation Honda CRX. You might remember it as the "pocket rocket". I remember CRX as a vehicle that demonstrated that a car can be both sporty and fuel efficient.

Times have changed, but the idea of developing vehicles that are both fun to drive and fuel efficient is alive and well.

Today, it is my pleasure to introduce, for the first time, the production version of a new sport hybrid car that further demonstrates the potential of the Honda hybrid system and our commitment to offer both fun and fuel efficiency in one dynamic package. Thank you.

Source;
http://www.autoblog.com/2010/01/13/honda-ceo-takanobu-ito-announces-that-acura-will-add-a-hybrid/

Question and Answer with Honda CEO Takanobu Ito

Honda's new CEO Takanobu Ito talks to Autocar about the problems with recycled carbonfibre and why he can't sell fuel cell cars.

Do you plan to give us more cars in the future with more platform sharing?
To be honest, we don’t sell a huge variety of cars in Europe. To sell a large variety would undermine our investment efficiency and impact our business. We want to respond to our customers’ needs, so for future cars we will try to offer more varied cars on the same platform and we are revisiting our development in that respect. We will try to reduce the number of platforms, but this will take time.

In Europe Toyota is seen as the green car company, despite Honda’s long history with hybrids. How do you address this?
Our European sales people are largely to blame. We tried to enhance our position with the Civic hybrid but failed. But the CR-Z and Insight will help us enhance awareness that Honda is a green car maker. We also want to introduce the FCX to Europe and have started testing here.

Talking of green technology, what happened to the clean diesels you were working on?
It was too challenging to produce a commercialised clean diesel. We got it to work at a research and development level, but we couldn’t make it work commercially. But we haven’t abandoned clean diesel research, and we’re still working on the technology.

Honda doesn’t believe electric vehicles have much of a future, yet you are working on battery-electric cars. Why?
The performance of batteries is evolving and there are possibilities. But the energy that can be stored is less than an internal combustion engine can produce, and with current battery technology electric vehicles are city commuters. But they could be used as a second car, with an internal combustion-engined car as the first vehicle. We are in the midst of considering what can be done with an electric commuter car.

Honda has, from an early stage, worked on fuel cell vehicles. Battery EVs are heavy, not fun to drive and aren’t reliable, and when it comes to cars lighter is better. FCVs are going in that direction.

So when do you think you’ll be selling fuel cell cars?
We don’t have any plans to sell them as there isn’t a hydrogen infrastructure to support them, and they would be very expensive. Infrastructure is key to the adoption of fuel cell vehicles.

And the cost?
We can do cost reduction and mass production of the technology. It’s simple to produce fuel cells; it’s the chemicals they use that cost money, along with the precious metals. But we can cut the cost of those, too.

What’s happened to the small sub-Jazz car that was mentioned last year?
The recession has caused our business to go through difficult times, and we had to revise our business plan, which has slowed development. Our priority now is to increase sales of the Jazz in Europe. But we haven’t given up on the small car. We’d like to try it in Asia first.

Would you consider a joint venture with another car maker?
I don’t imagine Honda seeking a partner. But if another car maker approached Honda, what would happen? Well, the final products coming out of the factory would have to be Honda products. I wouldn’t rule out the possibility of a partnership, but I can’t see a need for it now.

Volkswagen is working on recycled carbonfibre for cars. Is that something you’re interested in?
The problem with carbonfibre is that you have to bake it at high temperature and at high pressure, which is not suitable for mass production. It’s difficult to recycle, too; recycled carbonfibre can’t be reused in automobiles. That’s why I don’t think it will be used in mass-produced cars.

Source;
http://www.autocar.co.uk/News/NewsArticle.aspx?AR=245649#