17th May, 2006
Honda Motor Co., Ltd. announced specific plans and initiatives in the following
three areas, which will enable Honda to accelerate its efforts to strengthen the core
characteristics that make Honda unique, and achieve further growth:
1) Establishing advanced manufacturing systems and capabilities
2) Strengthening the foundation for overseas growth
3) Strengthening the commitment to reduce Honda’s environmental footprint
1. Establishing Advanced Manufacturing Systems and Capabilities
By strengthening the areas of production and R&D in Japan that
supports the future growth of overseas operations, Honda will establish advanced
manufacturing systems and capabilities to provide new value.
Building a New Production Plant:
Honda plans to build a new plant capable of synchronous car production – from
the engine to the entire car - in Yorii, Saitama to begin operation in 2010. The
annual production capacity of this new plant will be
approximately 200,000 units. Employment at the new plant is expected to be 2,200
employees. Related investment is expected to be approximately 70 billion yen. When
the new plant becomes operational, Honda’s total annual production capacity in Japan
will be increased from the current 1.3 million units to 1.5 million units.
After the new Yorii plant becomes operational, Honda will
renovate the Sayama plant to make it the most advanced production operation.
Honda will establish a high quality and high efficiency manufacturing system by
applying the latest technologies to both the Sayama and Yorii plants. These
plants will be responsible for evolving such manufacturing systems horizontally
to other Honda operations worldwide.
Strengthening Automatic Transmission (AT) Production:
The production capabilities at the Hamamatsu Plant will be
further strengthened as the leader plant of global AT production, with
manufacturing technologies to be further advanced in
Strengthening R&D Capabilities
Honda will build a new R&D centre in Sakura, Tochigi. This
new R&D facility will have multiple test courses, which reproduce various
driving conditions including high-speed driving to urban-area driving. In this
way, Honda will strengthen development of next-generation vehicles. Honda is
aiming to begin operation of this new R&D facility in 2009. Related
investment is expected to be approximately 17 billion yen.
2. Strengthening the Foundation for Overseas Growth
Honda will further strengthen the foundation for the growth of
overseas operations by focusing on strengthening its business foundation in
North America and on business expansion in growth areas such as Asia and South
Building a New Production Plant in the US:
The new plant in the U.S.,
which is planned to become operational in 2008, will have annual production
capacity of approximately 200,000 units. The related investment is expected
to be approximately US$400 million. Employment at this new plant is expected
to be more than 1,500 employees. And this new plant will have the lowest
environmental footprint among other Honda plants in North America. Honda is in
the final process of selecting locations, with plans to announce more details
when the final decision is made. With this new plant, annual car production
capacity in North America will be increased from the current 1.4 million units to
1.6 million units.
Building a New Engine Plant in Canada:
Honda plans to build a new engine
plant in Canada, neighbouring the existing plant - Honda of Canada Manufacturing
(HCM). The annual production apacity will be approximately 200,000 units, and the
plant should begin operation in 2008. Related investment is expected to be
approximately US$140 million, with employment of 340 employees.
This new engine plant will produce four cylinder engines for
supply to HCM, which are now produced at Anna Engine Plant in Ohio. The Anna
Engine Plant will begin supplying engines for the new automotive plant in the U.S. and
will also begin producing some engine components which are currently being
supplied from Japan. Through this, Honda is going to further increase its local
content in North America.
The new automatic transmission plant in Georgia (with annual
production capacity of more than 300,000 units) began operations this month (May
2006). With the addition of this plant, Honda will establish an integrated AT
production capability and further improve production efficiency.
Expanding Business in Growth Areas
Motorcycle Business in Asia:
Hero Honda in India is planning to increase capacity of its
existing line (by 450,000 units) as well as build a new plant with annual
production capacity of 450,000 units. As a result, annual motorcycle production
capacity in India will increase by an additional 900,000 units to a total of 5.2
million units by 2007.
Honda is planning to expand motorcycle production capacity in the
Philippines and Pakistan. With these expansion plans, the annual motorcycle
production capacity in Asia will reach 14 million units by 2007 – an increase of
6 million units in three years, compared to the 8 million unit capacity in 2004.
Car Business in Asia:
Honda has decided to undertake the plan to double car
production capacity in India three years ahead of the original schedule. Annual
car production capacity in India will reach 100,000 units around the end
of 2007. Honda will consider further expansion to accommodate future growth in
Car Business in China:
When Guangzhou Honda’s second car plant with annual production
capacity of 120,000 units becomes operational this fall, total car
production capacity in China will reach 530,000 units. Honda will consider
further expansion based on future market trends.
Car Business in South America:
Honda is planning to double production capacity of its car plant
in Brazil to 100,000 units by 2008.
Based on these expansion plans and other initiatives, Honda
envisions 2010 global unit sales of more than 4.5 million units for cars,
18 million units or more for motorcycles, and 7 million plus units for power
3. Strengthening the Commitment to Reduce Environmental Footprint
Under the direction of “commitment for the future,” Honda will
continue pursuing more proactive efforts to reduce its environmental footprint
with the main focus on CO2 reduction.
Reduction of CO2 Emissions – Setting Voluntary Goals
Honda voluntarily sets global CO2 reduction goals for its products and production
activities and is accelerating its efforts to achieve those goals.
In 2000, the global average of CO2
exhaust emissions among Honda cars was 179.5g/km. Despite increased sales
of larger-size vehicles such as SUV and minivans, average CO2 emissions were reduced
by 5% during the five year period up to 2005.
Honda now strives to achieve a further reduction of 5% or more,
aiming to accomplish a total 10% reduction by 2010 compared to the level of
2000. Honda will also work toward a 10% reduction both for motorcycles and power
At Honda, the global average of CO2 emissions to produce one car also declined by
approximately 5% during the five year period up to 2005. Honda is working
toward a further reduction by 5% or more by 2010 to achieve a total reduction of
10% compared to the level of 2000. For motorcycle and power product production,
Honda set goals to reduce CO2 emissions by 20% in each area.
Honda is the first car maker in the world to announce global
CO2 reduction goals for its products and production activities.
New Dedicated Hybrid Vehicle
Honda is now developing a new dedicated hybrid vehicle suitable
for family use in major markets in the world. With this new
dedicated hybrid vehicle Honda will achieve further advancement of fuel
efficient technologies and a major cost reduction, which will enable Honda to
offer this vehicle in 2009 at a price level lower than the Civic Hybrid.
Production of all-new, more-affordable, dedicated hybrid
vehicle, including the hybrid unit, will be produced at Suzuka Factory. The
worldwide sales plan is approximately 200,000 units per year that includes
projected North American sales volume 100,000 units.
New Clean Diesel:
Based on the current highly successful diesel engine currently
sold in Europe, Honda is now developing a cleaner next-generation 4-cylinder
diesel engine. This engine will meet the U.S. EPA’s stringent Tier2 BIN5
emission standard requiring NOx emission levels equivalent to a petrol-powered
vehicle. Honda plans to introduce this super-clean diesel engine to market
within the next three years.
Honda will also work toward development of a clean V6 diesel engine.
While improving the fuel efficiency of petrol engines with
Advanced VTEC, Advanced VCM, and other technologies, Honda will expand
application of hybrid technology to smaller size vehicles and diesel technology
to medium-to-large size vehicles. Through these comprehensive efforts
leveraging the unique characteristics of each environmental technology, Honda
will accelerate its effort to reduce CO2 emissions.
Honda plans to install fuel injection on the majority of models
for sale worldwide by the end of 2010.
Moreover, Honda will introduce new engine technologies such as
super-low friction engines, which will improve fuel economy by up to 13%
compared to the current level, and VCM systems for motorcycles, which will
improve fuel economy by up to 30% compared to the current level.
Fuel Cell Vehicle
Honda is currently developing a new vehicle based on the
technology and design of the FCX Concept, and a drivable model will be unveiled
later this year. Honda plans to begin sales of this new fuel cell vehicle
within the next three years.
Solar cell panels developed by Honda are currently installed and
utilised at 15 Honda facilities worldwide, the Suzuka Factory will be added
to this list later this year.
Honda will begin the production and sales of solar panels later this year,
within limited areas. Honda will begin mass production of the
solar panel by establishing a production line with the annual capacity of 27.5
megawatts at Honda’s Kumamoto Factory in 2007.
Honda will further strengthen its ability to develop advanced
technologies and products that represent the uniqueness of Honda with the goal
to become number one in the world in providing new value and joy for their
Other Honda news: here.
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Bill Ford's Speech To Shareholders
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GM Opens New European Design Centre
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Audi R8 makes a winning comeback in USA
15th May, 2006
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12th May, 2006
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Suzuki Motor Corporation Achieves Record High Net Sales
11th May, 2006
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9th May, 2006
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Ford Australia Announces Major New Projects
5th May, 2006
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Aston Martin Reveals DBS
4th May, 2006
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Mitsubishi 380 Improves Market Position
4th May, 2006
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Focus XR5 Turbo Boosts Ford Performance Arsenal
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Suzuki debuted the all-new Suzuki XL7 at the 2006 New York
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Bentley Continental GTC
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10th April, 2006
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Morgan 4-seater Returns
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