Summary of CEO Speech on September 21, 2012

In 2010, I set Honda’s “Direction for the next 10 years” which is “to provide good products to our customers with speed, affordability and...
  • In 2010, I set Honda's "Direction for the next 10 years" which is "to provide good products
    to our customers with speed, affordability and low CO2 emissions."
    Since then, we have
    been devoting our full efforts in leveraging Honda's unique technologies, ideas and ingenuity
    to create attractive products that please our customers who purchased such products. In
    addition, as a manufacturer of personal mobility products, we have been proactively
    executing various initiatives which contribute to a significant reduction of CO2 emissions.
  • In 2011, we were forced to deal with the unprecedented appreciation of the yen and the
    temporary suspension of production around the world and the shortage of electricity due to
    the impact of the Great East Japan Earthquake and the flooding in Thailand. However,
    thanks to the cooperation of our suppliers, business partners, and the efforts of Honda
    associates, we achieved a speedy recovery and as of today we are ready to make a
  • Since its foundation, Honda has been delivering various products with a passion to use
    technology to make people's lives more convenient and enjoyable. Our products have
    been pleasing customers all around the world by making their work easier, increasing their
    mobility and adding more fun and convenience to their lives. In the previous fiscal year
    (ended March 31, 2012), Honda shared the joys with more than 23.9 million customers
    around the world including: 15 million motorcycle customers, 5.8 million power products
    customers and 3.1 million automobile customers.
  • In FY2017 (fiscal year ending March 31, 2017) -- the last fiscal year of our next 3-year
    mid-term plan – we will strive to further expand the joys by meeting more than 39 million new
    customers around the world combining motorcycle, power products and automobile customers.

[Motorcycle business]

  • By leveraging the advantages of being the world's top motorcycle manufacturer, Honda
    will provide joys, fun and convenience to more customers. In FY2017 (fiscal year ending
    March 31, 2017), Honda will strive to achieve worldwide motorcycle sales of more than
    25 million units
  • The motorcycle business is the origin of Honda, and its history tracks back to the production
    and sales of auxiliary bicycle engines when the main means of transportation in people's
    daily lives was a bicycle. In 1949, Honda introduced its first mass-production motorcycle
    product, the Dream D-type. From there, Honda has been continuously introducing a number
    of useful products including the Super Cub Series, which became the global best seller.
    Meanwhile, Honda had a global viewpoint from a very early stage and took on challenges
    for technological innovations. Participation in the Isle of Man TT Race since 1959 was one
    such challenge. Honda has experienced various difficulties in the past including the Asian
    currency crisis, hyperinflation and the rise in manufacturers of counterfeit products.
    However, even in the midst of such difficult times, Honda sustained its business with
    tenacity taking necessary actions such as strengthening local operations and global sourcing.
    As a result, Honda grew to become a motorcycle brand loved by customers around the
    world, producing a wide range of products in 29 production plants in 21 countries around
    the world and delivering the joys to more than 15 million customers annually. The
    know-how and established brand name earned through the early globalization of motorcycle
    business are contributing largely to Honda's global operations of power products and automobile businesses.
  • Using further growth in emerging markets, where continuous expansion is expected, as a
    driving force, Honda will continue to be proactive in evolving its motorcycle business. In
    India, Honda will strive to further grow its motorcycle business through introduction of
    highly-competitive models in the 100cc segment, which is the largest segment in the
    motorcycle market in India, and through the start of production at the third plant in India
    which is scheduled to be operational in the first half of 2013. In Indonesia and Vietnam,
    Honda will lead the market by offering an attractive product lineup including scooter
    models, which have been extremely popular in these markets. In China and Thailand,
    Honda will continue evolving strong business in each market, while continuing the growth
    of the operation as the base for the global supply of parts and finished motorcycle products
    for other regions. In Brazil, where Honda has been growing its business along with the
    growth of the marketplace since the start of production in 1976, Honda will strengthen
    sales of medium and large-sized motorcycle models in addition to maintaining strong sales
    of key products such as the CG125 and CG150. Honda will continue leveraging its global
    production and sourcing capabilities, further advance its brand and technological strengths
    and create more joys by offering a broader product lineup to our customers.
  • Honda will begin entering into new growth markets in Africa and South America. Further
    advancing Honda's approach to local production – "start small, grow big" -- Honda will
    put down its roots in small markets in an early stage of their growth and provide local
    customers with strategic models which take advantage of Honda's global resources.
  • In the area of large-sized motorcycles, following the New Mid Series, Honda will
    introduce a series of large-sized models with a new concept
    , which enable customers to
    more easily enjoy daily commuting and weekend touring. This stylish new series will be
    equipped with a "torqueful" engine, low seat height which increases the ease of handling,
    and a comfortable ride with high stability in maneuvering. The production of the first
    model in this new series will begin in February 2013 at Kumamoto Factory, Honda's
    global motorcycle production operation, and sales will begin from North America
  • With the best and brightest gathered from Europe, South America, the U.S. and Japan,
    together as one "works" team, Honda is getting ready for participation in the Dakar Rally
    in January 2013, for the first time in 24 years. The prototype machine, which is being
    developed based on the CRF450X, has been demonstrating high fighting performance on
    rough road surfaces such as the desert and rocky hills in various tests on engine
    performance, endurance and long-distance riding. In October 2012, this machine will be
    put in actual racing in the Morocco Rally to further refine its fighting capability. Honda
    will strive to win in the Dakar Rally from the first year of returning to the Rally.
  • Since its market introduction in 1987, the RC30(VFR750R) super sports bike has been
    loved by a large number of fans. With a goal to create a new history, passionate Honda
    engineers have gotten together and have begun development of a new super sports bike to
    which new technologies from MotoGP machines will be applied

[Power Products business]

  • Honda power products business began in 1953 with the introduction of an engine for
    agricultural equipment, which embodied Honda's passion to make working people happy
    through its technologies. Since then, Honda has doggedly pursued human-friendly and
    environmentally-responsible technologies and the delivery of useful "power" for every
    situation of people's life stages including generators, tillers, lawn mowers, snow throwers
    and outboard engines. Additionally, Honda will evolve a new product development
    approach which involves electromotive and intelligence technologies. At the same time,
    Honda will put more focus on a cogeneration unit, which Honda positions as the core of
    energy creation technologies of the future. In FY2017 (fiscal year ending March 31, 2017),
    Honda will strive to achieve worldwide power products sales of more than 8 million units

    and bring smiles to the faces of more customers.
  • In order to fulfill customer needs, which increased especially after the Great East Japan
    Earthquake, Honda developed a new household gas engine cogeneration unit which
    operates autonomously even during a power outage
    . Combined with a hot water supply
    and heating unit, this new cogeneration unit is scheduled to go on sale this fall through gas
    companies as a new lineup of the ECOWILL brand
  • Moreover, Honda began development of a household SOFC (Solid Oxide Fuel Cell)
    cogeneration unit in collaboration with NGK SPARK PLUG CO., LTD
    . Striving to
    achieve the world's top-level power generation efficiency for a SOFC-powered
    cogeneration unit, Honda will begin verification of the system using a demonstration test
    house featuring the Honda Smart Home System (HSHS).
  • As a part of its effort to further reduce CO2 emissions in people's everyday lives including
    mobility, Honda has been participating in the E-KIZUNA Project run by the city of Saitama.
    Honda is currently conducting demonstration testing of HSHS using two HSHS-equipped
    houses. The construction of a third HSHS-equipped house is scheduled to be completed
    before the end of FY 2014 (fiscal year ending March 31, 2014). When the third house
    becomes operational, Honda will work together with Toshiba Corporation to link all three
    houses and conduct demonstration testing of energy management within the community
    contributing also to the city of Saitama's plans to become an environmentally-responsible
    futuristic city. Honda will continue making progress toward the market introduction in 2015
    of the Honda Smart Home System, which proposes the optimal energy management for
    individual households.
  • In addition to continuing to provide engine-equipped products, Honda will take on new
    challenges to expand and increase the level of other new offerings that only Honda can
    realize or where Honda technologies can be useful to people.

[Automobile business]

  • In the area of automobile business, in order for Honda to quickly address the needs of
    customers around the world, Honda will implement global operation reform, which will
    enable Honda to realize the best vehicle specifications with competitive costs. Three key
    initiatives which will be taken as a part of this global operation reform are: 1) concurrent
    development by all six regions, 2) adoption of locally optimized design drawings and 3)
    improvement of production efficiency.
  • This global operation reform has been implemented for the development of the all-new Fit
    (Jazz) series which will be introduced starting in 2013. Within two years after the initial
    market introduction of the all-new Fit in 2013, Honda will globally roll-out Fit (Jazz), City
    and a new small SUV model, each with different individual characteristics.
  • As in the case of advanced nations, Honda will respond quickly to various market needs in
    rapidly-growing emerging markets while adapting each model to the industrial
    infrastructures of each country and region. Toward this end, Honda will pursue
    "concurrent development by all six regions", where each region participates in product
    development concurrently and at the same level from the early stage of the development.
    Introducing the same model in all regions within a short period of time enables Honda to
    secure a certain level of production volume on a global basis from an early stage of the
    product introduction, and the cost of parts sourcing can be significantly reduced by
    producing a large volume of parts all at once in the most competitive region.
  • Meanwhile, in order to create products that directly respond to the voice of local
    customers while utilizing the local sourcing and production infrastructure to the maximum
    extent, Honda will adopt locally optimized design drawings. Honda is fully committed to
    maximize the joy of customers in each region.
  • Honda will further improve production efficiency by dedicating new plants to the
    production of small-sized vehicles
    , such as Yorii Plant (SAITAMA prefecture), which
    will become operational in July 2013, and a new plant in Mexico, which will become
    operational in spring 2014.
  • Honda will fulfill the unique customer needs of each region while expanding economies
    of scale in global sourcing and production.
  • In Japan, Honda will strive to sustain its growth through advancement of the production
    system and capability and also through enhancement of the small vehicle lineup including
  • In the area of production, starting in April of this year, development, procurement and
    quality control teams came together at Suzuka Factory to establish a speedy and highly
    efficient development and production system. While producing mostly mini-vehicles,
    Suzuka Factory is making progress in establishing a self-sufficient production system.
  • The Yorii and Sayama Plants of Saitama Factory, will each have unique features and
    strengthen their own area of specialty.
  • Yorii Plant, which will lead the global production operations of Honda, will be the world's
    top-class energy-saving factory which employs a number of innovative technologies.
    Through the introduction of new production technologies, Yorii Plant will establish a
    highly-efficient production structure, which will be dedicated to the centralized production
    of small-sized vehicles such as the all-new Fit Series
  • At Sayama Plant, a portion of two existing production lines will be consolidated to further
    advance the plant's multi-model production capability, so that the plant will establish a
    highly-efficient production system which is capable of producing more than 10 different
    models on the same line
  • In the area of sales, the N BOX, whose overwhelmingly smart packaging has been well
    received by customers, achieved the remarkable accomplishment of being the industry's
    top-selling car in the mini-vehicle category for five consecutive months in Japan.
  • Honda will further strengthen the product lineup through the introduction of six new
    mini-vehicle models in Japan by the end of 2015, starting with the "N-ONE" model in
    Novermber 2012, the third model in the N series
    . In the small car category, the all-new Fit
    Series, which was mentioned earlier, will be introduced to the market. With overwhelming
    product strength, Honda will dramatically increase its presence in mature markets.
  • In North America, in addition to the already popular Civic, CR-V and Odyssey, all-new
    Accord went on sale this month. Honda believes that the all-new Accord with a
    completely new engine and transmission which dramatically improved driving
    performance, occupant comfort and quality feeling will be well accepted by a broad range
    of customers. In addition to strengthening sales of these core models, Honda will begin
    producing an all-new Fit and a derivative model at the new plant in Mexico that will
    become operational in spring 2014. Honda will further solidify its North American
    business through enhancement of the product lineup and competiveness.
  • In China, while strengthening local development capability, Honda will introduce products
    that put more focus on Chinese customers. For the Honda brand, the introduction of more
    than 10 new and full-model-change models is scheduled during the 3-year period from
    2013 to 2015. In addition, Honda will continue introducing locally-developed original
    models to strengthen the product lineup in China. Moreover, amid introduction of the
    strictest fuel economy regulations in the world, Honda will further strengthen its
    competitiveness by proactively introducing environmental technologies such as hybrid
    technologies, where Honda has a competitive-edge.
  • In Asia, in order to compete in and win in highly-competitive low-price markets and fulfill
    the diverse needs of customers, in addition to the all-new Fit Series, Honda will add
    sedan-type and utility-type models utilizing the platform of the BRIO, Honda's strategic
    model for Asia
    . Honda will strive to increase the sales and further growth in Asia by
    strengthening its mutually complementary structure in the region especially among
    Thailand, Indonesia, India and Malaysia.
  • In India, an all-new diesel engine will be adopted sequentially to new models starting in
    FY2014 (fiscal year ending March 31, 2014)
    . In addition to the high fuel efficiency, the
    cost competitiveness of the all-new diesel engine will be enhanced through local sourcing
    and local production to make new diesel models more affordable for customers.
  • With these initiatives, Honda will increase its automobile sales in mature markets namely
    Japan, the U.S. and Europe from approximately 2.06 million units in FY2012 (fiscal year
    ended March 31, 2012) to more than 3 million units in FY2017 (fiscal year ending March
    31, 2017). With proactive business expansion in emerging markets, in FY2017 (fiscal year
    ending March 31, 2017), Honda will strive to achieve automobile sales of more than 3
    million units in emerging markets, doubling the sales of FY2012 (fiscal year ended March
    31, 2012). By solidifying sales in advanced counties and growing dramatically in
    emerging nations, Honda will strive to achieve worldwide automobile sale of more than 6
    million units in FY2017(fiscal year ending March 31, 2017).
  • Honda will further advance its "Earth Dreams Technology," a next generation series of
    powertrain technologies which greatly enhance both driving performance and fuel
    efficiency at a high level through the improvement of internal combustion components
    including the engine, along with the transmission, and also through advancement of
    electromotive technologies applied to motors and other components.
  • For gasoline-powered vehicles, which remain the most widely used in the world, Honda
    will continue developing internal combustion engines which will increase fuel economy to
    the ultimate level. Honda will adopt the newly-developed engine series first to the all-new
    2013 Accord, and will continue to adopt it sequentially to other models.
  • As for hybrid vehicles, Honda will adopt three different systems with unique individual
    characteristics depending on the model in order to fulfill the needs of more customers.
  • As for the lightweight and compact one-motor hybrid system, EV driving range will be
    expanded through the improvement of motor output and battery performance as well as
    the combination with a newly-developed transmission. Moreover, Honda will strive to
    achieve No. 1 fuel economy among all hybrid vehicles by improving the efficiency of
    regenerative energy recovery
  • In the area of mid-size vehicles, following the market introduction of the all-new
    Accord-based plug-in hybrid model in the U.S. in early 2013, a hybrid model equipped
    with a two-motor hybrid system will be added to the lineup. After the U.S. introduction,
    these models will be introduced in Japan and other regions. The plug-in hybrid model
    which will go on sale in Japan will be equipped with a compact inverter capable of
    external power supply
    , which was developed by applying Honda's generator technologies.
  • Concerning the pursuit of driving performance, a highly-efficient and high-output
    three-motor hybrid system, the Sport Hybrid SH-AWD® (Super Handling All Wheel Drive),
    which realizes both a high level of sporty handling and fuel economy, will be applied to the
    NSX, Acura RLX Sport Hybrid model and the successor model of Legend which will be
    introduced in Japan in 2014
    . Honda will measure up to the expectations of customers
    eagerly waiting these models by highlighting the presence of these hybrid vehicles with
    unrivaled driving performance and fuel economy.
  • As for battery EVs, this summer in Japan and the U.S., Honda began lease sales of Fit EV,
    which realizes the world's best electric energy consumption performance. In line with
    changes in the energy situation, Honda will continue its efforts to develop EV models with
    which Honda will strive to realize further market penetration of EVs.
  • As for micromini-vehicles, which Honda considers to be one of the directions battery EVs
    can take, Honda will further advance the concept of a "micro commuter," which was
    introduced at the Tokyo Motor Show last year. While incorporating ideas and technologies
    unique to Honda, the only automaker which has both motorcycle and automobile
    technologies, Honda is making progress in the development of new personal mobility
    products. Honda is planning to begin demonstration testing of such products in Japan in
  • As for fuel cell electric vehicles, which Honda considers to be the ultimate
    environmentally-responsible vehicle, and therefore has been leading the industry in R&D
    and sales, Honda will launch an all-new fuel cell electric model sequentially in Japan, the
    U.S. and Europe starting in 2015
    . This new fuel cell vehicle will showcase further
    technological advancement and significant cost reduction that Honda has accomplished.
  • Honda will proactively introduce dream-inspiring and edgy products as well as exciting
    and fun products.
  • In addition to the NSX, the next-generation super sports model, Honda will launch a new
    open-top sports car with strong vehicles dynamics which will go on sale in Japan 2014
    , as
    one of the six new mini-vehicle models.
  • In Europe, in addition to the introduction of the NSX, Honda will develop an all-new
    Civic Type-R
    to fulfill customer expectations. With the application of technologies which
    will be cultivated through participation in WTCC (FIA World Touring Car Championship)
    starting this year, the all-new Civic Type-R is being developed with the goal of becoming
    the fastest front-wheel-drive vehicle on the Nurburgring race course. Honda aims to
    introduce this model to the market in 2015
  • In addition to a sports hybrid type of Acura's luxury flagship sedan, the all-new Acura
    lineup will include a model equipped with Precision All Wheel Steer, a world's first
    technology which realizes excellent handling performance
    . The world premiere of the
    all-new RLX
    , which features uniquely Acura exterior and interior designs as well as the
    most advanced safety and environmental technologies, will be exhibited at the Los
    Angeles Auto Show in November of this year
    . All Acura models are scheduled to be
    renewed within the next three years
    . Acura will continue to strengthen its brand in North
    America and China, and expand into other areas of the world.


  • Honda's telematics service, HondaLink, is designed to connect vehicles, people and
    society to realize a safe and enjoyable mobility society with low CO2 emissions. Honda
    will evolve HondaLink to more than 60 countries around the world before the end of
    FY2014 (fiscal year ending March 31, 2014)
    . Moreover, Honda will continue its proactive
    commitment in various areas such as the expansion of robotics technologies including
    ASIMO technologies, contributing to child development and promoting traffic safety.
    Honda would like to continue growing while highlighting what makes Honda unique in
    order to further expand the joys for our customers and society.

Publicity materials relating to this press release are available for download at
(This site is intended exclusively for the use of journalists.)




  • Error: You currently have access to a subset of Twitter API v2 endpoints and limited v1.1 endpoints (e.g. media post, oauth) only. If you need access to this endpoint, you may need a different access level. You can learn more here: