Honda 2007 Annual Report Download - page 11

Accelerating Efforts to Strengthen the Core Characteristics that Make Honda Unique
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Establishing Advanced Manufacturing Systems and Capabilities
Strengthening Production Systems in Japan
Establishing a New Automobile Plant (annual production
capacity: approximately 200,000 units)
•New automobile plant to be established in Yorii, Saitama. Production
scheduled to begin in 2010.
•New engine plant to be established in Ogawa, Saitama. Production
scheduled to begin in summer 2009.
•After new plants begin operating, Sayama plant will be renovated to serve
as a leading-edge manufacturing facility.
Strengthening Motorcycle Production Systems
•Gradually concentrate motorcycle production at Kumamoto Factory,
with 2009 as target. Strengthen leading functions and provide technical
guidance to overseas production facilities.
Strengthening AT Production
•Strengthen automobile automatic transmission (AT) and transmission
gear production systems at Hamamatsu Factory.
Strengthening R&D Structure
Strengthening R&D systems
•Updating our Operations Organizationally
Motorcycles: Divide into two domains—one for people wanting
convenience and the other for people pursuing the joy of riding.
Automobiles: Separate the Honda and Acura brands.
•New R&D center to be established in Sakura, Tochigi. Operations
scheduled to start in 2009.
Strengthening Our Foundation for Global Growth
Further Strengthening the Business Foundation of
North American Operations
Establishing a new automobile plant in Indiana
•Production scheduled to begin in fall 2008. Annual production capacity
of approximately 200,000 units.
Establishing a New Automobile Engine Plant in Canada
Adjoining Existing Auto Plant
•Production scheduled to begin in 2008. Annual production capacity
of approximately 200,000 units.
Expanding Production at Our Plant in Mexico
•From fall 2007, annual production capacity scheduled to increase from
30,000 units to 50,000 units. CR-V production scheduled to begin.
Strengthening European Business
Creating a system with an annual production capacity of
300,000 units
•In February 2007, U.K. plant has shifted to full automobile production of
annual capacity of 250,000 units.
•In early 2008, expand automobile production capacity of plant in Turkey
from 30,000 units to 50,000 units.
Expanding Business and Strengthening Foundation in
Developing Areas
Expanding production capacity in India
•Expand annual motorcycle production capacity to exceed 5.6 million units
by 2010.
•During 2007, double automobile annual production capacity to 100,000
units. Within two years, build a second automobile plant.
Expanding Motorcycle Production Capacity in Vietnam
•In mid-2007, expand annual production capacity to 1 million units.
•Made decision to build a second plant. (Production scheduled to begin
in the latter half of 2008.)
Expanding Motorcycle and Automobile Production Capacity
in Brazil
•By the end of 2007, expand annual production capacity to 1.5 million units.
•In mid-2007, double automobile annual production capacity to
100,000 units.
Promote localization and product development in China
•Guangzhou Honda established automobile R&D company.
•Guangzhou Honda received government approval to begin
engine production.
Strengthening Our Efforts to Reduce Our Environmental Footprint
Reduce worldwide CO2 emissions levels by 2010 (compared to
2000 levels)
•Reduce CO2 emissions volumes for motorcycles, automobiles and power
products by 10% per unit*1.
•Reduce CO2 emissions volumes per unit during use for motorcycles and
power products by 20%, and for automobiles by 10%*2.
New Gasoline Engine Technologies
•On automobiles, introduce the advanced VTEC engine and the advanced
Variable Cylinder Management system.
•On motorcycles, expand use of fuel injection.
•On motorcycles, introduce low-friction engine and Variable Cylinder
Management system.
Expanding Scope of Hybrid Vehicles to Include Compact Cars
•In 2009, plan to begin selling an affordably priced new dedicated hybrid
vehicle.
Expanding Use of New Clean Diesel Engine on Mid- and
Full-Sized Vehicles
•Develop a new four-cylinder clean diesel engine that will meet the same
TierII Bin5 U.S. exhaust emission standards that are required of gasoline-
powered vehicles and aim to begin sales in the United States in 2009.
•Pursue development of a V6 diesel engine.
•Also decided to begin sales of this product in the Japanese market.
Bioethanol
•In Brazil, in November 2006 began sale of Flexible Fuel Vehicle (FFV)
capable of running on up to 100% ethanol.
•Developed new technology to produce bioethanol from rice straw. In May
2007, established pilot plant to promote mass-production technologies.
Fuel Cell Vehicles
•In 2008, begin leasing a new fuel cell vehicle in Japan and the United
States based on the FCX Concept car.
•Promote initiatives involving home energy stations that produce hydrogen
from natural gas, as well as solar cell-based hydrogen stations.
Solar Cell
•Established manufacturing and production subsidiary Honda Soltec Co.,
Ltd., in December 2006.
•Established a production line at Kumamoto Factory with annual
capacity of 27.5 megawatts.
•In fall 2007, begin mass production and full-fledged sales.
*1: For motorcycles and automobiles, units are grams/kilometer;
for power products, kilograms/hour.
*2: For motorcycles, automobiles and power products, units are
kilograms/unit.
Honda’s Expected Global Sales in 2010
Motorcycles: more than 18 million Automobiles: more than 4.5 million Power products: more than 7 million