Honda 2007 Annual Report Download - page 9

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Acura Design Studio, which opened in
May 2007
Groundbreaking ceremony for new factory
in Indiana
Establishing Advanced Manufacturing Systems and Capabilities
First, let me outline our initiatives to create advanced systems in the realm
of manufacturing and R&D, as these areas support the ongoing global
expansion of Honda’s businesses.
In terms of strengthening our manufacturing systems, the new Yorii
plant—scheduled to begin operations in 2010—will feature high-quality
and highly efficient production and logistics systems, allowing us to make
state-of-the-art automobiles quickly and in response to diverse customer
demands. Also taking the environment into consideration, each of the cars
produced at this plant will produce 20% lower CO2 emissions, compared
with vehicles produced in 2000. As demand in various regions around
the world for fuel-efficient vehicles is rising more quickly than we had
anticipated, we have decided to build a new engine plant nearby, in
Ogawa, Saitama. This plant is scheduled to begin production in mid-2009.
Amid expanding global demand for our motorcycles, both small and
large, we have elected to strengthen our manufacturing system by
concentrating motorcycle production at our Kumamoto plant by the end
of 2009, incorporating functions that will make it one of the world’s leading
factories. This move will enable us to enhance production technologies
and expertise, which we can subsequently share with our plants worldwide.
Moving to the topic of strengthening our R&D system from a
manufacturing standpoint, for motorcycles we will work to respond to
increasingly diverse consumer needs and provide products that are
attractive and highly competitive by pursuing ease of use, improving riding
performance, adding features and making them more fun to ride. We have
reorganized our R&D structure to meet these objectives. In automobiles as
well, we have reorganized our R&D structure into Honda and Acura brand
areas, prompted by the expansion of our premium Acura brand, which has
gained a strong foothold in North America. We have created a product
development system to clearly emphasize individual brand characteristics.
In May 2007, we opened the Acura Design Studio in the United States to
emphasize the important role that design strategy plays in defining the
characteristics of the Acura brand.
Strengthening the Foundation for Global Growth
Addressing the topic of strengthening the foundation for global growth, this
fall we will undertake a full model change for the Accord, a core model in
North America. We are reconfiguring our production system in response
to the rising demand for fuel-efficient cars, stemming from significantly
increasing gasoline prices. In April 2007, we began manufacturing the Civic,
which we have already produced at our East Liberty plant and at line one of
our plant in Canada, at line two of our plant in Canada. In line with strong
ongoing sales of the CR-V, from fall 2007 we will begin manufacturing this
model at our plant in Mexico. We are also planning to begin production in
a new plant in Indiana, in the United States, and a new engine factory in
Canada in 2008. Honda is reinforcing its North American business founda-
tions by putting in place a manufacturing system that can respond flexibly,
both to increasing demand and to market shifts.