Honda 2008 Annual Report Download - page 13

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Honda's automobile plant in Vietnam Civic Hybrid (North American model)Ground breaking ceremony
for new plant in Indiana
Strengthening Our Fundamentals in Japan
We believe that it is important to strengthen the fundamentals of our product creation capa-
bilities in Japan, both for the home market and as a means to transfer Honda technologies
and know-how consistently to our operations in regions outside of Japan. During the 9th
mid-term business plan, Honda advanced a flexible manufacturing system that standard-
ized manufacturing processes and improved production efficiencies, and transferred this
system to our worldwide manufacturing facilities. Through this effort, Honda increased pro-
duction flexibility and worked to bolster its product development and production systems in
order to more easily respond to customer demands and offer high-quality products.
Strengthening Our Foundation for Growth in International Operations
In operations in regions outside of Japan, Honda has worked to establish a flexible produc-
tion system and expand the ability of these operations to quickly respond to changes in de-
mand. Honda has expanded its production capacity for automobiles in response to strong
demand in India, China, Brazil and elsewhere, thus making it possible to supply a total of
3,955,000 automobiles worldwide during fiscal 2008. This result represents a 20.8% in-
crease from production in the concluding year of the previous mid-term business plan.
Moreover, Honda has expanded its production capacity for motorcycles in Vietnam, Brazil,
and other countries, thereby making it possible to supply a total of 14,068,000 units during
fiscal 2008. This figure represented a 25.1% increase over the concluding year of the previ-
ous mid-term business plan.
Strengthening the Effort to Reduce the Environmental Impact of Our Corporate Activities
With the long-range goal of “Commitment for the Future,” Honda has established voluntary
targets for making its products and production activities more environmentally responsible
and is stepping up its initiatives to reach these targets by an earlier date.
Sales are expanding in Europe of Honda automobiles with Honda’s original diesel en-
gines, which offer higher efficiency and better fuel economy, and provide the same driving
performance as gasoline-engine cars. Furthermore, Honda expanded its Variable Cylinder
Management (VCM) system, which offers improvement in fuel efficiency in conventional
gasoline engines, for the all-new Accord V6 models in North America that were launched in
September 2007. Regarding hybrid cars, Honda’s cumulative sales of hybrid models
through the end of fiscal 2008 exceeded 250,000 units. Sales continue to be strong, as
worldwide demand for better fuel efficiency is increasing. Also, Honda’s all-new fuel cell ve-
hicle, the FCX Clarity, was unveiled in November 2007. In the motorcycle business, Honda
has completed the installation of programmed fuel-injection systems with higher fuel effi-
ciency on almost all of its business-bike and scooter models sold in Japan. With regard to
solar cells, Honda began the marketing of thin-film solar cells through its consolidated sub-
sidiary Honda Soltec Co., Ltd.
Annual Report 2008 11