Honda 2008 Annual Report Download - page 14

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In April 2008, we began our 10th three-year mid-term business plan, with environmental is-
sues continuing to rise in importance and economic uncertainty reflecting a lack of transpar-
ency related to future trends in the global economy, including the rapid fluctuation of foreign
currency exchange rates. Amid such circumstances, under our 10th mid-term plan, we plan
to establish and strengthen the corporate structure that will enable us to grow globally in the
medium- to long-term future, with Japan taking the lead to extend these initiatives worldwide.
We have set two concrete directions: “To create and launch innovative Honda products
with world-leading environmental technologies and offer them to a wider range of custom-
ers” and “To develop advanced manufacturing systems for the future that will enable Honda
to produce such advanced products.”
In order to progress in these directions, we must develop and mature leading-edge en-
vironmental technologies and innovative products in Japan, and together with our advanced
manufacturing systems, introduce them worldwide. For the new mid-term business plan,
many strategic initiatives are planned, but here we will comment on three of these: strength-
ening the motorcycle business, innovation in automobile manufacturing in Japan, and a
strategy to achieve full-scale market penetration for hybrid vehicles.
Strengthening the Motorcycle Business
The Motorcycle Business is one of Honda’s strengths. Motorcycles are a basic means of
transportation in many parts of the world, and demand for these vehicles is expected to
grow in Asia and South America. Among Honda’s motorcycle products, the Super Cub
series will mark its 50th anniversary this year, and it is a symbolic model for Honda. The
Japanese-born Super Cub has maintained its original creative concept and basic style but
has continuously advanced as a model to accommodate the needs and preferences of
customers as its use has spread throughout the world. Looking to the future, Honda will
continue to create such products as the Super Cub that offer new value and exceed cus-
tomer expectations.
To do this, Honda will make further advances in R&D, expand the application of fuel-
efficient programmed fuel-injection technology and proactively apply safety technologies, in-
cluding a motorcycle airbag system and antilock braking systems. In addition to introducing
environmental and safety technologies, Honda will work to improve fuel efficiency through
the installation of a VCM system that substantially increases fuel economy and an advanced
electronically controlled combined antilock braking system (C-ABS) that further improves
stability when braking, while also working to enhance the attractiveness of medium- to
large-sized models and give Honda owners greater joy in riding motorcycles.
The new motorcycle plant at Honda’s Kumamoto Factory, which began operations in
April 2008, will play a key role in strengthening motorcycle production. Honda created high-
ly efficient production lines at this new plant to provide the capability to efficiently produce
To Our Shareholders
Super Cub 50
CBR1000RR
The 10th Mid-term Business Plan
Annual Report 2008
12