Honda 2008 Annual Report Download - page 29

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service structures through the consolidation of sales channels and continues to strive to maximize
lifetime customer satisfaction. In fiscal 2009, Honda has set a target of selling 620,000 automo-
biles in Japan, 0.8% higher than in fiscal 2008.
A substantial decline is forecasted for the total demand in the U.S. market in 2008 amid the
uncertainty about future trends in the economy, including concern about the effects of the sub-
prime mortgage crisis spreading to the real economy and rising gasoline prices. Under these dif-
ficult market conditions, Honda will continue to focus on models that already have favorable sales
performances, including the Accord, Civic and CR-V, while also adding four new models, including
the all-new Acura TSX and Honda Pilot, which were introduced in spring 2008, as well as the new
Honda Fit and Acura TL, which are scheduled for introduction in fall 2008. Through these market-
ing activities, Honda intends to respond to the needs of its customers in North America by offering
them new products featuring industry-leading levels of fuel efficiency, quality and reliability.
Although conditions currently facing Honda are challenging, in its production activities it will
implement measures to increase local production and strengthen its base in North America. To
this end, Honda is moving ahead with construction of its new Indiana plant in the United States
with annual capacity of 200,000 units and a new automobile engine plant in Canada. Work on
both these plants is proceeding smoothly with a target start-up date in fall 2008.
In Europe, continued market growth is expected in Russia, the Ukraine and the countries
of Central and Eastern Europe. Honda will work to expand sales of the CR-V and Civic, which
are experiencing favorable sales performances, and introduce the new Accord with full model
changes in June 2008 and new Jazz with a full model change in September 2008. Through these
and other initiatives, Honda will strive to increase the appeal of its products and expand sales in
the European region.
The new, eighth-generation Accord for the European market will solidly establish
Honda’s position in this segment. The new Accord will be available in three types,
with 2.0-liter and 2.4-liter i-VTEC gasoline engines and with a newly
developed 2.2-liter i-DTEC diesel engine, which Honda is mass-
producing for the first time. These Honda automobiles meet
the Euro 5 emissions standards, scheduled to go into effect
in 2009, ahead of the requirement.
Accord (European model)
Review of Operations
Annual Report 2008 27