Honda 2009 Annual Report Download - page 55

Asia
In Asia, revenue decreased ¥30.0 billion, or 1.8% to ¥1,608.2
billion from the previous fi scal year, due mainly to negative
foreign currency translation effects, which was offset by
increase in revenue in automobile business. Operating income
decreased ¥27.1 billion, or 20.7%, to ¥103.6 billion from the
previous fi scal year, due mainly to negative foreign currency
effects, increased raw material costs and increased SG&A
expenses.
Other Regions
In Other Regions, revenue increased ¥51.4 billion, or 4.7%, to
¥1,144.2 billion from the previous fi scal year, due mainly to an
increase in revenue in all businesses, which was offset by a
decrease in negative foreign currency translation effects.
Operating income increased ¥18.5 billion, or 16.0%, to ¥135.0
billion from the previous fi scal year, due mainly to an increase in
income attributable to an increase in revenue and continuing
cost reductions, which was offset by increased SG&A
expenses and increased raw material costs.
Research and Development
Honda and its consolidated subsidiaries use the most
advanced technologies to conduct R&D activities aimed at
creating distinctive products that are internationally competitive.
The Group’s main R&D divisions operate independently as
subsidiaries, allowing technicians to pursue their tasks with
signifi cant freedom. Product-related R&D is spearheaded by
Honda R&D Co., Ltd.; Honda R&D Americas, Inc. in the United
States; and Honda R&D Europe (Deutschland) GmbH in
Germany. R&D on production technologies centers around
Honda Engineering Co., Ltd. in Japan and Honda Engineering
North America, Inc. All of these entities work in close
association with our other entities and businesses in their
respective regions.
Total consolidated R&D expenses for the year ended March
31, 2009 amounted to ¥563.1 billion.
Motorcycle Business
In the motorcycle business, Honda is committed to developing
products with new value-added features that meet the
individual needs of customers around the world, and to
implementing the timely local development of products tailored
to specifi c regions at its overseas locations. At the same time,
we are focusing on developing industry-leading technologies
that address safety and environmental issues.
Major developments in Japan in fi scal 2009 included the
development of Japan’s fi rst built-in type navigation system for
motorcycles. The system is designed to be positioned below
the meters for best legibility and visibility for the driver and, for
safety, the navigation system can be operated as the rider
continues to hold the handles. These systems have been
installed on a limited basis on Honda’s GOLDWING AIRBAG
NAVI sports touring motorcycle. In addition, Honda has
introduced its PGM-FI electronic fuel injection systems on its
fully redesigned 50cc Monkey leisure model and its SHADOW
Classic 400 cruiser model as well as its new model SHADOW
Custom 400. These systems further improve environmental
performance and contribute to a superior start-up and a
smooth ride. Moreover, Honda has converted both its
combined brake system for front and rear wheels and its
anti-lock braking system to electronic operation for more-
precise control and developed the world’s fi rst electronically
controlled “Combined ABS,” which is an advanced system that
greatly increases the feeling of security when braking. This
system has been installed on the CBR1000RR ABS super
sports model and the CBR600RR ABS, which have been newly
introduced on the market. In addition, in Brazil, Honda has
newly launched the CG150 TITAN MIX motorcycle equipped
with its fl exible-fuel technology that makes possible the use of
any ratio of bioethanol and gasoline. This is the fi rst motorcycle
in the world to offer this feature.
R&D expenses in the Motorcycle Business segment in fi scal
2009 totaled ¥83.6 billion.
Automobile Business
In the Automobile Business segment, we work to develop
innovative technologies and products through creativity-
oriented development in response to customer needs. We are
also actively developing technologies that address
environmental issues and provide advanced safety
performance.
Major achievements in Japan during the fi scal year 2009
included the introduction of the new FREED, a compact
minivan that offers a compact body size as well as a roomy and
comfortable interior. Also, Honda implemented full model
changes for the Odyssey and Accord and equipped these
models with its Motion Adaptive Electric Power Steering Assist
system, which provides driving stability support by stabilizing
the steering motion when vehicle behavior becomes unstable
due to cornering or changes in road conditions. In addition,
Honda carried out a full model change on the Life and
equipped it with the world’s fi rst i—SRS air-bag system for the
driver’s seat with continuously staged infl ation, which offers a
high degree of protection and low impact for passengers
through continuous variability of the air-bag capacity and
emission control. Moreover, Honda introduced the Insight, its
new model hybrid car, equipped with Honda’s lightweight,
compact hybrid system and Eco Assist (Ecological Drive
Assist System), which offer superior eco-performance and a
comfortable ride. Additionally, Honda commenced the
production of the FCX Clarity, a new model fuel cell vehicle,
and began to lease these vehicles in Japan in November 2008
and in the United States in July 2008.
R&D expenses in the Automobile Business segment in fi scal
2009 totaled ¥422.3 billion.
Annual Report 2009 53