Honda 2010 Annual Report Download - page 43

Europe
In Europe, revenue decreased ¥453.4 billion, or 35.5%, to ¥825.4
billion from the previous fiscal year, due mainly to a decrease in
revenue in the automobile business and negative foreign currency
translation effects. Operating loss was ¥10.8 billion, a decrease of
¥21.0 billion of operating income from the previous fiscal year, due
mainly to a decrease in income attributable to the decreased revenue
and negative foreign currency effects, which was partially offset by
decreased selling, general and administrative expenses.
Asia
In Asia, revenue decreased ¥89.6 billion, or 5.6%, to ¥1,518.5 billion
from the previous fiscal year, due mainly to negative foreign currency
translation effects, which was partially offset by an increase in revenue
in motorcycle business. Operating income increased ¥9.4 billion, or
9.1%, to ¥113.0 billion from the previous fiscal year, due mainly to
decreased selling, general and administrative expenses and an
increase in income attributable to the increased revenue, which was
partially offset by negative foreign currency effects.
Other Regions
In Other Regions, revenue decreased ¥247.7 billion, or 21.7%, to
¥896.4 billion from the previous fiscal year, due mainly to a decrease
in negative foreign currency translation effects and a decrease in
revenue in motorcycle and automobile businesses. Operating
income decreased ¥89.2 billion, or 66.1%, to ¥45.8 billion from the
previous fiscal year, due mainly to a decrease in income attributable
to a decrease in revenue and negative foreign currency effects,
which was partially offset by decreased selling, general and
administrative expenses.
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 significant 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,
2010 amounted to ¥463.3 billion. 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 needs of
customers around the world and to implementing the timely local
development of products suited to specific regions at its overseas
locations. Along with these activities, we are focusing on developing
technologies that address safety and environmental issues.
Major developments in Japan in fiscal 2010 included the
development of the world’s first dual clutch transmission that
converts a multispeed motorcycle transmission to fully automatic
operation and gives both sportier riding performance and better fuel
economy. In addition, in Japan and North America, by separating
the swinger arm and final gear and adopting the Honda original
floating final gear, which is the first of its kind in the world, we were
able to launch the VT1300CX large cruiser model motorcycle (sold
under the name Fury in North America). This new model takes the
combination of stable driving performance and a beautiful design to
new heights. Also, in Japan as well as North America, Europe,
Oceania, and elsewhere, we launched the VFR1200F large sports
tourer motorcycle incorporating a throttle-by-wire system, which is
optimal for a wide range of driving scenes, equipped for the first time
on Honda motorcycles with a newly developed, fully electronically
operated throttle valve. In addition, in Japan and Thailand, we
introduced the 125cc class PCX scooter, which is the first of its kind
in the world to incorporate an ACG starter that offers a quieter
engine start-up. The PCX scooter is also the first domestic scooter
in its class to have an idling stop system that automatically cuts off
the engine temporarily when stopping at traffic signals and in other
situations. Additionally, in Thailand, we developed a new-type CV-
matic automatic transmission, which can be combined with Cub-
type engines, and installed it on the newly launched WAVE 100iAT
Cub-type bike.
R&D expenses in this segment in fiscal 2010 were ¥64.7 billion.
R&D expenses in this segment in fiscal 2009 were ¥85.5 billion,
which reflects a correction from the amount previously disclosed. No
revisions have been made to the prior year’s consolidated financial
statements or to the notes thereto.
Automobile Business
In the Automobile Business segment, we have substantially
strengthened our drive to develop innovative and creative
technologies as well as offer products with new value-added that
exceed the expectations of our customers. We are also actively
developing technologies that provide advanced safety performance
and address environmental issues.
Major achievements in Japan during fiscal 2010 included a full
model change on the STEPWGN. The new model lineup provides
the largest possible interior space in the 2,000cc-or-lower five series
number plate as well as greatly improved flexibility through the
inclusion of a space for folding and storing the third row of seats
under the floor, the first time for this feature to be made available on
this vehicle class. The STEPWGN also delivers the top fuel economy
performance in its class. We also made a full model change in the
ACTY truck, improving its turning ratio and cornering performance.
The new ACTY model features a bigger cabin, is easier to mount and
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