Honda 2011 Annual Report Download - page 47

Europe
In Europe, revenue decreased ¥126.1 billion, or 15.3%, to ¥699.2
billion from the previous fiscal year, due mainly to a decrease in
revenue in the automobile business and negative foreign currency
translation effects. The operating loss was ¥10.2 billion, an
improvement of ¥0.6 billion from the previous fiscal year, due mainly
to decreased selling, general and administrative expenses, which
was partially offset by a decrease in income attributable to decreased
net sales and model mix, negative foreign currency effects.
Asia
In Asia, revenue increased ¥322.5 billion, or 21.2%, to ¥1,841.1
billion from the previous fiscal year, due mainly to an increase in
revenue in automobile and motorcycle businesses, which was
partially offset by negative foreign currency translation effects.
Operating income increased ¥37.6 billion, or 33.3%, to ¥150.6
billion from the previous fiscal year, due mainly to an increase in
income attributable to increased net sales and model mix, which
was partially offset by increased selling, general and administrative
expenses and negative foreign currency effects.
Other Regions
In Other Regions, revenue increased ¥85.5 billion, or 9.5%, to
¥982.0 billion from the previous fiscal year, due mainly to an increase
in revenue in motorcycle and automobile businesses and positive
foreign currency translation effects. Operating income increased
¥23.7 billion, or 51.8%, to ¥69.5 billion from the previous fiscal year,
due mainly to an increase in income attributable to increased net
sales and model mix, positive foreign currency effects, which was
partially offset by increased selling, general and administrative
expenses.
Research and Development
Honda and its consolidated subsidiaries use the most-advanced
technologies to conduct R&D activities with the goal of creating
distinctive products that are internationally competitive. To attain this
goal, 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. in Japan; Honda R&D Americas, Inc. in the United States; and
Honda R&D Europe (U.K.) Ltd. in the United Kingdom. R&D on
production technologies centers around Honda Engineering Co.,
Ltd. in Japan and Honda Engineering North America, Inc. in the
United States. 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 fiscal year ended March
31, 2011 amounted to ¥487.5 billion.
Motorcycle Business
In the Motorcycle Business, Honda is committed to developing
products with 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 fiscal 2011 included the launching of
motorcycles in Japan, Thailand, India, Indonesia and Malaysia
powered by a newly developed double overhead camshaft (DOHC)
engine, which is outfitted with the world’s first roller rocker arm and
other innovations that give non-slip, powerful performance from low
rotation to high rotation speeds, combined with good fuel economy.
We also introduced a globally strategic motorcycle, the CBR250R,
which is a light-weight super sports bike that incorporates a newly
designed frame with a truss structure that offers ease of handling
and maneuvering stability.
In Japan, we began to offer the EV-neo with lease financing. The
EV-neo is an electric-powered bike that responds to the needs of
today’s new era by contributing to realizing a low-carbon society as
it provides transportation for people and cargo. Equipped with a
motor featuring good torque performance even at low speeds, the
EV-neo offers strong starting performance, even when carrying
cargo, and has a specially developed battery that can be fully
recharged in about 30 minutes (at an ambient temperature of 25°C)
as well as greater ease of recharging. In addition, in Japan, we
introduced the Giorno, a motor scooter with a “round and cute”
design to appeal mainly to the fashion-conscious younger generation
but also to suit the tastes of a broad range of other customers. Also,
in Thailand, we introduced the WAVE 110i, a new model Cub-style
bike which is the first Cub style equipped with the PGM-FI
electronically controlled fuel injection system that is more compact
than those equipped in previous models. WAVE 110i has a more-
secure, refined appearance as well as considerably more cargo
space, which can store a half helmet. In Indonesia, we relaunched
the MegaPro, a sports model with wide, practical applicability, after
a full model change. The new MegaPro offers a new design and
equipment that give it a more-luxurious and powerful appearance.
Also, it is equipped with a new type engine that aims for improved
fuel economy through the application of friction reducing and cooling
technologies.
R&D expenses in this segment in fiscal 2011 were ¥67.8 billion.
Automobile Business
In the Automobile Business segment, we are working to develop
innovative technologies and create products with new value added
to respond to customer needs. We are also actively developing
technologies that provide advanced safety performance and address
environment issues.
Among major achievements in Japan during fiscal 2011, we
launched the Freed Spike, which features ease of driving and a
spacious interior in a compact body. In addition, we made minor
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