Honda 2012 Annual Report Download - page 9

The earthquake inflicted major damage on the Tochigi area, where our automobile
R&D facilities are located. The damage we incurred was extensive, and it had a signifi-
cant negative impact on our R&D capabilities. As a countermeasure, we quickly estab-
lished satellite R&D offices on the sites of some of our other facilities such as the
Suzuka Factory, in order to maintain R&D functions. Due to these timely actions, there
was virtually no impact on the introduction of products already in development. As a
result we have since been able to launch new and updated models in accordance with
our original timetable.
Disruption in the stable flow of parts forced us to make adjustments to auto mobile
production, but we were able to continue manufacturing. The close cooperation
among Honda subsidiaries and affiliates around the world enabled us to keep our
production lines running, which in turn supported a smooth recovery.
The disasters were unprecedented, but we were able to achieve a speedy recovery
due in large part to the enormous support that we received from suppliers and the
public sector, as well as to the single-minded determination of Honda’s associates to
overcome these disasters. Although our results in fiscal 2012, which was the first year
of our 11th medium-term business plan, were less than we would have liked, the fact
that we managed to minimize the damage has set Honda up well for a V-shaped
rebound in the fiscal year ending March 2013. We have slotted straight back onto a
growth trajectory. I am confident that the speed and intensity that enabled us to get
through this crisis will soon translate into the achievement of our targets.
Motorcycle Business
Developing a new market in the “fun” segment
In the motorcycle business, we are developing a number of new models based on the
new 125cc and 700cc engines that we unveiled in September 2011. In the “fun” seg-
ment, where we offer bikes that people ride for leisure and enjoyment, we are develop-
ing the New Mid Concept series for Europe and other developed markets. These
models will be equipped with the new 700cc engine and our lighter, compact second-
generation dual-clutch transmission.
With the New Mid Concept series, our goal is to deliver more than the traditional
styling and specifications that are expected of models that people ride purely for fun.
These new motorcycles will epitomize the joy of riding but will also be practical for
everyday use. The new engine creates exceptional torque at low and medium speeds,
and delivers superior fuel economy for eco-conscious riders. Using a common engine
and transmission platform, we have developed three distinct Honda models in the
series to appeal to a broad range of customer needs. The sharing of a single engine
and transmission platform among models
will also enable production efficiencies that
translate into a more competitive price in
the marketplace.
Striving to realize new possibilities with-
out being constrained by conventional
thinking is part of the driving force behind
Honda’s growth and is a manifestation of
the Honda spirit. By offering original value
in the “fun” segment of the motorcycle
market, we aim to gain new customers
while actively cultivating a new market for
our products.
NC700X
Honda Motor Co., Ltd. 07