Honda 2013 Annual Report Download - page 11

improve production efficiency with the start-up of plants dedicated to small car production, such
as the Yorii Plant in July 2013 and a new plant in Mexico in the first half of 2014. We aim to meet
the varying needs of customers in different regions while leveraging global economies of scale.
As I mentioned earlier, the business conditions facing Honda are undergoing a dramatic
transformation. In response, we must be able to react quickly to shifting customer preferences
in different regions worldwide, while continuing to build the value of the Honda brand. Reinforc-
ing our R&D and procurement operations around the world promises to enhance our local
development capabilities and will enable us to realize concurrent vehicle development across
the six regions as well as optimize local design drawings. At Yorii and the new Mexican plant,
we plan not only to use innovative technologies to achieve world-class energy efficiency in
automobile production, but also to improve manufacturing efficiency by taking small vehicle
production technology to new heights.
These global operational reforms have been applied to the development of the all-new Fit (Jazz)
series, a global model that we plan to start rolling out in 2013. This series will be one of the main
models supporting future growth in our automobile business. We have taken advantage of the
timing of this full model change to foster further evolution in the way we make cars at Honda.
Growth with products developed to meet market demands
around the world
Turning to regional market developments, our launch of the new Accord in 2012 was well
received in North America, where economic recovery is underway. In addition, we will strive to
bolster sales of core models such as the Civic, CR-V, Odyssey and Pilot. From 2012, we also
began a three-year program of updating the entire range of models under the Acura brand. The
Acura RLX flagship sedan introduced in
March 2013 features a newly developed
engine and the world-first Precision All-
Wheel Steer™ system, which achieves
both high maneuverability and stability. It
also utilizes many advanced technologies
to deliver outstanding fuel efficiency in a
package that is fun to drive. Going forward,
we plan to continue honing the Acura
brand with cutting-edge technology.
In China, while reinforcing local develop-
ment capabilities, we are introducing prod-
ucts that focus on the needs of Chinese
customers. Over three years beginning in
2013, we plan to roll out twelve new and
fully remodeled Honda models for the Chinese market. In Asia, we aim to succeed in the
extremely competitive market for affordable cars and to fulfill diverse customer needs by adding
sedan and utility-type models to the existing Honda range, based on the Brio platform, one of
our strategic models for Asia.
Our new N series of mini-vehicles has proved popular in Japan. We plan to add another five
models to our mini-vehicle lineup by the end of 2015. Combined with the all-new Fit series, we will
leverage our strong product strength to significantly boost our presence in the Japanese market.
We continue to develop our “Earth Dreams Technology,” a series of next-generation power-
train technologies that realize high-level driving performance and fuel efficiency based on the
development of more efficient engines and transmissions, combined with the use of advanced
electromotive technology. This includes hybrid vehicles, for which we are developing distinct
powertrain systems based on one, two or three motors to improve fuel economy, while also
infusing vehicle performance with Honda-style fun. We believe this approach will enable us to
provide vehicles which suit diverse customer needs.
We have also developed a new, smaller 1.6-liter diesel engine. It was fitted to the new Civic
launched in Europe in February 2013. In India, where diesel-powered vehicles are in high
Civic (North America)
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