Honda 2015 Annual Report Download - page 8

In the area of automobile operations, the introduction of the
all-new Civic, one of our global models, will begin in fall 2015
starting in North America. This all-new Civic will be built on a
new platform and equipped with a new downsized turbo
engine, and we will continue expanding the application of these
new technologies to other models. Moreover, two other core
models, CR-V and Accord, will undergo full model changes to
make them even more appealing through the application of
additional new technologies and innovative designs. Please
look forward to the introduction of these all-new models.
In the area of next-generation energy technology, we are
aiming to begin sales of the successor to FCX Clarity in Japan
before the end of this fiscal year (ending March 31, 2016).
Honda will evolve products, such as this fuel-cell vehicle,
which uses electricity as a core technology, in order to usher
in the next generation of mobility.
In the area of motorcycle operations, we will introduce the
CRF1000L, a dual-purpose model, to European markets at
the end of 2015, and then in Japan and North America. We
are also ready to introduce other new products which will
enable customers to experience qualities unique to Honda.
Advancing the six-region global operation structure means
establishing a flexible production and supply system that
features a mutually complementary function.
As for new production operations, in Nigeria, we created
a new automobile assembly area within the property of the
existing Honda motorcycle plant. We began production of
the Accord in July 2015 using a semi-knockdown assembly
method which utilizes parts and components supplied from
Thailand. Annual production capacity of 1,000 units is a small
step, however, we will continue moving forward steadily with
our customers in Africa.
I firmly believe that enabling our six-region structure to
function as a “team” will be the key to future advancement.
Delivering challenging products unique to
Honda to our customers around the world:
Next, I would like to introduce some of the concrete
initiatives we will take on for the pursuit of the second
theme—the continuous development of challenging
products unique to Honda.
Challenging products means products that feature unprec-
edented technologies and provide our customers with joy and
inspiration. We can accomplish this only when the team works
as one and thinks through each issue comprehensively.
The S660, which we introduced to the market in April
2015, is the embodiment of such a team effort. The team was
newly-formed after a young associate proposed the ideal
sports car he wanted to build. Furthermore, we will soon
begin delivery of the HF120 jet engine and the HondaJet, a
light business jet, after pursuing the dream for nearly 30 years.
These are good examples of where team members thoroughly
conceived a plan and worked as one toward a common goal
while doggedly pursing unprecedented technologies.
Continue advancing with the six-region global
operation structure:
Let me talk about how we are going to pursue the two themes
under the key phrase of “Team Honda.” First, the advance-
ment of the six-region global operation structure.
Honda employs a unique matrix management structure,
which divides the world into six regions and each region oper-
ates as an autonomous organization. Under this structure,
each region has built up its own production capacity and
established sales, development and purchasing functions. It
has made it possible for some regions, including North America,
Asia and China, to develop, produce and sell exclusive
models for customers in those regions.
However, in the automobile business, there are some
regions where sales volume has not grown as we expected
due to changes in the business environments. In the mean-
time, investment was made based on the original plans. As a
result, our overall global production capacity has expanded in
excess of demand, and we recognize that it started to have a
negative impact on our cost structure.
As the next step, therefore, I believe it is necessary to
further advance this six-region structure. Maintaining a global
vantage point on the status of regional production expansion,
we will leverage our flexible production system to promote
complementary relationships between each of the regions.
To this end, we must enhance the operational functions of the
global headquarters and introduce initiatives to promote this
mutual inter-regional relationship.
Let me give you some examples of our recent initiatives.
We decided to supply a portion of the North American Fit and
European Jazz models from Japan. The next generation Civic
5-door, which will be produced in Europe, will be supplied to
other regions, and the Canadian-made CR-V will be sold in
Europe as well.
HondaJet
Honda Motor Co., Ltd. Annual Report 2015 07
3 To Our Shareholders
1 The Power of Dreams
2 Financial Highlights
4 Review of Operations
5 Corporate Governance
6 Financial Section
7
Investor Relations
Information
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