Honda promotes American managers in push to revive U.S. market

By ALAN OHNSMAN / Bloomberg News

Honda Motor Co. was the first Asian carmaker to build autos in the U.S. and is the most dependent on the market. Now it's also putting more non-Japanese in key roles.

North American Chief Operating Officer Tetsuo Iwamura becomes executive vice president April 1 and No. 2 to President Takanobu Ito. His new seven-member board will manage activities from product planning to production to sales in North America. Three members will be U.S. natives, the first time Americans have held such responsibility, including Erik Berkman to lead regional product development and design.

"Honda quite literally has become a North American car company headquartered in Tokyo, and that's a horrible combination," Jim Hall, principal of 2953 Analytics Inc., an auto consultant in Birmingham, said in a phone interview. "When your headquarters isn't in your most important and biggest-volume market, you become disconnected. We can see that's what's been happening to them. This is to reconnect headquarters with their most important market."

While Honda's U.S. problems have been less dramatic than those of Toyota Motor Corp., which recalled millions of vehicles for unintended acceleration, they've been significant. Even before last year's earthquake and tsunami cut supplies, core Honda cars such as the Civic and Accord were losing ground to Hyundai Motor Co. and Ford Motor Co. models that won praise for stylish looks and fuel economy.

Growing competition spurred Honda to offer U.S. incentives that were 87 percent of the industry average in this year's first two months, according to Woodcliff Lake, New Jersey-based Autodata Corp. In 2008, Honda's discounts were less than half the average.

'Out of Necessity'
"For too long they've lived in this cocoon of 'What we're doing is good enough,' " said Maryann Keller, principal of a self-named consulting firm in Stamford, Conn. "There's a recognition that that's no longer the case, so I think they are making these moves out of necessity."

For the first time, Honda's No. 2 executive will be based at the company's U.S. headquarters in Torrance, Calif., instead of Tokyo.

"Knowing the current competitive and complicated marketplace, rapid changes in customer needs, we think it's better to put more emphasis on the American side," Iwamura said in a March 12 interview. "Production and R&D, development facilities, those can be done by investing money. Localization of the people is one of the key issues."

Toyota Moves
Honda's revenue from sales of autos, motorcycles and power products in North America was 986.2 billion yen ($12.7 billion) in the quarter that ended Dec. 31, or 51 percent of its global total. While U.S. sales of Honda and Acura autos fell to 1.15 million units last year, which was still 38 percent of the company's worldwide volume.

Toyota, too, is giving more authority to North American executives, to improve development of products for the market and avoid a repeat of the 2009-10 recall crisis.

This month, Toyota promoted Jim Lentz to chief executive officer of its U.S. sales unit, the first time that job has gone to an American.

Asia's largest automaker last week said Steve St. Angelo, executive vice president for North American engineering and manufacturing, will oversee regional production as part of his duties on Toyota's North American management committee. Ray Tanguay, chairman of Toyota's Canadian unit, is responsible for North American quality issues. Lentz will oversee regional sales, marketing and product planning.

Honda's Revamping
Toyota President Akio Toyoda has said shifting more responsibility to local managers in North America is central to his goal of restoring customer satisfaction hurt by the recalls.

Honda's U.S. car and light truck sales slid 6.8 percent last year after natural disasters in Japan and Thailand curbed output of parts and vehicles. The company's redesigned Civic also flopped in tests by Consumer Reports, which recommended previous versions, a sign that the carmaker's ills extended beyond 2011's one-time events.

For decades, products created for the U.S. came from a "synergy effect" between Japanese and American engineers, Iwamura said. Now, American engineers making product decisions for U.S. customers is the best way to increase competitiveness, Iwamura said.

"That is one of the reasons we appointed Erik as the top man of R&D," he said. Berkman, who begins his new job April 1, was traveling in Japan and unavailable for an interview.

Honda's Targets
John Mendel, executive vice president of U.S. sales, is also joining Berkman on Honda's North American management board, as is Tom Shoupe, president of the company's Alabama plant.

Honda wants to rebound this year with a 24 percent U.S. sales gain. It has made some progress, boosting sales 11 percent in 2012's first two months, led by a 45 percent jump in Civic deliveries. The company plans to release a modified Civic later this year to address concerns raised by Consumer Reports, as well as a redesigned Accord.

The company's U.S., Canadian and Mexican plants may also set a production volume record, building about 1.8 million vehicles this year.

The automaker is completing more than $690 million of upgrades at U.S. plants and is also building an $800 million factory in Mexico to produce subcompact models such as the Fit.

In January, Honda said it planned to build its Acura NSX "supercar" in Ohio within about two years. The racing-style coupe will sell for more than $100,000. The site and cost of that project hasn't been announced.

Restoring Reputation
Restoring its reputation as an industry innovator, a legacy of founder Soichiro Honda, is a bigger challenge than boosting sales and production.

"It's not just the Koreans; everyone has gotten better," Keller said. "In terms of quality and features, it's a game of equals. It's just a lot harder for Toyota and Honda to stand out."

It may be years before Honda's changes in local management are effective, said Hall of 2953 Analytics.

"It's safe to say that if they keep going the way they were going, they were heading for a decline with other guys passing them and just doing better than they are," he said. In the U.S., "the question is whether they've caught their problems soon enough to not get passed by Hyundai-Kia."

Source;
http://www.detroitnews.com/article/20120325/AUTO0104/203250305/1148/auto01/Honda-promotes-American-managers-push-revive-U-S-market

Chubu Electric, Honda Motor, Tata Metaliks: Asia Stocks Preview

Hmmm, good idea....

Below is a excerpt pertaining to Honda only....

Honda Motor Co. (7267 JT): The carmaker may build a plant at a location high above sea level in Thailand as part of flooding countermeasures, the Yomiuri newspaper reported, citing the company. The stock fell 0.6 percent to 3,160 yen.

Source;
http://www.businessweek.com/news/2012-03-26/chubu-electric-honda-motor-tata-metaliks-asia-stocks-preview

Soichiro Honda - Short Film

Wow, is this ever well done.... check it out!

Honda reveal concept image of new WTCC Civic

by Neil Hudson

An artist's impression of the new JAS Motorsport Honda Civic, due to enter this year's FIA World Touring Car Championship later this season has been released. The images, reported by Belgian motorsport site RacingWorld.be, shows a more detailed representation of the Ninth Generation Honda Civic in its white, grey and red colour scheme.

JAS, Honda, Yokohama and Mugen logos adorn the car but no additional sponsor logos at this point, nor are there any driver markings.

The car is being built to S2000 regulations and so is much closer to the road-going model than the Team Dynamics built NGTC Honda Civic, which is currently testing ahead of this year's British Touring Car Championship.

Honda recently announced a two car entry into next year's Championship with the new Honda Civic, which will be built by JAS Motorsport.

JAS last entered the WTCC in 2006 with two Honda Accord Euro Rs for Ryan Sharp and Pierre-Yves Corthals, and have since built rally versions of the Honda Civic R3 for the Intercontinental Rally Challenge in addition to running cars in the Asian Touring Car Series, finishing as runner up in the drivers' standings in 2011 with Kenneth Lau.

Mugen will be charged with supporting the Honda 1.6 turbocharged engine, and the car is expected to join the Championship at the Suzuka round in October at the latest.

Source;
http://www.touringcartimes.com/article.php?id=7253

Briefs: Moody's gives Honda's credit negative rating

Honda Motor Co . and its affiliates' credit rating outlook was cut to negative from stable Monday by Moody's Investors Service on concern the automaker faces "significant challenges" in regaining its market share.

The carmaker's rating could be reduced if it is unable to restore profitability and regain market share, Moody's said. Honda lowered its full-year profit outlook after Thailand's worst floods in almost 70 years disrupted production.

Source;

http://www.detroitnews.com/article/20120207/AUTO01/202070325/1148/AUTO01/Briefs-Moody-s-gives-Honda-s-credit-negative-rating

Honda out to shake up market with 1st jet next year

* Honda sees minimum 25% share of small business jet market
* HondaJet aims to be the Civic of small business jets -exec
* HondaJet to up ante on Cessna, Embraer
* Sees demand for small jets growing as users downsize -exec
* Wants to enter Brazil, China earlier than planned

By Chang-Ran Kim
TOKYO, Jan 30 (Reuters) - Honda Motor Co expects to grab at least a quarter of the world market for small business jets soon after delivering its first aircraft next year, achieving the company's long-standing goal of taking to the skies, an executive said.

Honda, Japan's No.3 car maker and the world's biggest manufacturer of motorcycles and engines, is in the final stages of getting its $4.5 million HondaJet certified. It aims to ramp up the pace of production to 80 a year in the first half of 2013.

Honda received more than 100 orders for the seven-seater jet in three days when it began taking orders in 2006, promising a quieter engine, 20 percent better fuel economy over competing models and operational costs of two-thirds or less.

It has not disclosed an updated number of orders, but Michimasa Fujino, a Honda executive and CEO of its North Carolina-based subsidiary, Honda Aircraft Company, said it held a backlog of about three years from orders taken through its nine dealerships in North America and Europe.

"I'm very optimistic about our prospects," Fujino, who initiated Honda's foray into aviation research in 1986, told a small group of reporters at the automaker's Tokyo headquarters on Monday.

"We're doing with HondaJet what the Civic did to American cars from the 1960s. Our competitors are still producing with technology from the 1990s," he said, referring to Textron Inc's Cessna and Brazil's Embraer SA, which now dominate the 200-a-year small business jet market.

The Civic, known for its reliability, durability and mileage, has consistently been among the United States' best-selling cars since its launch in 1973, forcing industry giants such as General Motors Co to follow suit with cars to meet the country's tighter emissions regulations.

Honda's ambition of making jets traces back to its iconic founder, Soichiro Honda. The HondaJet will make Honda the only car maker in the world to build its own aircraft.

Its engine is made by a joint venture between Honda and General Electric Co.

Honda Aircraft is aiming to turn a profit by 2018, Fujino said.

BRAZIL, CHINA CLAMOURING FOR JETS
The business jet industry is expecting a rebound in sales this year after the global economic crisis hammered sales over the past three years.

While the small business jet market has traditionally been limited to North America and Europe so far, Fujino said he was fielding about a call a week from China, both from prospective buyers and eager dealers, while interest was also greater than he anticipated in Brazil, India and the Middle East.

"Right now we want to focus on delivering on the orders that we have, but I'd like to enter Brazil and China earlier than we'd initially planned," he said, declining to specify a timeframe. New demand from emerging markets could expand the global small-jet market to about 300 a year, he said.

Fujino said he was also seeing more interest in the smallest end of the market as medium-sized jet users look to downsize to get more for their fuel, much like the trend in the car industry.
"Most of our customers are owners of small- and medium-sized businesses, and many are looking to get the most out of the jets that they need," he said.

With operational costs of about $1,000-$1,200 an hour, HondaJet could make travelling in a group of five or six cheaper and more efficient than flying commercially between small cities, he said. Competitors offer at best $1,800 by comparison, he added.

Honda Aircraft will add 300-350 factory staff to bring its total workforce to around 1,000 in the first half of 2013, Fujino said.

Source;
http://www.reuters.com/article/2012/01/30/honda-jet-idUSL4E8CU1TM20120130

Honda begins scrapping over 1000 cars damaged from Thailand floods

Vehicles are seen after floodwaters receded at the Honda factory in Ayutthaya province on Nov. 26. Thailand's worst floods in 50 years have killed 610 people and devastated industry, but the situation is slowly improving, with water receding in many affected areas.

A Honda worker lifts a flood damaged car at the Honda factory in Ayutthaya province on December 27, 2011. Japanese car assembler Honda automobile (Thailand) started to scrap 1,055 cars which were damaged by the recent floods in Thailand, ensuring that damaged parts would not be sold, the company said in statement.

A flood damaged Honda car is destroyed at the Honda factory in Ayutthaya province on Dec 27. Japanese car assembler Honda automobile (Thailand) started to scrap 1,055 cars which were damaged by the recent floods in Thailand, ensuring that damaged parts would not be sold, the company said in statement.

Workers walk amidst Honda cars that were damaged by the flood before the destruction demonstration at Honda automobile plant in Ayutthaya province, central Thailand on Dec. 27. The 1,055 unit of Honda cars, mostly Brio eco-cars and City subcompacts, were destroyed in an action to assure to customers that the flood-damaged cars will not be repaired and sold.
Natalia Jimenez writes

In an effort to prove that no flood damaged vehicles will not be sold to customers, the Honda factory in Thailand's Ayutthaya province began destroying over 1,000 cars. The factory was one of the hardest hit by the several months of record flooding, which only receded a few weeks ago. The devastating floods were the worst the country experienced in 50 years and left over 700 people dead. According to AFP, the scrapping process is expected to take one month.

Honda's production was disrupted from the floods and only recently returned to normal. According to AP, American Honda Executive Vice President John Mendel says it will not be until March that dealers will be fully restocked.

Aerial images of the submerged cars in the Honda lot provided powerful visuals of the effects of the severe flooding on businesses. (One of the images made it into our selection of the Year in Pictures: 2011.) The area is home to large production centers for global car and computer industries. According to Bloomberg, Toyota had to suspend local production of its Camry and Prius lines, and Apple faced delays in parts used for Mac computers. Western Digital shares hit a year low in October and is now working to regain their losses, according to Reuters.

See more images of the severe flooding in Thailand on PhotoBlog.

Source;
http://photoblog.msnbc.msn.com/_news/2011/12/27/9737801-honda-begins-scrapping-over-1000-cars-damaged-from-thailand-floods

Honda Integra Reborn As Unusual Scooter/Motorcycle Hybrid

Good news: The Honda Integra lives again! Bad news: instead of the small, sporty you’ve come to know and love as an Acura, the new Honda Integra is instead a big, funky-looking scooter.

Perhaps scooter isn’t exactly the right word for it. Honda dubs the Integra a “midsize motorcycle,” although its seating position, which puts the rider’s feet further forward than on a conventional bike, echoes the company’s large Silver Wing scooter.

Mechanically speaking, the motorcycle term is perhaps a bit more fitting. While the Silver Wing tops out with a 582-cc two-cylinder engine, the Integra utilizes a new liquid-cooled, 670-cc inline-twin. Power figures have yet to be released, but Honda says the engine delivers considerable low- and mid-range torque, catering to owners who prefer to ride at moderate speeds. A crankshaft with a 270-degree throw allegedly provides the “feel and character of a V-twin” while retaining the compact dimensions afforded by its inline configuration.

Unlike the Silver Wing, which uses a belt-based continuously variable transmission, the Integra is the second production Honda motorcycle to utilize a dual-clutch transmission. As is the case with the larger VFR-1200F, the Integra’s gearbox is a seven-speed unit with both manual- and automated shift modes, but this second-generation design is reportedly more responsive to inputs, and can adapt its shift logic parameters to the rider’s habits.

Honda says the Integra will formally debut at the EICMA Motorcycle Industry show in Milan, Italy. Presently, there’s no word on whether or not the bike will make its way to North American Honda showrooms – or if the Integra name will stick should it be sold in our market.

Source;
http://rumors.automobilemag.com/honda-integra-reborn-as-unusual-scootermotorcycle-hybrid-83095.html

Honda Installs Wind Tunnel Amid $355 Million Ohio Plant Upgrades

Honda Motor Co. is making $355 million of upgrades at plants in Ohio where it opened its first U.S. wind tunnel, seeking productivity and fuel-economy gains for models designed and built in North America.



The Ohio projects for Japan’s first company to make cars in the U.S. include $166 million of improvements to its factory in East Liberty and a $64 million stamping press at its Marysville plant, said Ron Lietzke, spokesman for the company’s assembly unit. Honda wouldn’t provide the cost of the wind tunnel or other additions to its engineering center in Raymond.



“The driver of the projects is to improve all our characteristics,” Lietzke said in an interview, declining to say whether the changes will lead to greater output. “If we end up increasing production capacity as a result, that’s fine,” he said, without elaborating.



Honda is refurbishing factories as it prepares to restore full North American production next month after parts shortages triggered by Japan’s March earthquake left Honda and Acura dealers short of models. The Tokyo-based company’s U.S. sales fell 2.6 percent this year through July, and market share shrank to 9.3 percent from 10.6 percent as industrywide deliveries rose 11 percent.



Output at Honda’s auto-assembly plants in the U.S., Canada and Mexico dropped 26 percent to 559,981 through July from 754,807 a year ago, according to company data.

Efficiency



Having opened Marysville in 1982, before Toyota Motor Corp. (7203), Nissan Motor Co. and other Asian companies began making cars in the U.S., Honda’s North America engineering and production units are among the region’s most sophisticated, said Jeffrey Liker, professor of engineering at the University of Michigan in Ann Arbor.



“By the most common productivity metrics, they’re among the most efficient,” said Liker, who studies automotive- assembly operations. “They have a history of developing exceptional people and actually keeping them. That allows them to accumulate knowledge and continue to learn.”



The Raymond R&D center, near the Marysville and East Liberty plants, is Honda’s main vehicle-development facility for the Americas. It’s responsible for designing and engineering the Pilot and Acura MDX sport-utility vehicles, Ridgeline pickup, Acura ZDX wagon and TL sedan, and North American version Odyssey minivan, all of which are built only in the region.



Fuel-Economy Push

Boosting fuel-economy on those models to meet tightening regulations is also its responsibility, Frank Paluch, senior vice present of Honda R&D Americas, said in an interview this month.

Last month, carmakers agreed to double the Corporate Average Fuel Economy, or CAFE, to 54.5 mpg by 2025. The first phase for the industry is to reach a U.S. average of 35.5 mpg by 2016.



“We are very aware of those targets and where our responsibility is for CAFE within the lineup. There are set plans how to meet them,” Paluch said. “By the 2016 model introductions, we’ll target about an 18 percent improvement, specifically for our areas.”



Improvements will come through enhanced engine and transmission performance, lighter-weight materials, and smaller and more-efficient components, said Paluch.



Such “evolutionary” changes were used when Ohio engineers revamped the Odyssey last year, raising fuel economy 17 percent, he said. Hitting the 2025 goal is a “bit more gray,” he said.



“If consumers are buying a lot more hybrids, we can easily meet those requirements,” Paluch said. “If consumers don’t buy a lot more hybrids or don’t buy more battery-electric vehicles, we’re going to have to think about other ways to meet those goals.”



Wind Tunnel

Honda hasn’t previously acknowledged the Ohio wind tunnel that was built in late 2010. It will help engineers improve vehicle aerodynamics for further efficiency gains, said John Dirrig, a manager and chief engineer at the Raymond center.



“The ability to do that type of analysis as early as possible in the development phase of new vehicles is a big deal,” he said.



Toyota, Nissan and Hyundai Motor Co. (005380) don’t have wind tunnels in the U.S. Toyota’s Technical Center in Ann Arbor, Michigan, uses one nearby operated by affiliate Denso Corp., said Bruce Brownlee, a Toyota spokesman.



Honda’s is a “half-scale” tunnel, intended for early prototypes.



‘Not Just a Big Fan’

Such a device may cost $25 million, while a full-size wind tunnel is at least $100 million, said Frank Ohlemacher, project manager at the Ohio State University’s Center for Automotive Research in Columbus. “This is sophisticated equipment, not just a big fan,” Ohlemacher said.

Honda won’t say how much it’s invested in Raymond, where more than 1,000 engineers work at desks in a central hall the length of 2.5 football fields, or 750 feet. It also has a crash- test center and laboratories to test electromagnetic interference and the effect of heat, rain and cold on vehicles.



Along with the Ohio upgrades, Honda said in March it’s spending $94 million to modify its Lincoln, Alabama, plant that builds Odysseys and Pilots. This month Honda said it will build an $800 million plant in central Mexico that will make 200,000 small cars a year after it opens in 2014.



Honda’s American depositary receipts, representing one ordinary share, rose 69 cents, or 2.3 percent, $31.30 yesterday in New York Stock Exchange composite trading. Its U.S. unit is based in Torrance, California.



Source;

http://www.bloomberg.com/news/2011-08-25/honda-adds-wind-tunnel-in-ohio-amid-355-million-in-auto-plant-upgrades.html

Honda Motor Assigned Patent

08/23/2011

By Targeted News Service



ALEXANDRIA, Va., Aug. 23 -- Honda Motor, Tokyo, has been assigned a patent (7,997,070) developed by Yuji Yasui, Saitama-ken, Japan, and Ikue Kawasumi, Saitama, Japan, for an "exhaust emission control device for internal combustion engine."



The abstract of the patent published by the U.S. Patent and Trademark Office states: "An exhaust emission control device for an internal combustion engine, capable of supplying a just enough amount of reducing agent to a selective reduction catalyst even when a NOx purification ratio of the catalyst is changed by various causes, thereby enabling a high NOx purification ratio and very low exhaust emissions to be maintained. An ECU calculates a filtered value based on a signal from an exhaust gas concentration sensor, calculates a moving average value of a product of the filtered value and a reference input, calculates a control input such that the moving average value becomes equal to 0, and adds a reference input to the control input to calculate an FB injection amount. The ECU calculates an FF injection amount with a predetermined feedforward control algorithm, and adds the FF injection amount to the FB injection amount, to thereby calculate a urea injection amount."



The patent application was filed on June 6, 2008 (12/134,670). The full-text of the patent can be found at http://patft.uspto.gov/netacgi/nph-Parser?Sect1=PTO1&Sect2=HITOFF&d=PALL&p=1&u=%2Fnetahtml%2FPTO%2Fsrchnum.htm&r=1&f=G&l=50&s1=7,997,070.PN.&OS=PN/7,997,070&RS=PN/7,997,070



Written by Shabnam Sheikh; edited by Jaya Anand.



Source;

http://www.power-eng.com/news/2011/08/1484687165/honda-motor-assigned-patent.html

Honda names former Chrysler exec to steer U.S. marketing

By Mark Rechtin, Crain News Service



LOS ANGELES (Aug. 19, 2011) — American Honda Motor Co. has chosen an outsider and former Chrysler executive Michael Accavitti as its chief marketing officer.



Mr. Accavitti most recently was executive automotive adviser for Cisco Systems, but is better known as the veteran Chrysler executive who was president of the Dodge brand and lead marketing executive of the Chrysler Group before his 2009 departure.



Mr. Accavitti replaces Steve Center, who will lead a new enterprise within American Honda called the Environmental Business Development Office.



Mr. Center has been in Honda’s top U.S. marketing post since June 2008.



Mr. Accavitti inherits an organization that’s battling production shortages stemming from the March 11 earthquake and tsunami in Japan. American Honda’s U.S. sales have declined 3 percent this year through July in a market that’s up 11 percent.



To retain U.S. customers until stockpiles are replenished, Honda has taken the unusual step of extending leases or offering vouchers or rebates toward the future purchase of a new Honda.



Honda has told its U.S. dealers car and light truck inventories are not expected to return to normal levels until the last quarter or early 2012.



New group

The new environmental group will oversee Honda’s various green business initiatives, from the Fit electric vehicle to solar panel arrays to home co-generation units fueled by natural gas.



“Honda is structured by distribution group, by auto brands, motorcycles, and power equipment.



But these futuristic energy creation groups are transcending those silos,” Mr. Center said in an interview.



With “the dynamics (of) the utility business, you can see that things are starting to break through all the distribution channels,” he added.



Mr. Accavitti first worked for Chrysler starting in 1977. He installed axles on trucks at Chrysler’s Warrren, Mich., truck plant—known as Dodge City—to save money for college. He worked on the line for two years and one summer before starting college.



He rejoined Chrysler in 1984 when the auto maker was hiring engineers and spent time in product marketing, brand management and racing.



At Honda, he will oversee the marketing of the Honda and Acura brands, public relations, auto shows and emerging-markets advertising.



The transition is occurring immediately, although it was announced internally on Aug. 1.

Mr. Accavitti is in the process of relocating to Los Angeles and was not immediately available for comment.



Fresh blood

“You need the fresh blood,” Mr. Center said about the changes. “Fresh thinking is good, but too much and you can lose your culture or focus.”



Last year, Honda extended voluntary retirement offers to certain employees and lost about 50 managers, many of whom had more than 30 years of experience at the company. Center said Honda is “still a very young company.”



Mr. Accavitti will have a full plate awaiting him as Honda strives to recover from the March earthquake.



Because of the earthquake-related inventory crunch that killed the momentum of the spring launch of the Civic, Honda will re-launch the compact car this fall. Also, a redesigned CR-V crossover arrives later this year, and a new Accord comes next spring. Those are three of Honda’s four “pillar” vehicles, Mr. Center said.



Honda brand sales are off 2 percent this year, and Acura sales are down 6 percent.



Like Mr. Center did, Mr. Accavitti will report to Tetsuo Iwamura, president of American Honda. Unlike other auto makers, Honda separates its auto operations—such as product development, product planning and marketing—from auto sales, which covers distribution, wholesale and retail and is overseen by executive vice president John Mendel.



Mr. Center, 54, joined Honda in 1993 as part of Dick Colliver’s team of transplants from Mazda North American Operations. Mr. Mendel was formerly executive vice president and chief operating officer for Mazda North America before joining Honda in 2004.



Mr. Center’s career has included managerial positions in market support, e-business, Acura sales, advertising and public relations.



The Environmental Business Development Office will receive additional staff, but Mr. Center declined to give further details.



He called it “a combination of a brain trust, think tank and venture capital firm.”



Source;

http://www.tirebusiness.com/subscriber/headlines2.phtml?cat=1204552929&headline=Honda+names+former+Chrysler+exec+to+steer+U.S.+marketing&id=1313763465

Honda gives back

by David Taylor of www.simcoe.com



ALLISTON - When the sirens started their relentless wail on March 11, 2011 along the eastern seaboard of Japan, who could have imagined that a warning signal might also be resonating in a community in Central Ontario 10,000 kilometres away?



Ever since a massive earthquake rocked Japan almost five months ago, the automobile industry has been adjusting production levels. And its effects have been felt here.



While the world watched as Japan suffered and fought to rebuild, the question became: How would it affect the Simcoe region and the close-knit community of Alliston where Honda operates two sprawling production facilities, employing more than 4,000 people?



The Honda of Canada Manufacturing (HCM) facility in Alliston is one of the assembly operations directly affected by parts shortages.



The vast majority of Honda’s parts and materials are sourced here in North America, but Japan is still a critical source.



“A few critical parts continue to be supplied from Japan,” said Honda Canada executive vice president Jerry Chenkin at Honda Canada’s new, eco-driven headquarters in Markham. “At this time, many of Honda’s Japan-based parts suppliers have resumed production and most are functioning at 50 per cent or better capacity.”



Chenkin said Honda is working diligently and closely with the few suppliers that have yet to resume production to re-establish their operations, while also evaluating additional sources for some parts in the supply chain.



However, the situation changes constantly, a fact borne out by twice-a-day conference calls with the worldwide corporate head office and parts facilities in Japan, he added.



HCM in Alliston and other plants around the world have been forced to cut back operations, limiting overall production.



Following the tsunami, workers on the production lines reported for duty and worked on the line for half their normal shift. The balance of their hours was not been cut, though. They performed other work around the plant on a first come, first serve basis. And, during most non-production periods, HCM employees have the option to take time off without pay, cover the time off with vacation, or report to work for non-production activities that might include cleaning and maintenance, additional training, and involvement in a wide variety of projects.



Honda is doing all that it can to insulate their local workers from the effects of the disaster many time zones away.



“Honda remains focused on minimizing the impact to associates and their families, and plans no layoffs at any of its North American facilities,” Chenkin said.



Honda started reducing production at various North American plants at the end of March since their supply chain system, like most in the industry, allows for between 30 and 40 days of uninterrupted production. But the shortage of key parts has grown more acute as the company struggles to resume operations in Japan or find alternative sources for components.



Unfortunately, this necessary move comes at a bad time for Honda.The versatile Alliston plants assemble the Honda Civic (coupe, sedan and Si models), as well as the Acura ZDX, MDX and CSX.



On April 20, Honda launched the ninth generation of the Honda Civic in five different models. For the last 13 consecutive years, the Civic has been the best selling passenger vehicle in Canada.



Production on the 2012 Civic line began back in January in Alliston, and according to sources, 10,000 to 12,000 units should have been ready to ship by launch time.



However, between Canada and the US, some 30,000 to 35,000 Civics are sold in an average month.



For the 2012 model year, Honda will likely be facing greater competition from other Asian-based rivals – specifically the Toyota Corolla, the Hyundai Elantra and the Mazda 3.



Implications felt half a world away

What are the implications for Alliston, Simcoe, Ontario, Canada and even the rest of the world after the earthquake and tsunami in Japan last spring?



Honda Canada spokesperson Richard Jacobs said dealers will continue to receive Civics and other models, but the impact will vary in different regions depending on demand. Jacobs also said it remains unclear if Civic buyers will experience significant wait times for their new models.



“We’re not really sure yet what the extent of the impact will be and when and how much it will be,” he added.



Among other implications, Honda says it will now delay the launch of the new generation 2012 CR-V sport utility vehicle by at least a month. Honda will extend output of the 2011 model. CR-Vs are presently being built for the North American market in Ohio.



Production for this vehicle will shift to Alliston for 2012 – a testament to the value Honda places on the region’s capabilities.



Honda said it would continue to make decisions based on the status of the recovery in Japan and on the stream of parts. However, a parts shortage still remains a concern.



“Honda is making every effort to work toward a full recovery as quickly as possible,” Chenkin said. “We appreciate everyone’s understanding during these challenging times.”



Honda has managed the unprecedented parts supply issues that resulted from the devastating impact of the March 11 earthquake and tsunami in Japan with no layoffs at any of its 14 production plants in North America.



“We are particularly proud of the efforts of our manufacturing team in Alliston,” said Chenkin, “and we applaud them for the steps they have taken to keep our associates working together as a team during this difficult period... We still have challenges to overcome, but once we have normalized operations we will owe them a great debt of thanks.”



Giving back

In recent weeks, with input from associates and HCM management, some employees have even been working offsite, helping out organizations in the community.



Organizations that have benefited from these “volunteer” initiatives include the Alliston and District Humane Society, the Alliston Good Shepherd Food Bank and the Barrie Food Bank.



At the human society, Honda employees have been building an outdoor shelter, cleaning and helping out with the animals. At the Alliston food bank, they’ve been prepping and painting rooms and offices and are on standby for additional work. In Barrie, they’ve been helping move all stored food from the old fire hall to the Food Bank’s temporary location before the move to new centralized quarters on Anne Street – an enormous undertaking.



Lori Van Valkenburg, with Honda, said HCM also provided assistance at the Habitat for Humanity in Alliston.



“Every little bit helps – everyone,” she said. “It’s a winning situation for all involved, including the community and HCM associates. The advantages to everyone are practically immediate – and far reaching.”



As the supply of parts from Japan improves, production will ramp-up in August on a step-by-step, plant-by-plant and model-by-model basis, with production gradually returning to 100 per cent of the original plan in Honda plants across North America – including Alliston ¬– in September.



However, production of the new 2012 Civic line-up will continue at a reduced rate of approximately 50 per cent due to the limited supply of specific key components. Full production is expected to resume sometime in the fall.



Positive turnaround

“We are pleased to see a positive turnaround represented by this significant improvement in our production situation,” said Chenkin. “Throughout this crisis, Honda has been working hard to achieve a speedy recovery, while maintaining a focus on our longer-term plans for continued growth in sales and production in order to meet the growing needs of our customers.”



A review of sales figures for all models and brands sold in Canada in May, June and even July show expected reductions in most models sold. However, the figures may also be a little misleading and the downturn may not all be directed to recent cataclysmic events. There were significant declines in sales pretty much across the board.



A few days ago, the parent company in Japan, Honda Motor Co., Ltd. reported an 88 per cent plunge in first-quarter profits after the earthquake and subsequent tsunami. An overall net profit of $481 million was announced. However, in a sign that conditions are improving, Honda raised its full-year earnings forecast by 35 per cent.



Given the constraints the company had to work through during the reporting period, the numbers are better than expected, analysts said. "I think Honda deserves some credit for the first quarter, in which some expected the firm to post losses," said Naoki Fuiwara, a fund manager at Shinkin Asset Management with head offices in Tokyo, Japan.



Source;

http://www.simcoe.com/news/article/1052194--honda-gives-back

Honda Plans $500 Million Car Plant in Mexico, Financiero Says

Honda Motor Co., Japan’s third- largest automaker, plans to invest at least $500 million to build a car factory in Mexico, El Financiero newspaper reported.

The plant will likely be located in Salamanca, a city in the central state of Guanajuato, and construction would begin next year, El Financiero reported, citing Mexican Economy Ministry officials it didn’t identify by name.

Honda’s press office in Mexico City declined to comment on the report by El Financiero. Nikkei newspaper in Japan said earlier this week that Honda will build an auto plant in Mexico that produces the Fit compact car and will begin operation in 2014.

Honda has a plant in Mexico’s southwestern state of Jalisco, according to its website.

Source;
http://www.bloomberg.com/news/2011-08-02/honda-plans-500-million-car-plant-in-mexico-financiero-says.html

Ten Honda Manufacturing Facilities in North America Achieve Zero Waste Sent to Landfill

Honda Motor Co. said 10 of its North American plants now send no waste to landfills and four others in the region cut scrap and trash to “virtually” nothing as the carmaker seeks to curb manufacturing-related pollution.

Honda, which claimed in 2001 that its Alabama auto-assembly plant was first in the U.S. to send no trash to landfills, aims to lead the industry in waste reduction, Ed Miller, a spokesman for the Tokyo-based carmaker, said in a telephone interview. The company isn’t aware of a competitor that’s achieved a higher level, he said.

“We now have 10 of 14 facilities that are absolute zero, and for the four that still have some there are extenuating circumstances,” said Miller, who is based in Detroit.

Those include a lack of recycling options for cafeteria waste at Honda’s Mexican motorcycle and auto plant, and a byproduct material from painting aluminum hoods at its Ohio auto plants that can’t be recycled under U.S. rules, Miller said.

Honda, Japan’s third-largest automaker, in 2010 built more than 80 percent of cars and light trucks it sold in the U.S. at North American plants, the highest proportion among Asian and European-based companies. Honda’s U.S. headquarters are in Torrance, California.

Source;
http://www.bloomberg.com/news/2011-07-14/honda-cuts-waste-at-10-north-american-plants-to-absolute-zero.html