Hondanews Online Newsroom

Executive Remarks: 2012 Civic Concept Introduction Press Conference Remarks by John Mendel, Executive Vice President, American Honda Motor Co., Inc.

Tue, 11 Jan 2011 10:31:00 -0800

1-10-11

John Mendel:
Hello everyone! And thank you for joining us this afternoon.

Its great to be in Detroit for a show that exudes the excitement and energy that promises continued momentum for our industry.

Today, we're here to talk about how we plan to build on our own strong momentum ... particularly our role as the home of fun, stylish and affordable vehicles that offer tremendous value to a broad range of customers ... especially younger buyers.

Let me begin with a quick look back at 2010 ... where we saw an increase of more than 7.6 percent to 1.23 million Honda and Acura vehicles for the year. This is even more significant when you consider that we did it one customer at a time. In fact, we continue to be virtually the only full-line manufacturer to increase sales without bulking up on fleet sales.

We'll continue this strategy in 2011, growing sales for both the Honda and Acura brands. And our local production ... 87 per cent of sales ... will continue to serve as an advantage.

We spent a lot of effort the past year on building momentum for the Acura brand. And as we approach the 25th anniversary of Acura in March, these efforts will pay huge dividends. Acura sales have posted double-digit increases for 11 consecutive months now ... ...and were up more than 27 percent in 2010. You can expect double digit growth again this year ... because we have some more excitement in store for the Acura brand later this spring.

But today, we're here to talk about the Honda brand ... having come off a very strong finish last year ... with the successful launch of both the Odyssey and CR-Z. In its first three months of production at our plant in Alabama, sales of the completely redesigned Odyssey have increased by 30 percent from prior year.

And we just learned, Odyssey ... completely developed by our R&D team in Ohio ... earned 5-stars in each seating position of all three crash tests in NHTSA's new NCAP test program ... as well as for the overall rating. That's not just a first in the minivan category ... we believe its a first for the entire industry.

Further, sales of the sporty and stylish CR-Z are also exceeding our expectations with sales of more than 5-thousand vehicles in the first four months. It's great to see our customers embrace this vehicle ... and our effort to push hybrid technology in a sporty direction.

Today, we're showcasing another vehicle that we've designed with an eye on the young at heart. But styling a vehicle like Civic ... with an almost 40-year history of staying ahead of the times ... is a different kind of challenge.

First of all, Civic has an incredible legacy ... consistently one of the industry's most popular and trend-setting vehicles. Along the way, it earned the trust of our customers ... as the most trouble-free car in its class.

Significantly, Civic is a car for all people ... attracting buyers from all demographics ... from the “greatest generation” ... to Generation Y. This is something Civic has always accomplished by remaining forward-looking and focused on the needs of customers ... with outstanding fuel economy and affordability even for first-time buyers ... and without compromising the joy of driving. In fact ... more than 30 percent of Civic customers are under the age of 35 ... that's more than 90 -thousand young buyers each year. Civic plays a critical role for the Honda brand.

Significantly, for the all-new 2012 model, we're not changing the market position established by the current model ... at the front of the line in the compact segment. But we have strived to more clearly express all that Civic represents to our customers in order to maximize customer value and increase our competitive advantage. More than ever, the all-new Civic will fulfill the needs of virtually every compact car buyer.

We're very excited today, to debut two concept versions of our next generation Civic that will go on sale in just a few short months. Ladies and gentlemen, the 2012 Civic Coupe and Sedan Concepts.
[REVEAL VIDEO]

These concept versions of the ninth generation Honda Civic build on the current model's signature one-motion, mono-form design with more expressive body lines. This complete redesign offers a bolder, more energetic and sleek appearance. Yet our focus continues to be on timeless and enduring design... where form follows function. This philosophy is why Civic has always been well-accepted by our customers.

The new Civic will be more compact outside... but with best in class cabin space ... a more sporty and fun to drive spirit ... and more fuel efficient at every level.

While we're only showing the exterior styling here today, we promise that the new Civic lineup will offer the features, functionality and style that will enable every customer to better personalize and customize a Civic to match their own lifestyle.

What's already the most robust compact car lineup in the industry with sedan, coupe, hybrid, natural gas and both sporty Si sedan and coupe models... will grow a bit more for 2012. Further, the next gen Civic will offer three different powertrains. This includes 40 mpg within our gasoline engine lineup, the natural gas powered Civic GX and the new Civic Hybrid with the first-ever application of a lithium-ion battery technology in one of our hybrid vehicles.

In addition to the standard fuel economy ratings, most Civic gasoline models also will feature Honda Eco-Assist technology that has already proven to help less-efficient drivers achieve higher fuel economy.

Significantly, we will continue to offer the industry's only natural-gas powered passenger car assembled right here in America ... in our plant in Greensburg, Indiana. There's a lot of talk about advanced technologies for the environment ... well ... the Civic GX is darn near zero emissions like an electric car. And it's here now ... in fact, we've had it in the Civic lineup since 1998. Further, natural gas is a fuel in abundant supply in North America. And now, retail customers across the U.S. will be able to buy the GX as we expand sales from four states to nationwide.

Finally, Civic's legacy of outstanding safety in the compact class will continue as the only compact car with the innovative Advanced Compatibility Engineering body structure for frontal collision energy management. Of course, we'll also have Vehicle Stability Assist as standard equipment on all models. Ten years ago, the 2001 Civic Coupe became the first compact car to achieve a 5-star, 5-star crash safety rating. The standards have changed, but we anticipate the CIVIC line up scoring well in both the NCAP and IIHS vehicle evaluations.

Together ... all of these attributes create a vehicle that is not only clean, safe and fun ... but an even greater value that targets the young at heart ... of any generation.

Speaking of that ... we will celebrate the 10th anniversary of the Civic Tour this year. For the uninitiated ... this nationwide concert tour annually features one headlining band ... with past years including the Black Eyed Peas, Incubus, Maroon 5, Fall Out Boy and Panic at the Disco ... among other exciting acts.

Each year, the headliner group gives one Civic a custom paint job that one lucky fan gets to take home. We have a large online audience today that I know is wondering who the 2011 headliner will be this year. We're excited about it ... and you'll know why when we make that announcement in the coming weeks. In the meantime, I'd like to invite a very special guest to the stage.

A lyricist, bassist and entrepreneur, who led Fall Out Boy to two multi-platinum albums. Today, he has a new band ... Black Cards ... and some exciting news to share for music lovers. Please welcome, Pete Wentz.

- Pete Wentz reveals The Sounds of Civic contest -

As you can see, there's a lot to be excited about in this banner Civic year. And we can't wait to get it started. Thank you again for your time ... and stay tuned for more news from Honda in the days ahead.

Executive Remarks: 2010 North American International Auto Show Remarks by Honda Motor Co., Ltd. President & CEO, Takanobu Ito and American Honda Motor Co., Inc., Executive Vice President, John Mendel

Mon, 11 Jan 2010 00:27:55 -0800

Takanobu Ito

It's nice to be back in Detroit. I'm excited to be at the show this year as the entire industry continues to fight back against the difficult business conditions. Last year was the 50th anniversary of our business in America. And I want to begin by thanking our customers and the communities where we develop and build our products. This milestone would not have been possible without their support.

Ten years ago, I was working in Ohio at Honda R&D Americas on development of the first generation Acura MDX. This project led us to this Detroit show, because in 2001, our team was honored with the North American Truck of the Year award here at this show. I was also a member of the team that created the aluminum body of the original Acura NSX.

Last year, due to the business conditions and to focus on reducing CO2 emissions, we re-focused some of our product development resources. Now, I'm pleased to say that we will be adding hybrids to the Acura brand. And based on my history in developing several Acura products, I have strong confidence in our ability to advance the Acura brand.

As I look at the market today, at Honda, we have the advantage of being a very global company with strong operations worldwide, including the growing markets of China and Asia. Further, Honda has the advantage of three major business areas - including automobiles, motorcycles and power equipment products. Together, our global makeup and great product diversity provide us strength and flexibility in difficult times, helping us manage the ups and downs of any one market or product segment, while keeping Honda in the black financially.

Our three business lines also make us the leading engine producer in the world. This has provided Honda with tremendous expertise in the area of power plant technology but also a deep sense of responsibility to advance technology in order to reduce CO2 emissions that contribute to global warming.

For engineers, this is perhaps the most challenging time in the history of the auto industry. At Honda, our focus is on being at the very forefront in the area of environment and energy technologies. And we have taken up the challenge to reduce CO2 emissions through the advancement of various electromotive technologies.

We understand electric vehicle technology as well as anyone. Honda developed the EV Plus electric vehicle in the 1990s and leased it to individual customers in California. Now, we are conducting research on a short-distance battery electric vehicle as a "city commuter car." Battery technology continues to be a barrier to mass market use. But we're studying the U.S. market with a view to introducing this commuter car in the future.

We continue to believe that a fuel cell electric vehicle is the ultimate solution to reduce CO2 emissions. A fuel cell car IS a full electric vehicle. But rather than use electricity from the grid, a fuel cell vehicle generates electricity on board and refills more quickly. The development cost must come down and there must be a major expansion of the hydrogen fueling infrastructure. But make no mistake. As a vehicle, the Honda FCX Clarity is ready now. Further, Honda is unique in making long-term investments to develop the refueling infrastructure for alternative fuel vehicles.

This month, we will begin operation of a next-generation solar hydrogen station at our Los Angeles R&D center. This compact system was designed for daily home refueling of a fuel cell electric vehicle. Honda engineers were able to eliminate the compressor entirely to greatly reduce the size of the system to fit in the user's garage. The potential of a solar hydrogen station is one reason a fuel cell electric vehicle is the ultimate eco-car - the best path to reduce CO2.

But in the near term, the most important approach to cut CO2 emissions is expanding the use of hybrid electric vehicles. To increase the opportunity for more customers to choose a hybrid we must be able to meet different needs with family, luxury and sporty hybrid vehicles. We will apply hybrid systems which are compact, lightweight and affordable to a wider range of products in the near future.

It won't be easy to create fun and affordable products that achieve a dramatic reduction in CO2. But we embrace this challenge. Honda is a company that loves creating new things for people. We are working in a comprehensive way dedicated to research and development of next-generation technologies in every field, to create products that bring joy to our customers and lead the way in reducing CO2 emissions.

My first assignment in the U.S. came in the early 1980s. I was a young engineer, developing the chassis for the first generation Honda CRX. You might remember it as the "pocket rocket". I remember CRX as a vehicle that demonstrated that a car can be both sporty and fuel efficient.

Times have changed, but the idea of developing vehicles that are both fun to drive and fuel efficient is alive and well.

Today, it is my pleasure to introduce, for the first time, the production version of a new sport hybrid car that further demonstrates the potential of the Honda hybrid system and our commitment to offer both fun and fuel efficiency in one dynamic package. Thank you.

John Mendel

Well… I hope you love your first look at the production version of the all-new Honda CR-Z, as much as we do. This is the global debut of a global car, and we're very excited to be able to bring it to our customers in the here in the U.S. For those of you who weren't around for the CRX that Mr. Ito helped develop, the CRX was ORIGINALLY introduced in the U.S. as a high fuel efficiency vehicle. However, with time, its style and fun nature arguably played a huge role in the birth of the tuner market. CRX became a darling of the enthusiast community - truly, a car that put a smile on everyone's face.

2009 was a very challenging year for the entire industry. But, December was a good ending to the year for Honda. I don't know about you, but we're glad 2009 is behind us. What better way to kick off the year than with the debut of this stylish and fun new CR-Z, which will join the Civic Hybrid and Insight as the third Honda hybrid vehicle in our lineup. And it will definitely put a smile on your face. I'd like to introduce and thank the chief engineer of the all new CR-Z, Mr. Tomobe; Mr. Tomobe, please stand...

CR-Z is an altogether new vision - a renaissance, if you will - for a car of the future; one whose unique positioning satisfies a new type of customer desire. The CR-Z was developed for a more discerning customer who is seeking a unique combination of forward-looking style, fun-to-drive spirit, advanced safety and fuel efficiency. Truly, a combination of qualities that puts CR-Z in a class by itself.

CR-Z is a look into the future of sporty and personal driving. It's a vehicle for customers in search of something that engages both their heads and their hearts, that indulges their spirit of adventure and their sense of responsibility to the environment. The CR-Z demonstrates in a most stylish way that you don't have to abandon your passions to satisfy your conscience.

Helping CR-Z deliver on these seemingly polarizing values is a 1.5-liter i-VTEC 4-cylinder engine; an integrated IMA hybrid motor mated to a slick-shifting 6-speed manual transmission; or an available CVT that produces 122 horsepower and up to 128 pound feet of torque. We estimate the CR-Z to deliver fuel economy of up to 36 miles per gallon in the city and 38 mpg on the highway.

CR-Z's 3-mode driving system features a spectrum of driving options from a Sport mode that makes the car feel more tight and peppy; to an Econ mode that helps to boost fuel economy through the Eco Assist driver feedback function, introduced last year on the new Insight.

Now, I know you've heard from others with plans to offer up a product in this new segment. But this is a real car coming to you in just a few months.

Of course, it's a Honda. So, you know CR-Z will also feature a strong suite of standard safety equipment: six airbags, anti-lock brakes, vehicle stability assist and our unique Advanced Compatibility Engineering body structure for enhanced collision compatibility.

With standard 16" alloy wheels, a 6-speaker stereo with USB audio connectivity and an automatic climate control system, CR-Z is chock full of standard amenities. Available options include a navigation system, premium audio package, fog lights, Bluetooth, and HID headlights.

The CR-Z will go on sale this summer -and we're confident it will deliver a driving experience unlike any other hybrid on the road today. The CR-Z will not only create a new hybrid segment, it will change people's impressions of how fun a hybrid can be.

Pricing will be announced closer to the on-sale date. As you heard from Ito-san, CR-Z will also add to Honda's long-standing legacy of fuel economy leadership. For the past 33 years, American Honda has been a leader in fuel economy. Our efforts to advance this commitment will only grow in the coming years, with CR-Z and additional hybrid models.

Further, CR-Z isn't joining a static lineup. Both the Honda and Acura brands start the year with the introduction of new crossover vehicles. The flexible Honda Accord Crosstour and the provocative Acura ZDX are helping us get a rollinke note that this is far from the final act of our 2010 auto show season. We've got a little more excitement for you in the months ahead for both the Honda and Acura brands. So stay tuned.

After surviving the difficult challenges of the past year, we're confident that 2010 is going to be a truly exciting year for Honda.

So, thank you again for your time and attention here this afternoon. And now, I'd like to invite Mr. Ito to join me on stage for a quick photo for my personal album. Thank you.

Executive Remarks: 41st Tokyo Motor Show Remarks by Honda Motor Co., Ltd. President and CEO Takanobu Ito

Wed, 21 Oct 2009 08:00:00 -0700

Since Honda's foundation, creating personal mobility as a means to provide basic transportation for people has been the primary focus of our business. By continuing to provide more freedom and the fun of mobility and help people lead more convenient and comfortable lives, last year, we provided some 23 million motorcycles, automobiles and power products to our customers around the world.

Leveraging our strength as a manufacturer of motorcycles, automobiles, and power products, we will strive to be at the forefront in the area of the environment and energy technology by addressing the challenge of reducing CO2 emissions in a more comprehensive manner through further improvement in the fuel economy of existing products and also through the use of new technologies, such as solar cells and electromotive technologies, for each type of mobility product.

At this year's motor show, we designed our booth to propose Honda's vision for mobility of the near future. We are proposing the concept of "Hello!" representing the "Honda Electric mobility Loop" which attempts to comprehensively express our vision to provide both products that generate electricity and mobility products that run on electricity.

These are the products displayed at the "Hello!"zone.
The central Hello! product is the FCX Clarity fuel cell electric vehicle, which runs on electricity generated by hydrogen reacting with oxygen.
This compact city commuter is the EV-N, a battery electric vehicle for which Honda pursued a very simple design form.
The EV-Cub is an electric motorcycle offering the familiar design and outstanding convenience expected of a Super Cub.
The EV-Monpal is an electric personal mobility which helps to permit a life with greater peace of mind and comfort.
And this is our new mobility device, the U3-X, which uses technologies developed through the ASIMO bipedal humanoid program and was designed to co-exist in harmony with people.
All of these products run on clean energy -- either hydrogen or electricity -- produced from solar power.
In addition, each model features interactive communication technologies that showcase the fun ways in which mobility devices can interact with people and society.

Over the long term, the advancement of electromotive technologies is an important factor for the reduction of CO2 emissions. Among potential solutions, we believe that the fuel cell electric vehicle will be the ultimate form for automobiles in the future as it has advantages such as zero CO2 emissions in use, can travel considerable distances without refueling and can be quickly refueled.

Since the 1990s, Honda has been independently developing the fuel cell stack, the core technology of a fuel cell electric vehicle, and leading the industry in creating a fuel cell stack of the highest performance and efficiency. The fuel cell stack on display today is lightweight, compact, and ready for large scale commercial production in the future.
As a result, the FCX Clarity achieved a spacious cabin and innovative exterior styling which emerged from packaging that would be impossible to create with an internal combustion engine. In addition, the FCX Clarity achieves both smooth, perfectly linear acceleration and the unparalleled quietness of an electric vehicle, offering an entirely new kind of driving enjoyment. The FCX Clarity has been available for lease in the United States and Japan since last year, and this year we have begun conducting experiments on public roads in Europe. Going forward, Honda will continue to advance fuel cell stack technology preparing for the more widespread use of fuel cell vehicles in the future.

In the area of battery electric vehicles, Honda offered the EV Plus for lease starting in 1997, in Japan and the U.S. Through these lease sales, we obtained customer feedback on the daily use of the vehicle and customers' expectations and requirements. In addition, various technologies and know-how in areas such as motor drive and high-voltage control were applied to the development of the FCX Clarity and our hybrid vehicles. At this moment, considering the level of battery performance, Honda is conducting research on battery electric vehicles as short-distance commuter vehicles. The EV-N and EV-Cub on display today represent the direction Honda is taking in this area.

However, we believe that Honda should prioritize the more widespread use of gasoline-electric hybrid vehicles at this stage in the advancement of electromotive technologies. We can contribute to the reduction of CO2 emissions by making hybrid vehicles with excellent environmental performance available to even more people. We believe this is the most important challenge for us and we will enhance our hybrid lineup based on these beliefs.

We're introducing the CR-Z Concept 2009, which represents our proposal for a new hybrid model.
The CR-Z Concept 2009 is the world's first hybrid vehicle equipped with a six-speed manual transmission. Together with a 1.5-liter i-VTEC engine the vehicle will create completely new value by combining the fun of driving and outstanding fuel economy.
The compact, lightweight and highly efficient Honda hybrid system, known as IMA, is packaged within an advanced form based on a "low, short, and wide" design concept. We plan to launch a production automobile based on the CR-Z Concept 2009 in Japan in February of next year, and then in Europe and North America.

The Skydeck hybrid is a study model focused on the concept of freely expanding opportunity and fun in people's lives regardless of their age or lifestyle. Striving to achieve "a vehicle which fulfills the needs of each customer," the Skydeck's compact body contains a flexible and high-utility space for transporting multiple people and the tools and equipment for the activities they enjoy.

In addition to our hybrid lineup, we're exhibiting automobiles that are fun to use and to drive including the all-new Step WGN, which achieved the largest interior space in its class, best-in-class fuel economy and features under-floor storage for third-row seats, as well as the Civic Type R Euro, which we plan to introduce in Japan in November. We invite you to take a closer look.

We also have for you today a selection of Honda motorcycles.
To expand the motorcycle market especially among younger people, we believe the key will be pursuing FUN technologies, which includes technologies that enable riders to experience the fun of being in control of the motorcycle and designs which provide the joy of ownership.

In celebration of the 50th anniversary of the Honda "CB" line, we've developed the CB1100 as "the CB for a new era." The CB1100 is equipped with a simple, air-cooled, in-line four-cylinder engine, much in demand by experienced riders, and a design of functional elegance. Designed to please the most discerning veteran rider, we expect that the CB1100, featuring technologies chosen specifically for this model, will have a catalyzing effect on the sports bike segment in Japan.

Making its world premiere at the Tokyo Motor Show this year is the VFR1200F, a high value-added FUN sports touring model featuring next-generation styling and the latest technologies - all of which make it the perfect bike for long-distance rides.
The VFR1200F also will be available with the world's first dual clutch transmission for motorcycles. This lightweight, compact automatic transmission offers exceptionally fine control, as well as fuel economy as good as or better than that of standard manual transmissions. The shift feel is exceptionally smooth and direct for outstanding riding enjoyment.
Honda will be launching the VFR1200F first in Europe, and then in Japan and North America.

Next we have the VT1300 Series. The VT1300 Series offers three models with designs full of character to match the tastes and needs of discriminating riders. In addition, thanks to Honda's original technologies, highly stable handling has joined forces with stylish cruiser design.

The EVE-neo is a next-generation, electric commuter motorcycle that is durable and provides outstanding convenience for business use. We are making progress in the development of the EVE-neo with plans to introduce it to market in the near future.

We also have many more exciting motorcycles on display, so please take your time and see them all.

We also have for you today a selection of power products.
Making people's lives more convenient and comfortable is the passion behind our power products business.

Sales of the Pianta tiller, which runs on ordinary household butane gas canisters, has been growing strong since it was introduced to the Japanese market earlier this year as a new category of tiller product. Today, we are exhibiting our second product that runs on butane gas canisters: the ENEPO generator, designed as a generator that is a more user-friendly and personal item that is easy to use, store and transport. Development of the ENEPO generator is proceeding rapidly, and we currently plan to launch it in Japan in the spring of 2010.
In addition to these products, Honda will continue offering power products which fulfill the diverse needs of our customers, including solar panels and the Monpal electric 4-wheel scooter.
Since the company's foundation, Honda associates have always dedicated themselves to dreaming up ideas to make life more convenient and enjoyable. But we don't stop there. We continue taking on the challenge to turn such dreams into products with our own technologies and offer these products to people around the world. Combining passion and technology is Honda's basic approach as a manufacturer.

More than 50 years ago, we created Super Cub, which continues to be popular among customers around the world. In the 1970s, we created the Honda CVCC engine, which became the world's first to comply with the U.S. Clean Air Act. Today, as we expressed in our booth concept of "Creating the never before!" we will continue our R&D efforts to quickly deliver convenient, fun and unique products to our customers in a way only Honda can do. Please do look forward to these efforts.

Thank you again, ladies and gentlemen. I wish you a very pleasant time at the Honda booth and the Tokyo Motor Show this year.

Executive Remarks: 2008 Paris Motor Show Remarks by Takeo Fukui, President and CEO of Honda Motor Co., LTD

Thu, 02 Oct 2008 00:55:00 -0700

Good morning ladies and gentlemen... and thank you for joining Honda. It is great to be in Paris again... a trendsetting city where... today... we plan to introduce the concept for a trendsetting new vehicle.

The need to reduce CO2 emissions is a global challenge that transcends all national borders. Honda is addressing this challenge with technologies for the current, near and long-term.

Today we are introducing an all-new Jazz in Europe... with an enhanced design... even greater utility... while further reducing fuel consumption. And it achieves the number one fuel efficiency for B-segment petrol vehicles. To help us meet increasing global demand for high fuel efficiency cars, we will begin production of Jazz at our plant in the U.K. next year.

For the long term, we believe fuel cell electric vehicle technology is the ultimate environmental solution. And we have begun introducing the industry- leading Honda FCX Clarity to individual customers to advance this technology.

But to reduce CO2 emissions in the near term, Honda believes the best approach is to advance hybrid technology to mainstream customers. And the foundation of our efforts is the Honda Company Principle that has guided our business for more than 50 years. Maintaining a global viewpoint... with products of the highest quality... at a reasonable price... for worldwide customer satisfaction.

Today, we introduce a hybrid vehicle concept model... the all-new Honda Insight... that takes this principle into action. The original Insight was a 2-seat subcompact car. Introduced in 1999, it was a pioneer for petrol-electric hybrid technology in Europe and North America... as the very first commercially available hybrid car in these markets. We applied new technologies to achieve the number one fuel efficiency in the industry. These included the ultimate in aerodynamic design... an all-aluminum body and new processes for aluminum body production... and the compact IMA hybrid system.

The all-new Honda Insight will also be a pioneer... challenging to take hybrid technology into a new era of affordability. This new Insight will give more people the chance to get behind the wheel of a high quality hybrid vehicle only Honda can develop. Following the advanced aerodynamic design of FCX Clarity, Insight is a 5-seat 5-door hatchback... with room for a family.

We are developing this vehicle to achieve excellent fuel efficiency on par with Civic Hybrid... but at a significantly reduced price. The new Insight is equipped with a hybrid system that combines a lightweight and compact 1.3-liter engine with a motor that will achieve excellent fuel efficiency and low CO2 emissions.

We created a newly developed platform with the control unit and battery under the cargo space. As a result, Insight achieves excellent utility together with light and comfortable driving feel to offer a "Fun to Drive" spirit.

This new Insight represents the further advance of our concept of offering a hybrid for everyone. We have further reduced the weight and size of the hybrid system. And we have improved and strengthened our production system to further reduce the cost of our hybrid system.

While we continue to view the FCX Clarity fuel-cell vehicle as the ultimate solution, we will position Insight as an environmentally-responsible vehicle available to everyone now. The mass-production Insight will go on sale in Europe, Japan, and North America in spring 2009... with expected annual global sales of 200,000 units.

The new Insight marks the start of a new phase in our hybrid vehicle strategy... that will also include the Civic Hybrid, a new vehicle based on the CR-Z concept vehicle and a new Jazz hybrid. We expect combined annual sales to reach approximately 500,000 units.

As a next step... we plan to unveil the mass-production model of Insight next January at the North American International Auto Show in Detroit. But, now, it is my pleasure to give you this first look at the Insight Concept model. Thank you for your attention.

Executive Remarks: 2008 Management Briefing Seminars - Remarks by Dick Colliver

Wed, 13 Aug 2008 13:20:00 -0700

2008 Management Briefing Seminars
Remarks by Dick Colliver, Executive Vice President, American Honda Motor Co., Inc.

Thank you, Dave. And good morning everyone. I'm really pleased to see such a good crowd today. This is annually one of the industry's largest and most important gatherings. But as I was making my way here from California ... I wondered if the economy and the difficult sales market would discourage some of you from attending.

The ability to talk to each other ... and learn from one another ... is essential to the future of our industry. So, just the fact that we're all here together is both a positive statement ... and an important step.

Having said that ... I must admit that the business conditions impacting our industry today are the most dynamic I've ever experienced. "Turbulence" doesn't begin to describe it. I've been in this business for more than 45 years. So, you might think I'm being a little too humble ... or just plain stupid ... please hold your judgment until I've finished my remarks ... but this is the first time in my career when I didn't have a clear idea about whether our efforts to stimulate sales will work.

Of course, the reason we as an industry are struggling to make sense of things ... is that our customers are struggling to make sense of it as well. They're being hit from all directions ... including a struggling economy that has made buyers more conservative ... and high gas prices that are changing what people buy and how much they drive. We don't need to go into detail on what created these challenges ... but we should spend some time talking about how we can overcome them.

Certainly we're all battling to survive. That's true for the entire industry ... automakers suppliers and dealers alike. We have our own challenges to deal with ... including rising prices for raw materials ... and higher fuel costs. And we can't pass all of these costs onto the customer. In addition to these factors ... and in part as a result of them ... the light truck market is also very challenging right now. And the combination of these factors makes for treacherous times. But no matter what your role in the industry ... in my view ... the key is not to approach survival based on short term objectives. Honda has always understood that challenging times can even present opportunity ... if your business is guided by a clear vision ... and you pursue that vision by leading your organization with a positive spirit.

None of us can control the difficult business conditions. But each of us can control the actions we take. And when we encounter rough seas and gale force headwinds ... like those we are experiencing today ... the single most important tool to ensure that you reach your ultimate destination ... is a "north star" that doesn't change with the times ... and that will help guide the way in both good times and bad.

For Honda, this "north star" is a core set of values that serve as the framework for all of our decision-making. Someone said to me recently that the market is "coming back" to Honda. But I can't agree with that view. Instead, I would suggest that our values are consistent and forward-looking ... and the market is finally catching up with us.

Honda has been receiving a lot of attention over the past few months ... because we've continued to modestly grow our sales even as the overall market is struggling. I think sometimes people believe Honda has a secret weapon that enables us to grow in these challenging times. I can assure you that we don't. Honda's success is the result of careful planning ... based on our core values ... that begins with a total focus on the customer. It's true, we've experienced slow and steady growth ... in the U.S. and globally. But the people who work for Honda think we're still a small company ... because we act like one in the way we manage details. This lean philosophy is one of our values ... and one of our strengths.

Our long-term performance trend reflects this careful approach. With few exceptions, we have maintained an annual growth rate of about 2 to 3 percent in good times and bad. For a company that likes to go fast ... in terms of the products we create ... the racing activities we love ... and the speed of change we help foster ... our business strategy is more like the tortoise than the hare.

Sure, we've taken some criticism in the past ... for not expanding into larger trucks and V8 engines. But these were strategic decisions based on our values and forward-thinking vision. I have to admit that as truck sales grew to more than 50 percent of the market ... a number of our dealers hounded us for a big V8 pickup truck and SUVs. But several months ago, one of them approached me and said ... "Hey, I'm sure glad you never listened to me about those V8s."

Rather ... we have always invested in fuel efficient technologies that make our products unique ... in manufacturing plants that provide us a measure of flexibility to build the products our customers need ... and in sales and marketing efforts that ensure our products retain their value and protect the strength of our brands. In short, we invest in the customer. But more than that ... we listen to them.

I mentioned a moment ago that I'm in my 5th decade in this business. Now that's survival! This includes the honor of working with both Chrysler and Mazda ... before joining Honda some 15 years ago. But my first job in the industry was with GMAC in the 1960s. I was the "repo king" of Kansas City. Talk about getting close to the customer! I used to sit out on the street, waiting for customers who had defaulted on their loans to come home. As soon as their front door closed, I was firing up the engine and driving away. I can remember once when I "repo-ed" three cars and a truck in the same day to the same dealer. That wasn't a pick-up truck either. I'm talking about a big tractor trailer rig with a 15-speed transmission. Try that as a getaway car. When I met the dealer on his lot he was ready to kill me. He said "Son, I can't sell 'em as fast as you're bringing 'em back."

I was doing my job ... focused on the immediate challenge ... without giving a heck of a lot of thought to the customer's relationship with the dealer or the brand. I joke about it now ... but experiences like this taught me that our entire business ... what we make and how we sell them ... must be shaped around the people who buy our products.

Today, I find that it's our industry that too often has its sights set on immediate challenges like profit ... at the expense of long-term vision. We want to return value to our shareholders just like everyone else ... but we know ... and they know ... this must be based on strengthening the customer's relationship with the brand.

In Honda, I found a company that believed in the same things that I do ... really putting the customer first in every decision. The phrase "customer satisfaction" first appeared in the Honda Company Principle in 1956 ... but it isn't some company slogan. The idea that customer satisfaction is our first priority ... and our only imperative ... is a vision that is understood throughout the company.

But really ... what is customer satisfaction? The term is used by everyone ... but I'm not sure the definition is. In our view, customer satisfaction is more than just a good sales experience ... or a free car wash when you service your car. Customer satisfaction is about a relationship with the customer that begins with developing products that fit their needs ... and forms into a bond based on their trust in those products ... and the brand. It's a relationship that is ultimately driven by loyalty that goes equally in both directions. This view of customer satisfaction is especially important now. Because in troubled times ... a strong brand gives the customer an emotional sense of security. And I think you're now seeing this factor play out in our success.

Our particular bond with the customer is based on shared values that are timeless ... things like quality and reliability ... innovation and efficiency ... that are at the heart of our ability to respond to this rapidly changing market.

Fuel efficiency is one of these core values. Small efficient vehicles are not short term strategies for Honda. They are part of a fundamental commitment that goes back to Honda's entry into the auto industry in the 1970s. I remember when Honda came on the scene with that little N600. Back then it seemed absolutely tiny ... like two motorcycles strapped together. I don't know that anyone knew enough to take the company seriously as an automaker. I didn't.

But then came the challenge of the U.S. Clean Air Act ... and the first oil shock ... with lines at the gas station that went down the block and around the corner. Almost uniquely ... Honda challenged both of these issues. And the first Honda Civic not only met the emissions standards of the Clean Air Act ... it led the U.S. EPA's first list of the vehicles with the highest fuel economy. This focus on the environment and can-do spirit helped Honda gain entry into the auto industry.

Of course, we're now facing what I guess you could call the "second oil shock." And Civic is again leading our success. But over the past 35 years what has endured within Honda is not just a product like Civic ... but the values that created it.

Over the past decade ... with cheap gas and light truck sales taking more than 50 percent of the market ... some analysts and critics questioned our strategies. But we never strayed from our commitment to small efficient vehicles. We continued to invest in original technology to advance fuel efficiency in all of our products.

Now ... our research demonstrates that there are at least three key factors driving the growing demand for more fuel efficient vehicles. First of all ... fuel efficiency is once again a pocketbook issue in America. And in that sense, we shouldn't forget that the original term ... "fuel economy" ... was coined by the federal government to help consumers find cars that could go farther on a gallon of gas. Certainly, this is a key driver of the change we are seeing in consumer behavior.

But even prior to the recent and dramatic run up in fuel prices ... the drive to increase fuel efficiency was propelled by an interest in protecting the environment ... to reduce greenhouse gas emissions that contribute to global climate change. And this concern kept Honda's focus on fuel efficiency as a priority in our vehicles.

But our research also shows that concern for the environment created a third, more psychographic component to the focus on fuel efficiency. This involves not only people who buy hybrid vehicles to make a personal statement ... but consumers who trade in their big SUVs and trucks ... because they fear friends and neighbors might ridicule them for using a big SUV just to drive back and forth to work.

The net effect of all of this ... is that people have streamlined their decision-making process. And they're moving fast. Half of the new Civic customers we talked to purchased their vehicle after being in the market for less than 4 weeks.

I'm not sure anyone can say conclusively that this shift away from light trucks is a true structural change ... or something that might trend back ... if fuel prices decline or customers grow accustomed to paying more at the pump. Most experts say the price will never go back to what it was even two years ago. But our research found people using words like hideous ... horrible ... terrible ... and insane. Clearly, this has become a very emotional issue for consumers. And we need to look at it from their perspective.

Toward that end, next spring, we will further increase the number of models we sell with high fuel efficiency with the launch of an all-new 5-door, 5-passenger dedicated hybrid car. We believe our IMA hybrid system is best suited for smaller vehicles where the fuel efficiency gains are the greatest. The challenge ... especially with small cars ... is to bring the price down to where more people can afford it. And that is our goal for this new hybrid model ... to make it affordable for a new generation of car buyers. We plan to price it below our current Civic Hybrid. And we're targeting sales of 100,000 units of this new vehicle in North America ... and we've got more hybrid vehicles on the way.

For the long term ... we continue to see the development of fuel cell vehicles as the ultimate solution. While this technology is more than a decade away from the mass market ... we know it works ... because we've been advancing it in the real world ... with real customers. In fact ... we delivered the first all-new FCX Clarity to a customer at one of my dealers in LA several weeks ago. In addition to futuristic styling ... and great performance ... this 4-door sedan gets the equivalent of 74 miles per gallon. That's nearly three-times a gasoline-powered car of the same size.

So ... sure ... the sales volumes for FCX Clarity are small right now. But we can't let the challenge of surviving today's difficult conditions distract us from our ability to survive in the future. Honda is committed to advancing real-world solutions to our world's energy and environmental concerns.

But you don't need to look to our decisions to invest in future technology to understand how much value we place on fuel efficiency at Honda. You can even see our commitment in some of the decisions we don't make. Two years ago there were some who wondered about our strategy not to add V6 power to the all-new CR-V. But we knew that fuel efficiency was one of CR-V's important values. And you can see how that vision is now in line with the direction of the market ... as CR-V became the best-selling SUV in America last year.

This commitment has earned us the highest fleet average fuel economy of any automaker over the past 15 years ... and is adding renewed strength to our product lineup. But it's too easy to explain away the success of CR-V or the increase in Civic sales as simply a result of higher gas prices. Because there are a lot of cars on the market with high fuel economy that aren't selling anywhere close to these products. The reality is that customer values are changing. And all of us need to strengthen our knowledge of who the customer is and the way they look at transportation.

I see customers starting to take a hard look at the overall cost of ownership. They're putting more value on dependability, quality and reliability ... and resale value. These are factors that help them predict the total expense of buying and owning a vehicle. So, yes, they want better gas mileage ... but they don't want to give up on all of their other needs and desires. They also want advanced safety ... and vehicles that are fun to drive. And it's all of these values together that are driving sales of the Civic. I know I sound like a salesmen ... but this is one of the important dynamics in today's market ... and everyone needs to understand what's driving this change in customer demand.

In a few months we will open a new plant, in Indiana, just the second plant we've opened in the U.S. since I joined the company in 1993. I was in Indiana two years ago ... in the town of Greensburg ... the day we announced our plan to build the plant ... and to begin with production of the Civic Sedan. I think we surprised a lot of people with that announcement back in May 2006. Considering the popularity of the Civic right now, some people may think of us as soothsayers. But I assure you that our success is a function of consistency and focus ... rather than fortune-telling.

It is a hallmark of Honda that our sales organization works closely with our production operations in North America, and on a global basis. We're always thinking ahead and planning for the future ... that's another of our core values. We make a plan ... we work the plan ... and then make adjustments as necessary.

Today, that means increasing the supply of the fuel efficient passenger cars our customers want and need. But it's a complicated issue ... because most of our light truck production is now based in North America. So, let me tell you what we've done in just the past year to manage this considerable challenge and ... as best we can ... align our business to market demand. We needed more Civics ... even before our new Indiana plant comes on line this fall. But while these changes in the market were sudden ... our ability to cope with this very difficult challenge was not.

We began introducing a new flexible manufacturing system to all of our production plants ten years ago. This system restructured our plants so they could be more flexible ... aligning our production lines with customer demand ... through reprogramming, rather than more expensive re-tooling.

Then, in late 2006 ... even before gas prices really took off ...we initiated a series of moves to produce more fuel efficient cars ... and at the same time take pressure off certain light truck models by consolidating all production of Pilot in Lincoln, Alabama. This enabled us to add production of Civic to one of our plants in Canada ... on the same line with two of our biggest vehicles ... the Ridgeline and Acura MD-X. This increased our supply of Civic by as much as 60,000 units a year. Now ... even with the added supply ... we still sold ourselves out of product. After Civic sales hit a record of more than 50-thousand in May ... we went to 40-thousand and 29-thousand the past two months ... simply due to supply.

Further, the truck market has continued to decline ... even beyond our expectation of a year ago. So ... we recently announced plans to make further adjustments. We're reducing truck production at our Alabama plant over the next three months. And early next year we will move Ridgeline production from Canada to Alabama ... while increasing Civic production a bit more in Canada and Ohio. This will help make more efficient use of our North American capacity.

Please understand ... I don't mean to suggest any of this is easy and without some pain. These changes create big challenges for the people working at our manufacturing plants and with our suppliers. It isn't often a sales guy like me gets a chance to address suppliers ... and I know some of our supplier network is out there. We don't like to move this fast ... but I want you to know we really appreciate your efforts to help us meet the needs of our customers. By attacking it with a challenging spirit ... you have helped us turn tough conditions into a positive for our customers as well as our companies. We really appreciate it.

Significantly ... this effort to manage inventory levels not only plays a critical role in responding to customer demand. It also helps us protect the value of our products in the marketplace and the value of the Honda dealerships. Because allowing inventory levels to get too high, runs the risk of closing plants temporarily ... or requiring sales tactics that would risk decreasing the value of Honda products.

At Honda, we have consistently rejected the types of short term financing deals and marketing tactics that attract customers ... but diminish the brand. We've never done fleet sales ... and that's not a brag point ... it's a strategic decision. We have higher resale value as a result.

And while market conditions have led us to use incentives more than we once did ... and certainly more than we'd like ... we have consistently maintained the lowest incentive spending in the industry. We view incentives as a tactic to help manage inventories ... not a strategy to bring people to the showroom. We have not and will not pay people to come back to our brand.

These sales strategies are cut from the same cloth as our efforts to advance fuel efficiency in our products ... and our effort to create a customer-focused production system. Our belief is that survival in good times and in bad is a function of the ability to maintain a clear focus on a long term vision ... core company values ... and the customer.

But every day, I'm reminded that we're in a never-ending struggle for survival. On June 3rd, the morning after our record May sales results were announced ... we had a meeting of top management. We had just experienced the largest sales month in our history ... with Civic as the best-selling car in the industry ... and I was feeling pretty pumped up! Then I go in to our meeting and our entire discussion was about the need to further reduce costs. So much for yesterday's news!

But this takes me back to where I began today. Because we have little control over the challenging business conditions. No matter how successful any of us are ... we all deal in our share of disappointment ... and struggles. It's easy to get down ... to become distracted. But we have to keep challenging. Earlier this year, we reminded everyone working for Honda ... and our entire dealer body ... that while we face great economic uncertainty ... we want them to approach business with a positive can-do spirit.

Now more than ever, it's important to be positive ... even when the news and sometimes the results seem headed in the wrong direction. I'm not talking about phony optimism ... or suggesting that just you smile through your tears. I am suggesting you approach your business ... no matter how difficult ... with what we at Honda call a "challenging spirit."

But perhaps it was that great icon of our industry ... the late Henry Ford ... who said it best ... "Whether you think that you can, or that you can't, you are probably right."

So ... with a strong, consistent vision serving as your "north star" to guide the way ... and with an unrelenting focus on your core values and the needs of customers ... if you approach your business with a positive can-do spirit ... I think each one of us can turn this thing around. Thank you for your attention.

Executive Remarks: 2008 North American International Auto Show Remarks by John Mendel, Executive Vice President American Honda Motor Co., Inc.

Sun, 13 Jan 2008 12:02:00 -0800

Good afternoon everyone. Stay where you are and no one gets wet. The ad you just saw is not only intended to build some real excitement for the FCX Clarity but we want to let consumers know that we think fuel cell technology has taken another big step toward the real world. It's further proof that we continue to deliver on our environmental commitment and take absolute dead aim at advancing Honda's innovative leadership. We're excited to see, now that everyone is talking about this important challenge the environment but this is a race we've been running and leading for more than thirty years. And we intend to maintain that lead and accelerate the pace of our progress. In just a few minutes, I'll be back to unveil the new Pilot prototype vehicle. But now, it's my great pleasure to introduce our global CEO, Mr. Takeo Fukui, who will share some perspective and exciting news about the future of Honda's environmental efforts.

[Fukui-san speaks]

Thank you, Mr. Fukui and hello again everyone. Hopefully, you've gotten a clear picture of where we're headed with our new hybrid and diesel technologies. Now, I'd like to shift gears to talk about the state of our Honda Division business and a new vehicle that will help carry our company to another year of record sales. 2007 was a big year for Honda. We launched the eighth-generation of our flagship Accord, Debuted our next-generation fuel cell car the FCX Clarity Began construction of our 7th auto plant in North America. And placed three Honda models on the top ten best-sellers list, including a dramatically styled new CR-V, which also took top honors as America's best-selling SUV for 2007. The result was Honda Division's twelfth consecutive year of attracting a record number of customers and 14th straight year of continuous sales growth that parallels our deepening commitment to the U.S. market both in terms of employment and investment. Let me also remind you that nearly 80% of our U.S. sales volume is produced in North America... And we're looking to carry that momentum into 2008 with projected sales of 1.4 million Honda brand cars and light trucks. And we will continue our focus on creating new value for the customer Like the Accord, CR-V and Civic before it the new, second generation Honda Pilot has its foundations set firmly in our image of the customer and what it is they truly value in a mid-size family SUV.

When the Pilot entered the market in 2002, it set a new standard for the mid-size SUV segment with its unique blend of crossover refinement, fuel efficiency and eight-passenger family SUV functionality. And let me remind you that the first generation Pilot earned six consecutive 5Best truck awards from ";Car & Driver"; magazine and that is in the face of increased competition. We've been able to advance this concept based upon the fact that Pilot like four other models we sell in America was exclusively researched, designed and developed by our U.S. R&D teams in Los Angeles and Ohio. This is the second-generation of Pilot developed by Honda's U.S. R&D operations whose understanding of the customer and the market has only gotten stronger. For 2009, we will build on Pilot's award-winning formula with a redesigned new platform that delivers a more spacious and functional interior the best balance of car-like on road dynamics and SUV toughness ...exceptional fuel economy and top-class safety performance In short a cleaner, safer, funner and BETTER IN EVERY WAY new 2009 Honda Pilot. So let's take a look at what we created in the 2009 Honda Pilot prototype.

[PRODUCT REVEAL]

This prototype model speaks clearly to the design and packaging direction we will take with the second-generation Pilot that will launch in full production dress as a 2009 model later this spring. Its strong front-end beefy pillar, crisp character lines and confident stance speak to its tried and true SUV attributes ? including ruggedness, ample space, and real off-road and towing capability. Let's take a look at the interior, where our family-oriented customers place their greatest focus
In typical Honda fashion, we focused on clever packaging and optimal use of space that is sure to set it apart in its segment. Three rows of seats for real people provide a high degree of adaptability for people and large cargo loads.

The third row also now provides enough knee room to comfortably fit an above-average-sized male. Meaning Pilot's 3rd row is not just for show it's among the most practical in the industry. These ideas reinforce Pilot's ultimate strength providing the most interior space, functionality, and flexibility in a relatively compact and efficient exterior package. Building on these traditional SUV attributes, Pilot continues to offer all-weather and off-road capabilities that this customer desires for their outdoor-oriented recreational lives. In addition, we beefed up Pilot's towing ability even more. The new Pilot will be equipped with a V-6 engine that employs the latest generation of Honda's fuel-saving ";Variable Cylinder Management"; technology with the ability to operate on 6-cylinders for power and in 4- and 3-cylinder modes for efficiency an improvement on the Pilot's existing 2-mode VCM system. It's the kind of continuous innovation and advancement that has made Honda a fuel efficiency leader.

Critical to Pilots success and consistent with our Safety for Everyone promise the new Pilot is designed to achieve the highest levels of safety in its class. This was a major focus of our U.S. design and development teams, which conducted all of the Pilot's safety development and testing at our state-of-the-art crash test center just down the road in Raymond, Ohio. For 2009, we are applying our unique ";Advanced Compatibility Engineering"; body structure to Pilot for the first time enhancing occupant protection while helping to mitigate the effects of a collision with vehicles of different sizes.

By the end of this year, ACE body structure will be on more than 90 percent of our volume in the Honda lineup. No other company or brand has made this kind of commitment to vehicle-to-vehicle compatibility - period. To achieve this high level of safety while trying to maximize fuel efficiency, the new Pilot also will have the most extensive application of high-strength steel in any Honda product to date. It's this comprehensive approach to safety that has earned us top ratings from our customers and from independent authorities like the Insurance Institute for Highway Safety. In fact, Honda will put more I I H S ";top safety pick"; vehicles on the road this year than any other brand. We're also enhancing the premium appeal of Pilot.

For the first time, customers will be able to select a new Touring trim level, equipped with premium content to reach out to new buyers. As we get closer to the spring launch, we'll be providing you with more details on the new Pilot. With its bolder styling, enhanced safety, and fuel efficiency along with a more functional, spacious and flexible interior we believe the prototype model you see here today represents a stronger, tougher, BETTER new direction for the next-generation Pilot. Thank you again for joining us, and we welcome you now to take a close look. I hope you enjoy the rest of the show.

Executive Remarks: 2008 North American International Auto Show Remarks by Takeo Fukui, President and CEO Honda Motor Co., Ltd.

Sun, 13 Jan 2008 12:02:00 -0800

Good afternoon everyone. And thank you for joining us. This is the 5th straight year I have attended the North American International Auto Show. But whenever I come to Detroit I think back to my first visit in 1974.

I was a young engineer participating in an important emissions certification test for the Civic at the EPA lab in Ann Arbor. We believed that clean air was important for the future of life on this earth. And we made it a central focus of our product development efforts.

It was November 1974 and Civic became the first vehicle to pass the new standards of the U.S. Clean Air Act based solely on engine performance. But what I remember most ...was, that the EPA inspector congratulated me for achieving the industry's top rating for fuel economy.

For the past three decades we have continued to challenge in both areas clean air and fuel efficiency. Today, every Honda and Acura vehicle sold in America individually meets or exceeds EPA Tier 2, Bin 5 the emissions standard in all 50 states even our light trucks.

Now global warming is the number one environmental issue. For every company, increasing fuel efficiency to reduce CO2 emissions is the single most important challenge we face. And with the new CAFE standards established by the U.S. government. I look at this challenge in the same way we approached the issue of clean air more than 40 years ago.

We believe that by improving fuel efficiency, we can achieve something important for the future of life on this earth. So, the challenge to create the most fuel efficient products for our customers and the environment will continue as a central focus of our product development efforts.

At Honda, we believe this challenge cannot be met with a single technology. So, we are now developing a number of new vehicles and power plants.

We think the ultimate solution is a fuel cell vehicle that sets a new world standard for cleaner emissions and high fuel efficiency through alternative fuel technology.

The hydrogen-powered FCX Clarity you see here delivers both advanced technology and advanced design and will be offered to a limited number of customers in California later this year. This vehicle promises to lead the way for the next 100 years of personal mobility.

But, for today we continue to invest in other technologies as well. Based on our engineering expertise we believe that hybrid power is best-suited for smaller vehicles where the fuel efficiency gains are the greatest. The Honda IMA system is the ideal technology for a small hybrid car because it's more compact, lightweight and lower in cost while achieving higher fuel efficiency.

Within the next few years, we are introducing two different, all-new hybrid small cars. Next year, we will launch a hybrid vehicle with a newly developed lightweight and compact IMA hybrid system.

This vehicle will achieve high fuel efficiency meet the needs of a family and be offered at a more affordable price based on Honda's efforts to significantly reduce cost. The global sales plan for this vehicle is 200,000 units including 100,000 units in North America.

We will then introduce a new hybrid sports model on a global basis based on the CR-Z you see here today. CR-Z combines environmentally responsible performance with sporty excitement.

Based on this direction, we envision that hybrid models will account for approximately 10 percent of Honda's global automobile sales by around the year 2010.

Finally, we have also developed the new i-DTEC clean diesel engine series. The first new i-DTEC engine meeting Euro5 emissions standards will go on sale in Europe this year. We will debut i-DTEC technology in the U.S. next year that will meet the same Tier2, Bin5 emissions standard as a gasoline engine vehicle. But, without the need for a tank of urea onboard.

This i-DTEC clean diesel engine will be introduced first on an Acura brand vehicle in 2009. Please take the opportunity to see the i-DTEC engine displayed in the Acura booth. This will be followed in the future by the introduction to a Honda model.

Importantly, even as we make it a priority to reduce CO2 emissions with environmentally responsible vehicle we will continue to make them fun to drive fun to use and achieve advanced safety performance. Based on this strong vision we believe that Honda will continue to meet the needs of our customers while doing our best to ensure the future of life on this earth. Thank you.

Now, I'd like to turn the presentation back over to John.

Executive Remarks: 2007 Los Angeles Auto Show Remarks by Tetsuo Iwamura

Wed, 14 Nov 2007 08:27:00 -0800

Good morning, and thank you for joining us for this world debut of Honda's all-new Fuel cell vehicle.

Today, we are introducing not only a new vehicle, but a new name, FCX Clarity.

For Honda, and the industry, this is a moment of real Clarity.

Because FCX Clarity is a name that speaks to Honda's clear vision for the future, and our company's legacy for taking action ... as well as the potential of the fuel cell vehicle to achieve the ultimate in clean mobility.

Because it delivers both advanced technology and advanced design ... FCX Clarity is a major step closer to meeting the needs of customers in the real world.

And it is our goal to make it the first fuel cell car to be placed in the hands of individual retail customers on a regular and continuing basis.

Almost 40 years ago as the threat of air pollution was becoming a very serious concern ... a group of Honda engineers adopted the words "blue skies for our children" as Honda's vision to create a cleaner world for future generations.

Based on this vision we took action to create an engine that set a new world standard for cleaner emissions ... and high fuel efficiency.

Today, even as we have continued to focus on clean air... Honda recognizes climate change and energy sustainability as two of the most critical global issues facing society.

Toward these challenges, we have focused on bringing advanced technology to market ... to further increase fuel efficiency ... and advance alternative fuels.

In this spirit ... preserving "blue skies" for future generations is still our guiding force.

And the FCX Clarity is the next step in this vision and our commitment to act upon it.

I want to thank all of our customers of the first generation FCX ... especially the city of Los Angeles ... the world's first fuel cell customer and the Spallino family ... the world's first fuel cell family.

They are not only our customers ... they have served the world as pioneers and partners in our shared effort to advance the cause of a cleaner, more efficient and sustainable mobility.

But the best way to serve our customers ... and meet our responsibility as an automaker ... is to continue to advance this technology and bring it to market as soon as possible.

We realize that there are many questions about fuel cell vehicles ... about the cost... about the fuel... and about how long it will take to bring to the mass market. We admit that the challenges we still face are very real.

But so is our determination to overcome them.

Please consider how far we've come in a very short time.

Over the past seven years, we have reduced the fuel cell stack to one-fifth its original size.

We have reduced by half the number of parts in the stack, reducing manufacturing complexity.

And we have achieved this while increasing performance ...

range ...

style ...

passenger and cargo space ...

and the ability to start and operate in extreme hot and cold weather conditions.

Step by step, with continuous effort, commitment and focus on the customer, we are overcoming all of these obstacles.

The challenges are real.

But so is Honda's commitment to continue advancement ... and so is the progress we are making.

We have a vision to meet this challenge, to lead the way for the next 100 years of personal mobility.

And this new FCX Clarity represents our vision ... in action.

Thank you.

Executive Remarks: 2007 Los Angeles Auto Show Remarks by Dan Bonawitz

Wed, 14 Nov 2007 08:16:00 -0800

Good morning everyone, and thank you Mr. Iwamura.

This is an important day not only for Honda ... but the entire industry.

Today, we give our new fuel cell vehicle a name ... to herald a vehicle so substantially different from the model it replaces.

And because of the clear progress we have made ... and continue to make ... in taking fuel cell technology from the research lab to the real world.

We have made a fundamental breakthrough in fuel cell technology with the Honda V-Flow platform ... a technology that enabled us to create something previously unachievable in a fuel cell vehicle

... a sedan with outstanding levels of performance, range and comfort.

And when we begin deliveries of the FCX Clarity next summer, it will happen without special permits, without daily visits by engineers in white lab coats, and without the imposition of limits on its use by the customer.

This is an advanced technology vehicle unlike anything else being offered in the industry today.

The FCX Clarity is a sleek, elegant and futuristic sedan that speaks with real authority to the future potential of the fuel cell vehicle as a mainstream technology.

When the FCX Clarity is launched next year, it will be the first commercial vehicle powered by lithium ion battery technology....

With substantially higher output than existing commercial technology ... and a battery pack that is 50% smaller and 40% lighter than the ultra capacitor on the existing FCX.

The FCX Clarity's single hydrogen storage tank has about 10 percent higher storage capacity, yet supports a driving range of 270 miles ... that is up to 30% higher than the current FCX's 210 miles.

The FCX Clarity's powertrain ... including the electric motor, the vertically-oriented fuel cell stack, and lithium ion battery pack ... is 45% smaller than our current FCX ... or roughly the same size as a hybrid powertrain.

And because the values of clean, safe and fun are fundamental to every Honda vehicle, the Clarity will meet all government safety standards.

There is nothing "experimental" about this car.

When we talk about safety, we back it up with certification just as we do with any other vehicle.

Same with fuel efficiency.

No talk about internal test data.

The Clarity's fuel economy will be EPA-certified and displayed right on the window sticker.

And it will be up a full 20 percent from the current model FCX ... we expect approximately 68 miles per gallon combined fuel economy.

That's roughly 2 times the fuel economy of an accord, and 1.5 times the economy of a comparable hybrid model.

Clean, safe and fun, the Clarity turns out 100 kilowatts of high-torque power for a truly new and exhilarating driving experience ...

A forward-looking take on Honda's fun-to-drive dna. Mid-to high-range acceleration is vastly improved from the current model, with more than a 25 percent improvement in the power-to-weight ratio, in part from a roughly 400 pound reduction in fuel cell powertrain weight.

And while our California customers may not appreciate this so much, the FCX's breakthrough ability to start and operate in sub-zero temperatures has been further improved ... to minus 22 degrees fahrenheit ... about the same level as a gasoline car.

It will also perform reliably in extreme heat, as we have proven with our existing vehicle through deployments with our customers in southern California and Las Vegas.

What our customers will certainly appreciate is a level of style and advanced, premium content designed to make the FCX Clarity appealing for more than just its rational environmental merits.

Even the interior is more environmentally responsible... with interior surfaces made of plant-derived Honda bio-fabrics.

And it is these virtues that we think will ultimately make the FCX Clarity a very compelling proposition with people who want to be on the absolute cutting edge of clean, efficient and gasoline-free automotive technology.

(pause)

But, as Mr. Iwamura alluded to earlier, we are not here just to show you a car... we're here to demonstrate our vision in action.

Tomorrow, we will be conducting VIP ride-and-drives right outside this hall.

I encourage each of you to take a few moments tomorrow to visit with us outside of the west hall on Gilbert Lindsay drive and to see what some other constituents for this technology have to say about the Clarity.

With deliveries beginning early next summer, we are planning for a 3-year lease program with a price of $600 dollars per month.

I know you will have questions about sales volume.

But we will not be talking about our volume plans until closer to the launch date, next summer.

But please understand, we are absolutely committed to a 3-year program of customer deliveries aimed at long-term and continuous use that will put our technology to the only test that really matters ... how it works with real people in the real world.

As part of this customer-focused effort we will develop a service infrastructure that provides customers with the best balance of convenience and dedicated fuel cell service support.

We will do this by working with our dealerships as our customer's frontline.

Then Honda will perform all required work at a dedicated service facility that will be located in the greater Los Angeles area.

This is a symbol of how serious we are about the future of fuel cells.

In terms of retail customers, we will focus on individuals who live near hydrogen refueling stations in Santa Monica, Torrance and Irvine ... and whose driving habits support regular, daily use and a variety of driving conditions. There will also be a number of fleet applications where there exists a centralized refueling capability, such as already exists with our current fleet customer base.

For the future of refueling ... And with an eye toward wider deployment of our fuel cell technology in the future ... we are continuing to advance our experimental home energy station technology.

This fourth-generation is now 75 percent smaller than the first-generation system, while reducing co 2 emissions by 30 percent and energy costs by half for a typical household in California.

The home energy station produces hydrogen from natural gas while generating heat and electricity for the home.

This device has been installed at our local Honda R&D facility, alongside our existing solar-powered hydrogen station.

Finally, as a further affirmation of our commitment to fuel cell technology ... And the progress achieved through the first generation Honda FCX ... I'd like to recognize a visionary leader who two months ago became our 3rd individual customer.

He's someone well known to all of you, the former secretary of the California EPA.

In fact, his knowledge and experience with alternative fuel technologies and his role in helping create California's hydrogen highway makes him a perfect addition as a Honda fuel cell vehicle customer.

I'd like to ask Mr. Terry Tamminen to stand.

Thank you, terry ... both for your decision to become an FCX customer ... snd for your leadership and commitment to help advance more environmentally responsible transportation.

And Terry is seated alongside two other members of our Honda fuel cell family, our two other retail customers: Sandy Spallino and Q'orianka Kilcher ... As early adopters you are not only our customers, but partners who are helping us pioneer this advanced technology.

Thank you for being here.

(pause)

To the men and women who have helped create our all-new FCX Clarity this is a very emotional day.

But at Honda, passion and emotion are not something we wear on our sleeves ... it's something you find in our products.

So, please come up and take a closer look at Honda's vision ... and action... for the next 100 years of personal mobility.

Thank you and enjoy the rest of the show.

Executive Remarks: Remarks for Yuzo Uenohara

Mon, 19 Mar 2007 09:38:00 -0700

Good morning everyone. Thank you for joining us on this day of celebration for Honda and Indiana.

There are many important people here today ... and I want to thank Governor Daniels and Congressman Pence for joining us. But, maybe no one is more important than the students who join us from the schools in Greensburg and Decatur County.

These students represent the future for Indiana and for Honda. I want you to know that we look forward to our future together, and that we need your creativity, your spirit, and your ideas. Together, we look forward to dreaming of what is possible, and turning our dreams into reality.

At Honda, when it comes to a good idea, a person's title or rank makes no difference. What matters is what is best for our customers ... and our associates. Over the years, we will ask the associates of Honda Manufacturing of Indiana for their ideas ... to make our products better and the plant the safest place it can be.

This is the Honda way. And, this spirit will guide us. With respect for each other ... for the environment ... and for the community. Many associates. Many backgrounds. But one team. Working together for Honda ... and Indiana.

I know there is still much excitement about Honda coming to Indiana. This is an exciting project for us, too. But I must ask you... "Please be patient." Many things, including details about hiring, remain to be finalized.

But I can assure you we are on schedule. It is wonderful to realize that by the end of next year, many new Honda Civics built by many new Honda associates, will roll off the assembly line near this spot.

In the future, some of you may become our Honda associates. But all of you will be our neighbors. In the days ahead, the process of becoming neighbors may cause you some inconvenience. Building a new plant will mean a few more trucks and a little more noise for a while. We hope you will accept our apologies in advance.

Please understand that we know becoming a good neighbor doesn't mean simply moving in. A good neighbor is friendly and helpful. We plan to be good neighbors. And, we are happy to be your neighbor. We want to become part of Indiana, part of Decatur County - and part of Greensburg.

Thank you for welcoming us to our new home.

Executive Remarks: Remarks for Koichi Kondo

Mon, 19 Mar 2007 09:37:00 -0700

Good morning, Governor Daniels, Congressman Pence and special guests. It is great to be back in Indiana.

We are here today to break ground for a new automobile plant. And of course, here in Indiana, we will create an efficient and flexible manufacturing environment. However, manufacturing is really about people ... not about a building or equipment. So, importantly, this new auto plant will also be a great place for everyone to work. In this way, we are breaking ground for more than a factory. We are breaking new ground in our relationship with the people of Indiana ... and our customers in America.

This is our first plant in Indiana. But it will become one of 17 major Honda plants in North America ... where we build everything from cars, trucks and motorcycles ... to engines, lawn mowers ... and even jet planes.

The concept for this plant is clear. We will employ some of Honda's most advanced production technologies and factory design. But with a renewed focus on Honda's customer-driven philosophy .... it will also be one of the most simple. This new plant will place little distance between management and the associates on the factory floor. From the start, we will first help our new associates learn about Honda's focus on the customer ... and commitment to an outstanding level of quality. Then, we will empower them to make good decisions to achieve it.

I know you would like to hear about what product we will build in Indiana. Based on the needs of our customers and market demand, we have determined that the Honda Civic sedan is the right vehicle for this plant. More than 30 years ago, Civic was the model that helped establish Honda as an auto company. And a little more than a year ago, Civic was named Car of the Year in America. This is a very important product for our company, and building the Civic is a big responsibility. That should tell you how confident we are in the people of Indiana.

Nine months ago, I came to Greensburg to announce this new auto plant.. It was an exciting day. And I had a chance to meet many of you, including Governor Daniels, Mayor Manus and Commissioner Buening, who join me on stage today.

But I also had the opportunity to meet many members of the community - who took the time to welcome Honda to Greensburg. And it was then ... while meeting people of this community ... that I knew we had made the right decision in coming to Indiana.

In fact, we are so proud to be here ... that we decided to put the name of this great state in the name of our new company. From this day forward, the new company we are establishing here will be known as "Honda Manufacturing of Indiana." I hope you like it.

Now, it is my pleasure to introduce the first president of Honda Manufacturing of Indiana ... Mr. Yuzo Uenohara. Thank you.

Executive Remarks: Remarks by Michimasa Fujino, President & CEO, Honda Aircraft Company, Inc.

Thu, 08 Feb 2007 23:00:00 -0800

Thank you, Jeffrey, and good morning everyone. Thank you for joining us this morning at the home of HondaJet. As you have waited for this day, I too, have been waiting - for a long time!

For the last five years, Greensboro has served as our home, as we have worked to take the dream of HondaJet from the drawing board to the sky. It was a very challenging journey that we began in 2001... right here in this facility. In fact, we assembled and tested HondaJet inside these walls.

Also, HondaJet took its very first flight from this airport on December 3, 2003, exactly two weeks before the 100th anniversary of the Wright brother's first flight. So, I would like to say, very humbly, that North Carolina -- the birthplace of aviation -- is also the birthplace of the HondaJet.

In this sense, I think it is best to announce our future plans for HondaJet in Greensboro and inside this facility. Today, I am very pleased and honored to announce our plans to establish the world headquarters of Honda Aircraft Company right here in Greensboro.

We will begin with the construction of a new, 215,000-square foot, headquarters facility. This new facility will become the center of our company's worldwide activity in the realm of aviation.

This includes the continued development of HondaJet, as well as sales, marketing and service, and also research for future technical development. The people working in this facility will be very high-skilled individuals with backgrounds in aeronautical engineering and other technical areas.

In addition to our new world headquarters, I am also pleased to announce today that Greensboro will be the home to a new state-of-the-art manufacturing plant for the production of HondaJet. Now we are moving steadily toward our goal of delivering the first HondaJet in 2010.

We are now working very hard to define the exact specifications of this new plant... including size, production capacity and capital investment. So, I ask that you please be patient with us as we work to finalize these plans. We look forward to sharing more information in the very near future.

These Greensboro facilities will be responsible for HondaJet's continued evolution from a prototype aircraft to a full fledged production airplane... one that sets new standards for performance, quality and comfort in the very light jet and light jet market.

These new facilities will also serve as delivery centers for HondaJet. I am a little bit excited to imagine that all of our customers from around the U.S. - and eventually from around the world - will come here to Greensboro to accept delivery of their HondaJet.

In order to achieve our goals for HondaJet, and to ensure a product of the highest quality and value to our customers, there were many things we needed to consider in locating these operations.

In a sense, I am very fortunate that we found in Greensboro and North Carolina a place and a people who share in our vision and our values. This is a place with a long-term vision for economic growth and prosperity.

Of course, there were important issues we had to consider, such as good support from the airport for our operation and testing activity, good weather characteristics, a good business and living environment, accessibility and good shipping logistics such as an overnight air freight hub location.

Other important issues were the quality of people and resources for training. Like all great endeavors, it is the people who will determine ultimate success.

Here again, we were very pleased to find good investments being made in basic education, local schools, worker training and advanced learning, including the activities taking place in North Carolina's research triangle.

Going forward, we will also establish a relationship with Guilford Technical College for the education and training of future Honda Aircraft Company associates.

Together with positive economic momentum and many new businesses coming to North Carolina, it is my strong hope that our project and Honda Aircraft Company could make a positive contribution to this community.

As you know, Honda is producing a variety of innovative products automobiles, motorcycles, and power products all these products speak for themselves about the spirit of Honda innovation. But today, I can not be so quiet.

HondaJet employs many advanced technologies. As you can see for yourself, HondaJet employs a new concept called an over-the-wing engine mount configuration. This reduces drag at high speeds and provides for a more spacious cabin and luggage area.

Also, HondaJet employs advanced aerodynamics, called natural laminar flow technology. Both the fuselage nose and wing employ this design that further improves efficiency. Finally HondaJet's fuselage structure is made entirely of composite materials, which reduces weight as well as manufacturing cost.

Together, these features help provide HondaJet with 30-35 percent greater fuel efficiency, 10 percent higher cruise speed, and more cabin and luggage space compared to conventional jets in this class.

Finally, as with all Honda products, we are committed to delivering a jet of the very highest quality. This is our basic commitment to our customers, our business partners and the communities where we do business.

I proposed the HondaJet project to our management in 1997. After the project was accepted, I was looking for a facility location in the United States in 1999. I visited various places all over the United States by myself. But I still remember that when I landed at Greensboro, I immediately felt something here. This inspiration was similar to what I had when I drew the very first sketch of the HondaJet. I felt the energy of Greensboro, and I also found people who love aviation from their heart and I really appreciate the warm hospitality of the people here.

Since that time, I met many people who have supported our life and family. All the support we have received from the people of Greensboro has been a big encouragement for me. I know many of our associates have a similar feeling.

So, now, is the time for the HondaJet team to respond to your kindness and start another challenge and venture with the people of this community and state. Today, at the Honda Aircraft Company, we are planting our feet firmly on the ground in Greensboro, North Carolina.

Thank you very much.

Executive Remarks: NADA 2007 Keynote Address

Sat, 03 Feb 2007 16:33:00 -0800

Richard Colliver
Executive Vice President, Automobile Sales
American Honda Motor Co., Inc.
February 3, 2007

Good afternoon ladies and gentlemen. It is a heartfelt pleasure for me to be with you here in Las Vegas. You know I never thought that in the twilight of my career, I would have a chance to address the entire universe of automobile dealers in America.

So, it's a real privilege to be asked to share my thoughts and perspectives with you today. But, I'd like to begin by offering a salute to a good friend and your outgoing chairman, William Bradshaw. William is a great dealer, and owns two of our better stores. Like many of you, William has passed down a passion for this business to his children.

A few years ago I hired his daughter, Angie, as a trainee at American Honda. She had talent and I could see her potential. But then I brought in a nice looking guy, one of my best and brightest from our zone office in Texas. I should have known better because within a year both of them had taken off, with each other. They ended up in South Carolina working for William. Now I know why he calls his store "Breakaway" Honda. But congratulations, William, on a great year and thanks for your tremendous commitment and dedication to NADA and the auto industry.

While I'm at it, I'd like to welcome the incoming chairman of NADA. I know Dale Willey is going to be a terrific chairman. And as an old Kansas boy myself, I'm really happy to see a "Jayhawk" heading NADA for the coming year.

It has been a long time since I called Coffeyville, Kansas "home." But looking back makes me appreciate what a great industry we work in and what a great country we live in; that a young kid growing up in a little town on the border of Kansas and Oklahoma could work to achieve a leadership position within this industry, and with a global enterprise like Honda.

Growing up in a town of 12-thousand people had its limitations. Sometimes we had to find unique ways to get things done. For instance at Coffeyville High School they taught driver education and sex education in the same car, and sometimes at the same time.

I left Coffeyville at age 19, but fortunately I had taken that class. And maybe a few of you had the same experience. But growing up in a small town had its advantages, too. I think it's one of the reasons I have such a passion for this business.

I had my first car by the age of 13, and, by 14 I had my driver's license. You know, you could get away with things like that in the 1950s - out on the plains of Kansas. If you could see over the dash, the police kind of looked the other way. I also remember the pure joy of visiting our local car dealer. It was an experience we looked forward to, with excitement and anticipation. We couldn't wait to see what new cars Detroit would send our way each fall. More than that, dealers were pillars of the community: respected, admired and trusted.

Trust, now there's a word. If you think about it, it's the single most important word in our business. Trust is the essential ingredient in the relationship between each of you and your customers. Trust is the determining factor in the reputation of our products and brands, and it's central to my focus today. Trust is the foundation of the relationship between dealers and manufacturers. Unfortunately I don't think that's always the case today. Too often we're distracted by tactics, instead of focused on values.

We square off like opponents when we should join hands as partners. A partnership is defined as two or more people in the same business sharing its profits and risks. But in this industry, we share more than just profit and risk, don't we? We share the single most important element of our business: the customer.

So today, I want to spend a little time talking about trust and how we must work together to achieve it for the future of our industry and the benefit of our customers. I like to think that together we are the custodians of this great industry with the responsibility to advance it and improve it for future generations.

And we hold this responsibility at a very challenging time. Our industry continues to experience profound change. Change that is driven by fluctuating fuel prices, economic conditions, demand for new advanced technologies and by the increasing and varied expectations of a new breed of customer who are empowered by newer and faster methods of obtaining information.

In the face of these dynamic forces, trust is more important than ever. And to sustain a high level of trust, I'm convinced we can't approach it tactically. You can't earn trust through a sales program or an incentive campaign. It's a higher calling that requires something to believe in and something to keep everyone on the same page. Trust must be built upon shared values that will sustain a relationship through even the most difficult of times. And I really believe the process begins with understanding one another.

As manufacturers, we have to understand you and your business and your local market. And as dealers, you must understand the unique values of your manufacturer. I know that most of you have more than one brand in your portfolio. But you can't approach us all the same way. We have different histories and corporate cultures, believe in different things and place different priorities on the way we manage our business.

I have had the honor of working for several different automakers. But, in Honda, I found a company that believed in the same things that I do: where trust and respect are the foundation for teamwork and everyone is treated fairly, with an opportunity to fulfill their potential.

I know some of you might think Honda and other Japanese companies are a little too philosophical. But when a philosophy is shared by everyone and lived every day, it isn't just philosophy. It becomes a way of life. And that's the way it is with us. This philosophy of respect also serves as the foundation of our commitment to the customer.

I know the phrase "Customer Satisfaction" has become a buzzword in virtually every industry. And there can be no more important objective. But I bet you didn't know that the original J.D. Power & Associates Customer Satisfaction Index grew out of discussions with Honda management more than 25 years ago.

At Honda, the pathway to customer satisfaction and trust was passed down directly from our founder Soichiro Honda. It's an approach we call "The Three Joys." Here in Vegas, The Three Joys might sound like the name of the newest "Cirque de Soleil" show, or some club off the strip you went to last night. But for 50 years, The Three Joys of buying, selling, and creating mean our dealers really cannot be satisfied until our customers are fulfilled, and none of us at Honda can feel satisfaction until both our customers and dealers are happy. When you have a belief system like that and you follow it everyday, the inevitable result is trust.

They say trust takes years to build and only seconds to destroy. And Honda found that out the hard way. When I joined the company in 1993, trust was not only missing from our relationship with many dealers, it was in shambles. I don't need to recount it in any detail now, but a few top sales executives who preceded me at American Honda violated the company's trust, and the trust of our dealers.

Fortunately, it wasn't a case of a bad company, or the wrong set of core values. It was a case of a good business model gone wrong. But did we emerge from this crisis with the trust of all of our dealers? Understandably not. I don't like to live in the past, but as Winston Churchill once said, "The longer you look back, the farther you can look forward." So, by acknowledging past transgressions we work to ensure that they never happen again. Importantly, we recognized that we had to rebuild and restore relationships with our dealers.

There's something critical to understand about trust and how it is achieved in the world of business. People can trust a brand or its products based on the consistent achievement of dependability, quality, and reliability, and we work to accomplish that with our customers. But trust in a business relationship is not with a company or a brand. Trust is something that occurs between people. So we set out to rebuild relationships with our dealers and earn back trust through the shoe leather method.

We focused on listening and learning, and I went out to meet both my dealers and my people in the zone who worked with them on a daily basis. We approached this as an incredible opportunity to build positive relationships the right way. And that's exactly what we did.

Guiding me in this effort was a depth of experience gained in my years at Chrysler and Mazda. But I must say that the real teachers in my 45 years in this industry were the dealers I encountered along the way. And the biggest thing that I learned from all of you is simply to treat people with respect. Just like Honda's fundamental philosophy, it's common sense.

Whether it's an individual customer, an employee, or a dealer, you have to listen, and talk with them, not down at them. And if you're going to get anyone's cooperation you have to create teamwork based on mutual trust and respect and by understanding the other guy's situation.

Which makes me think back to my first job in the industry, in the 1960s. I was with GMAC and I was the "repo king" of Kansas City. Talk about getting close to the customer! I used to sit out on the street, waiting for customers who had defaulted on their loans to come home. As soon as their front door closed, I was firing up the engine and driving away. I can remember once when I "repo-ed" three cars and a truck in the same day to the same dealer. Not a pick-up truck. I'm talking about a big tractor trailer rig with a 15-speed transmission. Try that as a getaway car. I'll never forget it. When I met the dealer on his lot he was ready to kill me.

He said "Son, I can't sell 'em as fast as you're bringing 'em back." I thought I was doing a helluva job but I was driving the dealer crazy. But you learn from those situations.

One thing I learned is that smaller dealers are some of the best in the business because the dealer principal has to do it all. I really believe that today's automobile dealer is one of the last true entrepreneurs in America. You have a tremendous amount of money invested in this industry, and we respect that. You're the maverick, the person who has kept the business who hasn't bent to consolidators. That's important because it means there's no distance between dealer principal and customer.

For Honda, achieving trust with the customer is the key to our relationship with our dealers. While we want to achieve the highest levels of customer satisfaction, at the same time, we recognize that our dealers need to achieve a higher level of profitability. We want our dealers profitable and we work to help make that happen. We want them happy and prosperous and able to invest in their business in order to constantly stay on the leading edge of advances that improve customer care. That's part of the trusting relationship.

While we still have room to improve, we have made great progress in these efforts by working closely with our dealers on a number of initiatives including a strong leasing program, a certified used car program, a major effort focused on continuous improvement, and a regional marketing program. With the significant help of our dealers, each of these initiatives either broke new ground or set a new standard in the industry. These strategies have also helped carry us to record sales results for 10 straight years, more than double the 700-thousand cars we sold in 1993 the year I joined the company.

So, to our Honda and Acura dealers out there I congratulate you and thank you. I am indebted to your efforts in helping us achieve this record. Importantly, we accomplished all of this as a family with very limited growth in our dealer network. However, we've had some expansion. One area of focus was to develop the diversity of our dealer network reaching out to ethnic minority business owners because we want our family of dealers to reflect the families of America. We believe in that. I believe in that. But, by and large, we have succeeded through enhancing our existing dealer organization to ensure their success and profitability.

Most of the programs we've introduced were developed with the guidance and support of our dealers, especially our National Dealer Advisory Board. Were some of our dealers skeptical about certain programs? You bet! But sustaining trust enables us to understand each other's point of view and resolve any disagreements effectively through open and respectful communications. We also have organizations like NADA to help us. NADA plays an important role in informing and improving the working relationships between dealers and OEMs. Each year, the NADA dealer satisfaction index provides an opportunity for all dealers, large and small, to send a message to us manufacturers. And we take it to heart. Frankly, we don't make major changes without consulting our dealer advisory board and NADA.

When it comes to building and maintaining trust and respect, I know there are lots of good role models in this room. But one of the best I ever met passed away last Fall, a man most of you knew and respected, Dave Mungenast, Sr. Dave was an incredible and inspirational Honda and Acura dealer in St. Louis, Missouri, and the entire global family of Honda was saddened by this loss.

Dave was committed to NADA, but he was also an ardent supporter and former chairman of AIADA. I think we can learn from his example. Dave had the right idea that the efforts of NADA and AIADA go hand in hand and we can and should support both organizations. I hope you will.

We're in Las Vegas, and I know the old wisecrack is "trust everybody ... but always cut the cards." But the bottom line is this; the success of your business and my business and the key to the future of the auto industry is right here in this room. It's all of us. So, I want to leave you today with a challenge for all of us. We have to make a choice to work together and communicate openly not through lawyers or the media but through our own initiative.

Remember that in any relationship the essence of trust is not in its bind, but in its bond. And to achieve this bond between us we have to focus on core beliefs - beliefs that will sustain the relationship in both good times and bad. As individual companies and dealers, and through organizations like NADA, let's make relationships based on both teamwork and trust the absolute bedrock of our industry.

It reminds me of my football playing days back at Pittsburg State University. That's Pittsburg without an "h" - for those of you from back East. What you learn playing a team sport like football is that you have to depend on the other ten guys on the field. Without teamwork you can't be successful. You might start in the heat of summer as a group of peo

Executive Remarks: Accord Coupe Concept Remarks by John Mendel

Mon, 08 Jan 2007 07:29:00 -0800

Senior Vice President, Auto Operations
American Honda Motor Co., Inc.
2007 North American International Auto Show
January 8, 2007

Hello everyone, and good morning.

You know, year after year, it never ceases to amaze me just how big this show really has become. It's more than just an auto show - it's an industry extravaganza. It's a world stage, on which car companies roll out some their most extravagant concepts or most significant new vehicles.

But from our perspective, the size of a show is determined by the number of news media that attend our events. And I must say...this is an impressive gathering... and we sincerely appreciate your interest. We think your interest will be rewarded this year... and then some.

Over the last couple of years we have unveiled significant all-new entries at opposite ends of the spectrum... with the Ridgeline pickup truck and the subcompact Honda Fit.

This year, our target falls squarely between those two models - in the mid-size segment - the second biggest in the automotive marketplace. So, in a few minutes we plan to provide you a glimpse of the future... of the single most important product in Honda's North American lineup... and a product that has come to define Honda in this market.

But first, I'd like to take this opportunity to update you on the year we just finished - a year that saw the introduction of the all-new CR-V crossover SUV and the Subcompact Honda Fit.

Both the new Fit and CR-V have taken the market by storm delivering the right levels of safety, refinement, flexibility, efficiency, and performance. A unique blend of distinctly Honda attributes that customers really embrace. And the sales numbers support that.

CR-V finished the year up 13.6%, while Fit was sold out for most of the year finishing with sales of 27,934 units. These two new models, plus the addition of the SC to the Element line-up, and a new 4 door version of the hot selling Civic Si,
pushed total Honda sales to more than 1.3 million units. Next year, we expect Honda brand sales to exceed 1.36 million units. That's consistent with our philosophy of steady, sustainable growth.

Beyond just sheer sales volume, the past year has seen several other significant Honda accomplishments... Achievements that clearly reinforce our Clean, Safe and Fun brand values and that are consistent with our mission of being a company that society wants to exist.

When it comes to being a clean car company, Honda has staked out a clear leadership position from day one. This is underscored by the fact that Honda is the most fuel efficient car company in America. Fuel economy has been part of our company's strategy from the beginning... not a marketing initiative that rises and falls along with the price of gas.

Perhaps the most striking symbol of Honda's technological and environmental leadership is a vehicle that is both fuel efficient and zero emissions ... the FCX Fuel Cell vehicle... which is the only FCV on the road today that is certified street legal by the U.S. government. This has enabled us to put real customers behind the wheel of the FCX and turn them loose on American roads. And the lessons learned from their experience has helped pave the way for the next generation FCX of tomorrow...like the one you see here which will arrive in 2008. You see it's not such a distant tomorrow.

Honda - more than any other car company - has whittled away, one by one, at the barriers to the market viability of fuel cell vehicles ... by addressing the issues of packaging, styling, performance, cold start, and range.

Importantly, Honda is also the only car company with the vision and commitment for overcoming the hydrogen infrastructure barrier with our experimental Home Energy Station, for home refueling.

While we see hydrogen fuel cells as the ultimate solution to CO2 reduction and energy sustainability, Honda is paving the way with several bridge technologies.

We are the only auto manufacturer selling a natural gas vehicle - the Civic GX -
to retail customers. This is the cleanest car on the market today... with near zero emissions, and the only one that offers the convenience of home refueling.

On the hybrid front, we have also announced plans to introduce a new hybrid small car in 2009... able to meet the needs of a family, with ultra high fuel efficiency but at a much more affordable price.

On the safety front, the 2007 model year saw the fulfillment of our Safety for Everyone Initiative which includes a core suite of advanced safety technologies on every car.

As a result, not only have we demonstrated that it's possible to enhance the safety of small cars... Honda is the only full-line automaker with a complete line-up of minivans, SUVs and trucks that have earned 5-star safety ratings. That means 5-STAR safety comes standard on all Honda trucks.

Further, this fall, both Pilot and the all-new CR-V earned a Best Pick rating from the Insurance Institute for Highway Safety. Please consider that a decade ago, we barely entered the truck market and now we set the industry standard for truck safety.

And this leadership has begun to gain attention... even from those who frequently challenge the auto industry. As reported earlier this year, the president of the Insurance Institute for Highway Safety said that Honda's Safety for Everyone initiative has," pulled the whole industry ahead." We take that as high praise...
consistent with our vision of being a company that society wants to exist and an acknowledgment of our leadership.

Now as we look ahead to the 2008 model year we turn our attention to the cornerstone of the Honda model line-up, the Accord.

For Honda, the Accord represents the flagship of our car line-up, and our single best selling model. In fact, total U.S. sales of Accord are approaching 10 million units.

For the industry, Accord has represented the benchmark for more than three decades ... the vehicle every midsize car aspires to be.

But there are other measures. Accord has appeared on Car and Driver magazine's 10-Best list twenty-one times and the current model continues to win comparison tests in magazines and on the showroom floor even in its 5th year on the market... competing head to head against all-new models.

This year marks the 25th year of Honda's U.S. auto production, and Accord was the first Japanese nameplate car to be built in this country. So for many reasons, Accord is perhaps our single most comprehensive expression of Honda's DNA and brand values. And it's about to take on a whole new look.

Ladies and Gentlemen, let's take a first look at what's in store for the future of this iconic Honda...the Accord Coupe Concept.

For the 2008 model year, Accord enters its 32nd year and 8th generation. And before I continue I should tell you that the styling concept you see here is an accurate representation of what the next generation Accord coupe will look like.

While some of our competitors are moving away from coupes, we have a great deal of confidence in the next generation Accord Coupe. In fact, research shows that the coupe segment will once again experience growth- of as much as 34 percent - between now and 2011.

But there's more to our strategy than just volume growth. It's an opportunity to reach out to a young, career-oriented, and loyal buyer. Only 12 percent of Accord sedan buyers are under 30 while more than three times that number, 39 percent of Accord coupe buyers are under 30 years old. So, this will continue to be an extremely important model for us.

The all-new 2008 Accord will arrive in dealerships this Fall - and while it is too early to disclose many details, I can tell you that it will serve as a clear expression of Honda's clean, safe, and fun brand values.

The 2008 Accord will come to market with the next generation of Honda's Variable Cylinder Management technology for a significant improvement in real world fuel economy.

Additionally, the 2008 Accord also will feature something none of its competitors can boast ... the next application of Honda's Advanced Compatibility Engineering- or ACE - body structure.
This means that approximately 90 percent of Honda cars sold in the U.S. will feature this unique, important and industry-leading technology. This is another one of those technologies we hope the entire industry will follow.

Of course, what has put Accord on the 10-best list for more than two decades...
is the fact that it has always been fun. And this vehicle is no exception... making the same quantum leap forward that the all new Civic did last year... With Fun in terms of bold new styling... Fun in terms of offering a sporty coupe variant.... And fun in terms of offering the driver a rewarding, engaging, and exhilarating driving experience.

The next generation model promises to elevate the Accord driving experience to an even higher level. Viewed together... the elegant combination of these attributes--along with the refinement, quality and low cost of ownership that defines Accord ... is again what will make it an industry benchmark.

It's therefore our intention to bring the next generation Accord to market as the boldest ... roomiest ... most refined ... and most exhilarating car in the segment. Indeed, a new benchmark.

As we get closer to the launch ... more details will become available. But with a
powerful stance, long hood, deeply sculpted lower body, and a fast roofline, we think what you see here today represents a bold new styling direction for the entire Accord lineup.

Thank you again for joining us, and I hope you enjoy the rest of the show.

Executive Remarks: Remarks by Michimasa Fujino President & CEO Honda Aircraft Company, Inc.

Tue, 17 Oct 2006 16:05:00 -0700

Today, Honda takes another step toward the market introduction of HondaJet. Since we announced the commercialization of HondaJet at Oshkosh, we have been moving at a hectic pace. We established a new company, the Honda Aircraft Company in Greensboro, North Carolina, to oversee further development, marketing, production, sales and service of HondaJet.

And, after we announced at Oshkosh, I received many congratulatory notes and emails. Not only from customers but also from American friends working for other airframe manufacturers and from colleagues at NASA and the FAA. I have always appreciated the fairness and generosity of American people toward persons who keep challenging to create something new. So today, I am very honored to share this moment with you.

Over the last two and a half years, we conducted flight testing to validate HondaJet's design and performance. Based on these tests and extensive market studies, we went from a prototype aircraft to achieving the specifications of the production HondaJet.

HondaJet now offers a maximum speed of 420kt with fuel efficiency that is about 30-to-35 percent better at cruise than those of similar size jets. We achieved this level of efficiency without any compromise to the HondaJet concept. That means offering a superior combination of high speed performance and high fuel efficiency at the same time.

As for range performance, HondaJet's VFR range is 1400nm, and IFR range is 1180 nm. Based on our extensive market analysis, this covers the majority of the business and private use for this class of jet.

By employing the unique over-the-wing-engine mount design, HondaJet is also able to provide a new level of passenger comfort and utility. Cabin length is best-in-class and also baggage capacity is much larger than the competition.

Today, we are very excited to showcase the interior concept of HondaJet for the very first time. Please take a look at this early concept interior mock-up for the HondaJet standard configuration. In addition, to satisfy strong demand from air-taxi operators, we will provide HondaJet in an eight seat "air taxi" configuration as well. The HondaJet also features the advanced GE-Honda HF-120 engine and also a true state-of-the-art Garmin avionics package.

Based on these specifications and functions, we believe HondaJet offers a new dimension of performance, comfort and quality. In this sense, we can not only compare HondaJet favorably to the very light jet market, but also to the light jet market as well.

After very thorough cost analysis, we finalized the price of the standard configuration of HondaJet you see here today, at $3.65 million dollars. We feel this combination of price, performance and function places HondaJet in a very strong and unique position in the market. We will be accessible to owner-operators and corporate charter customers as well as the growing air taxi market.

Just like I challenged for airplane design, we are now committed to creating an innovative sales and service network. Today, we are announcing that HondaJet will be sold through five regional sales groups in the U.S. divided by geographic area: HondaJet East, HondaJet Southeast, HondaJet Midwest, HondaJet Southwest, and HondaJet Northwest. Together, these groups will operate as many as 14 separate dealer facilities.

We believe this will result in a more personal level of sales, service and customer support. We will be working with our retail partners to ensure that every HondaJet customer receives unprecedented levels of customer service in the purchase and ownership of HondaJet. In support of this concept, we have also established a fleet sales group to offer better customized service for fleet operators such as air-charter, air-taxi, and fractional ownership. Fleet sales will be provided through direct sales by Honda Aircraft Company.

With regard to service, we are targeting a new level of convenience and customer support. This includes the establishment of dedicated service facilities within 90 minutes flight time from any location in the U.S. While we are still early in the development of this plan, we are fully committed to creating a truly first-class ownership experience from sales, service and support to pilot training.

Finally, we took another important step on October 11 ... when Honda Aircraft Company submitted its application with the FAA for type-certification of HondaJet. As previously announced, we will produce HondaJet in the U.S. and have targeted delivery of the first jet in 2010.

I recall that it was 1986 when I attended NBAA for the first time. If my memory is correct, it was held in Anaheim, California. I was a young aerospace engineer just out of college. There is no such event as NBAA in Japan. So, I vividly remember that, when I entered into the exhibition center, I was struck by the gorgeous exhibits ... and I was struck by the stunning business jets. From that time, it has been my dream to bring a jet I designed to this magnificent show.

Twenty years later, I am very proud to present to you the results of Honda's dream to enter the aviation industry. Now, I will do my best to deliver an aircraft of outstanding performance and quality to all our customers.

Today, HondaJet sales truly take flight! Thank you very much.

Executive Remarks: Remarks by Takeo Fukui President & CEO Honda Motor Co., Ltd.

Tue, 17 Oct 2006 15:54:00 -0700

Two years ago, I came to NBAA in Las Vegas ... to announce Honda's entry into the field of aviation through the formation of GE-Honda Aero. Today, we are pleased to take another significant step ... entering a new dimension of mobility ... by starting sales of HondaJet ... a new advanced light jet of our own design.

Aviation has long been a dream for Honda. I recall as a very young engineer in 1969, I was working overtime late at night ... when I heard a strange, high pitched engine sound. Then, I saw an odd looking car moving slowly through the research lab. It was powered by a turbine engine under study by a team of Honda engineers. From the standpoint of technology ... this research project had no relation to the HondaJet we introduce today. But ... in a spiritual sense ... I guess you could say it was the first HondaJet.

The point is ... even as Honda grew from a motorcycle maker into an automaker ... and a leading producer of power equipment products ... our vision was as a mobility company, and we always kept one eye on the sky. It has been more or less 40 years of continuous challenges.

This personal passion for aviation started with the founder of Honda Motor Company ... Soichiro Honda. And it continued with every former CEO of our company. They all helped keep the dream alive. In fact, I would say their passion was much stronger than my own. For me, launching sales of HondaJet is not such an emotional decision.

A passion for aviation propelled HondaJet into the air, but a strong business case is what is taking it to the customer. And I am very confident in the success of this project. In every one of our business activities ... our goal is to create new value for the customer. And HondaJet meets this challenging objective. Simply and frankly, we would not have taken this step to commercialize HondaJet unless it created new value for aviation customers.

We began focused research in the field of aviation with two different research projects -- 20 years ago. One project studied turbine jet engines. The other focused on the aircraft. Today, powered by the HF 120 engine of GE-Honda Aero ... HondaJet represents the powerful synergy of those efforts.

Throughout our corporate history, it has been a hallmark of Honda to develop original technology for the benefit of our customers and society. I see the development of HondaJet as yet another positive demonstration that the challenging spirit of Honda still exists in our engineers today.

At the same time, while we believe in the importance of original technology, we have always involved strategic partners where it provides value for the customer. So, we are pleased to have both GE-Honda Aero and Piper Aircraft as strategic partners in this venture. Together we will form a strong team ... that creates new value in the field of aviation.

I want to thank all of you in the aviation community for accepting Honda so warmly into the field of aviation. We are excited to join this industry. And we look forward to making a valued contribution.

Finally, one month from today marks the 100 year anniversary of the birth of Mr. Honda. Today's launch of HondaJet is a great way to celebrate his spirit of challenge and innovation.

Thank you.

Executive Remarks: Remarks by Takeo Fukui, President & CEO, Honda Motor Co., Ltd.

Mon, 25 Sep 2006 10:01:19 -0700

Good afternoon, everyone. Thank you very much for taking the time to make the long trip to visit us here at the Tochigi R&D Center.

More than 35 years ago, I began my career at Honda R&D as part of a team creating a cleaner-burning engine. These efforts led to the Civic CVCC ... the first vehicle in the world to meet the 1970 U.S. Clean Air Act based solely on engine performance. I was lucky to be an engineer at Honda at such a challenging and exciting time in the history of the auto industry.

Today, in the face of so many environmental issues, I think it is again a very challenging and exciting time for our engineers at Honda. So, we invited you here today, in the hope of enhancing your understanding of our current research and development activities ... and our plans for the future.

Honda is the world's largest engine manufacturer, reaching some 21 million customers each year. Thus, we see it as our responsibility to minimize the impact of our activities on the environment, so that the convenience and pleasure of mobility can be passed onto future generations. Based on this commitment, in May 2006, we announced global CO₂ reduction goals ... both for our products and production activities.

To attain these objectives, we must continue to refine the engine and power train technologies that are fundamental to Honda's success. This continues to be a key focus of our wide-ranging research and development initiatives. Today, it is our pleasure to introduce to you several promising technologies. We will continue applying Honda innovation in developing new products that will greatly exceed the expectations of our customers.

Among the technologies we will present today is the first diesel engine to attain a level of environmental performance equal to a gasoline engine. This new clean diesel engine features a revolutionary new catalytic converter ... and a simple, compact design that makes it ideal for passenger cars. Just as the CVCC engine revolutionized the clean performance of gasoline engines ... today, we're leading the way to cleaner diesel engines.

Honda has always believed that fuel cell technology is vital, as it holds the promise of helping solve both environmental and energy challenges. We continue to make progress toward the large-scale introduction of fuel cell vehicles, which many see as the ultimate in clean mobility for the future.

Today, you will test drive a functional version of the FCX Concept vehicle first displayed at the 2005 Tokyo Motor Show. This vehicle features our new, more advanced fuel cell system. And I am delighted to announce today that in 2008 ... one year earlier than originally planned ... we will introduce a new fuel cell vehicle in Japan and the U.S. based on this concept model. In addition to its environmental performance, I think you will find that this new vehicle will be as fun to drive as any Honda. Honda is also engaged in projects focusing on the production of hydrogen fuel ... including one that uses thin film solar cells developed by Honda. With a fuel cell vehicle running on hydrogen generated with solar panels, no carbon dioxide is emitted either in producing the fuel or operating the vehicle. This is the ultimate scenario.

Also, as we announced last week, we have achieved exciting advances in biotechnology research. Our new technology helps increase yields in bio-ethanol production ... by using the stalks and leaves of plants that would normally be discarded. This improves the potential for wider application of ethanol-powered vehicles and for further CO₂ reductions. We plan to maintain this comprehensive focus on both vehicles and fuels in our ongoing research and development.

Finally, at Honda, we remain committed to advancing internal combustion engine technology. So, today, we will present some exciting new advances in the technology that powers the majority of the products we sell today ... the gasoline engine. Specifically, we will present new control technologies that further advance fuel efficiency. Overall ... you will have a number of test drive opportunities.

In research and development, Honda places the highest priority on initiative and innovation ... always setting the bar high. As we continue to develop the environmental technologies that are so critical to the world's future, our efforts will extend beyond environmental performance. We will always strive to make mobility a great joy. We will deliver on two traditional Honda promises: to lead the industry in innovation and advanced technology ... and to provide people with vehicles that are fun to drive. I hope your experience here today will give you a sense of our commitment and the promise of our future technologies. Thank you very much for your attention.

Executive Remarks: Summary of 2006 Mid-Year Speech by Takeo Fukui, President and Chief Executive Officer, Honda Motor Co., Ltd.

Wed, 17 May 2006 09:58:00 -0700

Accelerate our effort to strengthen the core characteristics that make Honda unique to accomplish further growth

Honda Motor Co., Ltd. today announced specific plans and initiatives in the following three areas, which will enable Honda to accelerate its efforts to strengthen Honda "at the spot," strengthen the core characteristics that make Honda unique, and achieve further growth.

Establishing advanced manufacturing systems and capabilities
Strengthening the foundation for overseas growth
Strengthening the commitment to reduce Honda's environmental footprint

1. Establishing Advanced Manufacturing Systems and Capabilities

By strengthening the areas of production and R&D in Japan that supports the future growth of overseas operations, Honda will establish advanced manufacturing systems and capabilities to create new value.

Strengthening Japan Production
Building a New Automobile Production Plant:

Honda plans to build a new auto plant capable of synchronous auto production - from the engine to the entire automobile -- in Yorii, Saitama to begin operation in 2010.

The annual production capacity of this new auto plant will be approximately 200,000 units. Employment at the new plant is expected to be 2,200 associates. Related investment is expected to be approximately 70 billion yen.
When the new plant becomes operational, Honda's total annual production capacity in Japan will be increased from the current 1.3 million units to 1.5 million units.
After the new Yorii plant becomes operational, Honda will renovate the Sayama plant to make it the most advanced production operation. Honda will establish a high quality and high efficiency manufacturing system by applying the latest technologies to both the Sayama and Yorii plants. These plants will be responsible for evolving such manufacturing systems horizontally to other Honda operations worldwide.

Strengthening Automatic Transmission (AT) Production:

The production capabilities at the Hamamatsu Plant will be further strengthened as the leader plant of global AT production, with manufacturing technologies to be further advanced in Hamamatsu.

Strengthening R&D Capabilities
Establishing New R&D Center:

Honda will build a new R&D center in Sakura, Tochigi. This new R&D facility will have multiple test courses, which reproduce various driving conditions including high-speed driving to urban-area driving. In this way, Honda will strengthen development of next-generation vehicles. Honda is aiming to begin operation of this new R&D facility in 2009. Related investment is expected to be approximately 17 billion yen.

2. Strengthening the Foundation for Overseas Growth

Honda will further strengthen the foundation for the growth of overseas operations by focusing on strengthening its business foundation in North America and on business expansion in growth areas such as Asia and South America.

Strengthening North American Operations
Building a New Automobile Production Plant in the US:

The new auto plant in the U.S., which is planned to become operational in 2008, will have annual production capacity of approximately 200,000 units. The related investment is expected to be approximately US$ 400 million. Employment at this new plant is expected to be more than 1500 associates. And this new plant will have the lowest environmental footprint among other Honda auto plants in North America.
We are in the final process of selecting locations, with plans to announce more details when the final decision is made.
With this new plant, annual auto production capacity in North America will be increased from the current 1.4 million units to 1.6 million units.

Building a New Auto Engine Plant in Canada:

Honda plans to build a new engine plant in Canada, neighborring the existing auto plant - Honda of Canada Mfg.(HCM) The annual production capacity will be approximately 200,000 units, and the plant should begin operation in 2008. Related investment is expected to be approximately US$140 million, with employment of 340 associates.
This new engine plant will produce four cylinder engines for supply to HCM, which are now produced at Anna Engine Plant in Ohio. The Anna Engine Plant will begin supplying engines for the new auto plant in the U.S. and will also begin producing some engine components which are currently being supplied from Japan. Through this, Honda is going to further increase its local content in North America.
The new automatic transmission plant in Georgia (with annual production capacity of more than 300,000 units) began operations this month (May 2006). With the addition of this plant, Honda will establish an integrated AT production capability and further improve production efficiency.

Expanding Business in Growth Areas
Motorcycle Business in Asia:

Hero Honda in India is planning to increase capacity of its existing line (by 450,000 units) as well as build a new plant with annual production capacity of 450,000 units. As a result, annual motorcycle production capacity in India will increase by an additional 900,000 units to a total of 5.2 million units by 2007.
Honda is planning to expand motorcycle production capacity in the Philippines and Pakistan. With these expansion plans, the annual motorcycle production capacity in Asia will reach 14 million units by 2007 - an increase of 6 million units in three years, compared to the 8 million unit capacity in 2004.

Automobile Business in Asia:

Honda has decided to undertake the plan to double automobile production capacity in India three years ahead of the original schedule. Annual automobile production capacity in India will reach 100,000 units around the end of 2007. Honda will consider further expansion to accommodate future growth in customer demand.

Automobile Business in China:

When Guangzhou Honda's second auto plant with annual production capacity of 120,000 units becomes operational this fall, total automobile production capacity in China will reach 530,000 units. Honda will consider further expansion based on future market trends.

Automobile Business in South America:

Honda is planning to double production capacity of its auto plant in Brazil to 100,000 units by 2008.

Based on these expansion plans and other initiatives, Honda envisions 2010 global unit sales of more than 4.5 million units for automobiles, 18 million units or more for motorcycles, and 7 million plus units for power products.

3. Strengthening our Commitment to Reduce Environmental Footprint

Under the direction of "commitment for the future," Honda will continue pursuing more proactive efforts to reduce its environmental footprint with the main focus on CO2 reduction.

Reduction of CO2 Emissions - Setting Voluntary Goals

Honda voluntarily sets global CO2 reduction goals for its products and production activities and is accelerating its efforts to achieve those goals.
In 2000, the global average of CO2 exhaust emissions among Honda automobiles was 179.5g/km. Despite increased sales of larger-size vehicles such as SUV and minivans, average CO2 emissions were reduced by 5% during the five year period up to 2005.
Honda now strives to achieve a further reduction of 5% or more, aiming to accomplish a total 10% reduction by 2010 compared to the level of 2000. Honda will also work toward a 10% reduction both for motorcycles and power products.
At Honda, the global average of CO2 emissions to produce one automobile also declined by approximately 5% during the five year period up to 2005. Honda is working toward a further reduction by 5% or more by 2010 to achieve a total reduction of 10% compared to the level of 2000. For motorcycle and power product production, Honda set goals to reduce CO2 emissions by 20% in each area.
Honda is the first automaker in the world to announce global CO2 reduction goals for its products and production activities.

Product strategy
New Dedicated Hybrid Vehicle:

Honda is now developing a new dedicated hybrid vehicle suitable for family use in major automobile markets in the world. With this new dedicated hybrid vehicle Honda will achieve further advancement of fuel efficient technologies and a major cost reduction, which will enable Honda to offer this vehicle in 2009 at a price level lower than the Civic Hybrid.
Production of all-new, more-affordable, dedicated hybrid vehicle, including the hybrid unit, will be produced at Suzuka Factory. The worldwide sales plan is approximately 200,000 units per year that includes projected North American sales volume 100,000 units.

New Clean Diesel:

Based on the current highly successful diesel engine currently sold in Europe, Honda is now developing a cleaner next-generation 4-cylinder diesel engine. This engine will meet the U.S. EPA's stringent Tier2 BIN5 emission standard requiring NOx emission levels equivalent to a gasoline-powered vehicle. Honda plans to introduce this super-clean diesel engine to market within the next three years.
Honda will also work toward development of a clean V6 diesel engine.
While improving the fuel efficiency of gasoline engines with Advanced VTEC, Advanced VCM, and other technologies, Honda will expand application of hybrid technology to smaller size vehicles and diesel technology to medium-to-large size vehicles. Thorough these comprehensive efforts leveraging the unique characteristics of each environmental technology, Honda will accelerate its effort to reduce CO2 emissions.

Motorcycles:

Honda plans to install fuel injection on the majority of models for sale worldwide by the end of 2010.
Moreover, Honda will introduce new engine technologies such as super-low friction engines, which will improve fuel economy by up to 13% compared to the current level, and VCM systems for motorcycles, which will improve fuel economy by up to 30% compared to the current level.

Fuel Cell Vehicle:

Honda is currently developing a new vehicle based on the technology and design of the FCX Concept, and a drivable model will be unveiled in fall of this year. Honda plans to begin sales of this new fuel cell vehicle within the next three years.

Solar Cell:

Solar cell panels developed by Honda are currently installed and utilized at 15 Honda facilities worldwide, the Suzuka Factory will be added to this list in fall of this year.
Honda will begin the production and sales of solar panels in fall of this year, within limited areas. Honda will begin mass production of the solar panel by establishing a production line with the annual capacity of 27.5 megawatts at Honda's Kumamoto Factory in 2007.

Honda will further strengthen its ability to create advanced technologies and products that represent the uniqueness of Honda with the goal to become number one in the world in creating new value and joy for our customers.

Executive Remarks: 2006 New York International Auto Show Remarks by Dick Colliver

Thu, 13 Apr 2006 09:11:50 -0700

Good morning, and thank you for joining us for the Honda press event. As you saw in our playful opening, Honda is a company that now has a full lineup of world-class, award-winning vehicles. A lineup that is continuing to get stronger every day.

The new Civic came out of the gate a winner on every level and Civic sales are up 32 percent over last year. And the all-new Fit launches next week. A Honda in the full sense of the word, it's a vehicle which is unique in it segment with great interior flexibility and high levels of standard feature content, safety and refinement. And later this year, we'll be launching an all-new CR-V, and a very hot new Civic Si sedan- all of that in addition to the new vehicle I'm going to show you in a few moments.

With the addition of the Ridgeline pickup at one end, and the subcompact Fit at the other, Honda now has the most comprehensive lineup in its history, with product offerings in nearly all segments. Add it all up, and it's clear that Honda is on the move, and we are projecting record sales for the eleventh consecutive year with total sales of 1.3 million vehicles. As we expand our product line and work to build sales, we're also continuing to remain focused on protecting the environment. Honda's commitment to the environment runs deep and is expressed in everything we do, including our alternative fuel vehicles. The Honda FCX, for example, is the most advanced hydrogen-powered vehicle on earth. And while we create the technologies on tomorrow, we're also making the most of the fuels available today- fuels like natural gas. Available in millions of homes across America, natural gas is a clean, eco-friendly alternative fuel. Until now, the only ones able to use it for vehicles were large companies with their own fleet of refueling stations. Honda is changing that. Next month, we're launching the next generation of the natural gas powered Civic GX is California. Using the Phill refueling appliance, customers can now conveniently refuel at home. With an overnight refuel, the Civic GX has arrange of approximately 250 miles- more than enough to cover most daily driving. The Phill home refueling appliance removes in the infrastructure barrier to consumer use of natural gas vehicles, and it is a breakthrough technology. As for the Civic GX, it's the cleanest running vehicle sold anywhere on earth and it's an expression of Honda's corporate commitment to creating "blue skies" for our children. Honda is the only company to offer this technology, and I am pleased to announced today that Civic GX and the home refueling appliance will be available throughout New York state starting this fall.

And while we work to protect the environment, we're also doing everything we can to ensure that Honda vehicles are as safe as possible. In 2003, we publicly launched our "Safety For Everyone" initiative. This initiative was designed to bring a core suite of standard safety features that go beyond current regulations, to every Honda model regardless of size or price. Those features include side curtain airbags, front-side airbags, anti-lock brakes and pedestrian safety design. It's a comprehensive package, and by the end of this calendar year every Honda- except for our small volume specialty models- will have these safety technologies. In addition, we have also applied the ACE body structure to nearly half of our models, and have added a series of other safety features above and beyond our original commitment.

The next great Hondas to include all of the "Safety For Everyone" features will be the 2007 Element lineup, including a new urban-oriented version of this popular SUV. One of the hallmarks of Element is its versatility, and the new Element SC Prototype is designed to expand that versatility by appealing to a whole new group of young buyers. This is the Element SC Prototype, and it has been designed to be the hip, style-conscious, performance-oriented brother of the original Element- which makes New York City the perfect place to introduce it. Complementing the outdoor lifestyle features the Element is known for, the Element SC injects a new dimension of sophistication into the lineup that can best be summarized as "city performer". With fully painted panels and trim pieces, the exterior is designed to convey a more sophisticated attitude.

Exclusive Prototype features include: custom front bumper, a custom grill, projector beam headlights, front to rear aero body kit, a lowered roof line, a new suspension riding 3" lower than the stock edition and custom 21" cast aluminum alloy wheels with high performance tires. Inside, there are a variety of exclusive features which work together to create an upscale, urban feel. These include glossy black trim pieces, a carpeted floor, copper-hue instrument panel lighting with corresponding trim accents and a new integrated seatbelt system. There's also a center console that has enclosed storage areas ideal for cell phones and MP3 players, and which creates a more cockpit-like environment.

Element SC is powered by a 2.4-liter, dual overhead cam, i-VTEC engine that produces 166 horsepower- 10 more than the '06 Element. It comes standard with a five-speed manual, and the available automatic has five forward gears instead of four. As for handling, it has been vastly improved thanks to a dynamic combination of track-worthy steering and suspension. And as I said a moment ago, it also comes standard with a full array of highly advanced, world-class safety features.

As for our buyers, we expect Element SC to appeal to young males seeking an expression of their personal style. This Element will provide that along with cargo versatility, plus a great driving experience. And we will announce technical details, pricing and sales plans closer to its debut this fall. With everything it has going for it, Element SC is going to be a hot new addition to the Honda lineup...a lineup that continues to grow stronger and better everyday as we set our sights on another year of record sales.

Thanks you all for coming this morning. I hope you enjoy the rest of the day.

Executive Remarks: 2006 New York International Auto Show Remarks by John Mendel

Wed, 12 Apr 2006 09:43:00 -0700

Good morning. Welcome to the Acura press conference, and thank you all for coming. These are exciting times for Acura, driven by a stable of great Acura products. Products like this all-new Acura RDX. While you've seen concepts and prototypes in the past, this is the actual production version of the RDX, which we'll be launching this summer. As Acura's premium entry-level SUV, it has everything it takes to go head-to-head with the competition. And that includes plenty of performance. RDX is powered by Acura's first turbocharged engine. A 2.3-liter, four-cylinder featuring revolutionary i-VTEC turbo technology that's exclusive to Acura. Thanks to its variable flow turbocharger, it not only generates high output, it also dramatically reduces turbo lag, while generating outstanding torque even at low rpm. With 240 horsepower and 260 lbs-ft of torque, RDX delivers more power than many V-6 SUVs, while at the same time providing excellent fuel economy. RDX is also equipped with Acura's Super Handling All-Wheel Drive system, to dramatically enhance handling and stability during both sporty driving and in inclement weather. Also helping to ensure maximum performance are the RDX's steering wheel-mounted paddle shifters, which provide F1-style shifting and immediate response.

Acura's commitment to cutting edge, customer-relevant technology can be found everywhere you look. For example, while the RDX is well-appointed, an available "technology package" adds a virtual world of advanced, easy-to-use features, including an 8" DVD navigation system with Real Time Traffic and rearview camera, HandsFreeLink, the ELS DVD-Audio surround system and more.

RDX also delivers plenty of comfort and convenience, with seating for five, and lots of cargo space, including a secure compartment in the large center console which provides enough space to even store a laptop computer.

Built on an all-new global light truck platform, RDX features the energy-dispersing ACE body structure, along with Acura's vehicle stability assist system to help enhance safety. And that's just a short list! We don't have enough time to go into all the details this morning, but you'll find a full RDX story in your press kits. As for the sales picture, RDX will go on sale this summer and we expect to sell approximately 40,000 in its first full year of production. Pricing will be announced when we get closer to the on-sale date.

And now, let's turn our attention to another Acura SUV that's going to be generating a lot of excitement this year: the MDX. Originally launched in 2000 as a 2001 model, the Acura MDX hit its mark right out of the gate, capturing Motor Trend Sport Utility of the Year, and North American Truck of the Year, and it has been a top seller ever since. Building on this success will be the next-generation MDX scheduled to launch in the fall. While the actual production version is still under wraps, this MD-X Concept provides a very good idea of where we're going. Aggressive and dynamic, the MD-X Concept embodies the key attributes that have made MDX a huge success while at the same time moving in a direction that will be even more appealing to affluent, performance-oriented buyers. Every aspect of the MD-X Concept design conveys performance and attitude while still retaining SUV functionality. They styling signifies a bold direction for the next generation MDX, both in appearance and substance. With its low, wide stance and chiseled lines, its creates a powerful and dynamic feeling of forward movement. Everything about the Concept vehicle says performance. The new MDX will deliver plenty of power and vehicle dynamics, which were track-tuned on the famous Nurburgring in Germany- one of the most demanding circuits in the world. The MD-X Concept provides a perfect example of Acura's customer-driven, forward-thinking approach to product design.

At Acura, we are committed to creating products which are ahead of the curve and which take full advantage of cutting edge technologies. And while we have emphasized Acura's technology, it has never been about technology itself. Instead, it's about creating more functionality through the use of customer relevant technology. Technology like HandsFreeLink which gives you Bluetooth connectivity; Real Time Traffic helping you get where you're going faster and easier; DVD-Audio for the ultimate listening experience; Super Handling All-Wheel Drive for greater control; and the Collision Mitigation Braking System for the ultimate in safety.

At Acura, we're committed to providing our buyers with a luxury experience that isn't about putting them above their friends, but putting them ahead. Ahead. That's where Acura is today, and that's the direction we will continue to move with the development of all of our future products. Products like this MD-X Concept which does an excellent job of pointing the way for the production version of the 2007 MDX- a vehicle while will be designed, engineered and built in North America and is scheduled to launch this fall.

With the launch of the both the new RDX this summer and the next-generation MDX later this year, Acura is continuing to build on our success and enhance our reputation for performance. And as you're about to see, Acura performance is on its way to a whole new level. You're looking at the hottest, fastest Acura ever built- and it's built to race. Our company has a long history in racing, which helps us push the envelope and learn from the experience. Said differently, we race to learn. As you know, we're committed to open-wheel racing in North America and that commitment is solid. This Acura is designed to complement those efforts. ALMS racing includes premiere competitors such as Aston Martin, Porsche, Audi and Ferrari. It's great company. The series provides the perfect setting to showcase Acura's advanced technology and performance, and we will be competing in the 2007 American LeMans Series.

The Acura ALMS program will feature the first racing engine completely designed and delivered in-house by our performance development team in Santa Clarita, California. The Series itself draws on the heritage of long-distance endurance sports car racing in both Europe and the United States as personified by the historic 24 Hours of LeMans. The 10-race North American series includes the 12 Hours of Sebring, plus events at nine other premier road circuits. It's exciting racing that demands the utmost of both car and driver, and we look forward to competing.

Add up everything we shared with you this morning. It's clear that Acura is on the move as we continue to strengthen and expand our product line, set new standards and seek new challenges. Before we close, I would like to introduce some special guests here with us today. The founder of ALMS, Dan Penoz; the president of the ALMS, Scott Atherton; and Robert Clarke, president of Honda Performance Development. Also with us today are the project leaders for the RDX and MDX, Gary Evert and Frank Paluch. All of them will be here to answer your questions.

I want to thank you all for coming and I want to invite you to come to the stage and take a closer look these great new vehicles.

Executive Remarks: Remarks by Dick Colliver, Executive Vice President, American Honda Motor Co., Inc

Mon, 27 Mar 2006 13:20:06 -0800

Thank you, Charles. And good morning honored guests. I want to begin by thanking all of the associates who are taking time from your busy schedules to join us here this morning for this very special celebration.

And before I go any farther, I want to recognize a special group of associates who've joined us here this morning. If I can ask these folks to wave their hands, I would like to recognize these associates who were with the Acura Division at the time of its inception twenty years ago ... and with them, our Vice President for the Acura Division, Mr. Steve Center. Let's give these folks a big hand for all their hard work in making this day possible.

Today, Acura is twenty years old...or maybe I should say twenty years young...because today's Acura is stronger, faster, more nimble and more on the cutting edge of automotive design and technology than at any time in its 20-year history.

From the very beginning, as the world's first luxury brand from a Japanese nameplate, Acura has challenged the conventional wisdom of what a luxury brand can and should be. And that same pioneering spirit that gave birth to Acura two decades ago is driving our continued advancement and innovative approach to luxury

No question, Acura is on a roll...and not just in terms of our products and technology. Today's Acura is attracting a record number of customers. And these customers are the most affluent buyers in our history ... choosing our products after cross-shopping with other high-end luxury brands. And these customers helped take Acura to our third straight year of record sales in 2005, topping the two-hundred thousand mark for the first time in the brand's history.

Of course, the market isn't all that interested in our past or even our present accomplishments. What really matters is where we will take Acura and our customers in the future. And while we gather to celebrate the 20th anniversary of the creation of Acura, today's event is really all about looking "ahead" to the next 20 years of innovation and leadership.

And "ahead" is really the key word. Staying ahead of the needs of our customers with leading edge designs, performance and technology...and staying head of the competition.

This year, we'll introduce two new products that look ahead to Acura's future. This summer we'll launch the all-new Acura RD-X that will expand the gateway into the Acura brand. Then, this fall we introduce an exciting all-new MDX. At next month's New York auto show ... our customers will get their first look at an exterior styling concept of the new model.

Importantly, both of these new products were a result of the unique market insights and styling inspiration of our designers here in our R&D's LA Center. Today, we take an important step in advancing these capabilities with the creation of the new Acura Design Center. This new, exclusively Acura Design Center, will work in conjunction with American Honda's product planning and market research functions, to set the future direction of Acura. The addition of the Acura Design Center will play an important part in the continuing evolution of Acura, further distinguishing Acura products in the market place and ensuring that we continue to deliver products ahead of the times and ahead of the competition.

In short, the key to success lies in our collective ability ... as one team ... to present new dreams to our customers. The designers who will work in this new facility ... the engineers and technicians in our Ohio Center ... the manufacturing folks in Ohio and Canada ... and the associates here in Torrance and around the country who work in marketing, sales, parts, service and finance.

Clearly, the best is yet to come. Looking to the future ... we are focused on the concept of being ahead of the market. But the future of Acura is not just about staying ahead of our competitors ... it's really about looking ahead to where our customers are headed and creating products and technologies that help them realize these new experiences. In fact, if there is one constant for Acura in the future - it is the notion of being "ahead" in every way imaginable. This is the future of Acura, and I can tell you...it's a bright one indeed.

But enough words ... the best way to honor the past ... is to look to the future. So, the moment we've all been waiting for ... the official groundbreaking for the new Acura Design Center, is here. With some help from my friends ... let's break up this ground. Thank you.

Executive Remarks: Remarks by Hirohide Ikeno, President, Honda R&D Americas., Inc.

Mon, 27 Mar 2006 13:20:04 -0800

Thank you Charles and good morning honored guests and fellow associates.

Last year marked 30 years that we have been doing R&D in the U.S. I haven't been around quite as long as Charles, but I did join HRA for the first time 25 years ago in 1981. And I do share in his deep sense of pride and honor in representing the associates of HRA here today.

During my first tenure with HRA through the mid '80s we had not yet undertaken an auto development project. That came with the introduction of the 1991 Honda Accord Wagon, the first significant step in the growth of HRA. In the '90s it was my job to travel around the world to evaluate automobile products as they were being developed. From that position, I watched as the capabilities of HRA's American engineers, researchers and stylists continued to grow. In 2000, I returned as president of HRA. At that time, our engineers in Ohio were completing the development of the all new Acura MDX. The MDX, which was researched, designed and developed by HRA in the U.S., was named the 2001 Motor Trend SUV of the Year.

Think about it...in 10 years, we had grown from a company that could develop one derivative model to an operation that was capable of "Complete Product Creation."

In today's market, the MDX has many competitors, but back then it was an all-new product - a unibody SUV. This was a completely new concept, created from the vision of HRA associates. Now, more than 65 percent of the Acura products sold in America are researched, designed and developed in America as well. And even the new RDX, being developed in Japan, is being led by one of our American engineers from Ohio.

Today, we break ground for a new building that will become the center for the design of future Acura models. And soon in Pasadena, we will open a new advanced design studio that will create future design concepts. These new facilities are part of our continued investment in Honda's U.S. R&D operations. In fact, Honda R&D will now have four major facilities in California.

But when we talk about increasing our investment in America, we are talking about more than just an investment in buildings and equipment. We are talking about our most important investment - the investment we make in our people...researchers, designers and engineers...and in their opportunity to create wonderful products based on The Power of Dreams.

Today's groundbreaking for the Acura Design Center marks an important new chapter in the growth and maturity of our local R&D capabilities. The creation of this new facility will lead to the development of distinctive and leading edge designs that will further strengthen the appeal of Acura products. And, like all new Honda facilities in North America, I am proud to say the Acura Design Center will be a sustainable green building. We expect to receive certification from the U.S. Green Building Council for this new facility.

Importantly, this investment is a tribute to the associates of Honda R&D Americas and our LA Center. It is the success of their efforts that have made this possible. Now, this new Acura Design Center will bring an even greater focus and distinction to future Acura products. This is especially important as the Acura brand enters its third decade, and a new phase in its own growth and evolution. At Honda R&D Americas we are committed to our role in advancing Acura's reputation of leadership and innovation.

So...celebrating the past but looking to the future, to all of the Honda associates who have worked over the past 20 years to advance the Acura brand I would like to say..."Happy 20th Birthday."

Together, we will make the next 20 years even better!

Thank you.

Executive Remarks: Remarks by Charles Allen, Senior Vice President, Honda R&D Americas, Inc

Mon, 27 Mar 2006 13:20:02 -0800

Good morning everyone and thank you for joining us here today.

My name is Charles Allen, Vice President of Honda R&D Americas- or HRA as we call it. And it is my pleasure and honor to represent all Honda associates as we commemorate two very important milestones in our company's history ... breaking ground for Honda's latest R&D facility in America ... the Acura Design Center. And the 20th anniversary of the creation of the Acura Brand.

Before I begin, I would like to introduce today's program participants who are seated behind me.

First, from the state of California, Mr. David Crane, Special Advisor for Jobs and Economic Growth.
My boss, Mr. Hirohide Ikeno, President of Honda R&D Americas
Dick Colliver, executive vice president of auto sales for American Honda Motor Co.

Also, in the audience, please recognize...

California State Assemblyman, the Honorable Ted Lieu
The Mayor of Torrance, the Honorable Dan Walker
John Mendel, senior vice president of auto operations for American Honda.
Mike McGrath, chairman of the Acura Dealer Advisory Board who is representing the more than 250 Acura dealers across the country.
And, finally, an individual who played a key role in helping launch the Acura brand 20 years ago, please welcome back the retired senior vice president of American Honda, Mr. Cliff Schmillen.

We have a number of other important community leaders and executives with Honda R&D and the Acura brand here with us today. There is not time this morning to individually recognize and introduce everyone- but please know that we appreciate your efforts and thank you for being with us today.

To put this day in some perspective ... when I joined Honda R&D Americas, almost 30 years ago, we consisted of just a handful of associates focused primarily on market research in an industrial park not far from here. Today, Honda R&D operates 10 major research and testing facilities in the U.S., with more than 13-hundred designers, engineers and support personnel engaged in the development of new products.

The existing LA Center, off to my left here, now handles product planning, market and technology research and styling design ... currently with three product studios for automobiles and motorcycles.

In Ohio, we conduct product development ... including key areas such as body and chassis design, fabrication and testing ... and working closely with our factories and suppliers on the development of new technologies and components.

Our automobile product development efforts are strengthened by two U.S. proving centers. We have a seven and a half mile banked oval track and other test courses located in Ohio. And we built a second proving center from scratch in the Mojave Desert here in California.

Together, these operations have provided Honda with fully-integrated design and development capabilities in America ...or what we call "Complete Product Creation". This means we develop all-new vehicles starting from market research and design styling ... to engineering design, fabrication and testing ... right through to the final product.

Today we enter a new phase in our history of U.S. product development with the establishment of an all-new design center ... focused exclusively on the Acura brand. To talk more about this new development, it is my pleasure to introduce the president of Honda R&D Americas, Mr. Hirohide Ikeno.

[Mr. Ikeno Speaks]

Thank you, Ikeno-San.

Now, it is my great privilege to introduce Mr. David Crane, special advisor for jobs and economic growth for the great state of California.

[Mr. Crane speaks]

Thank you, Mr. Crane. And now, I'd like to introduce Dick Colliver, executive vice president of American Honda.

[Mr. Colliver speaks]

Thank you, Dick. And now I'd like for all of our guests here on stage to gather in the groundbreaking area and join with the Honda associates who are gathering in that area. As Mr. Ikeno said, we have experienced tremendous growth over the past 20 years. But- let me tell you- we never get tired of these groundbreaking events. This is an exciting day for Honda R&D Americas ... and the Acura brand.

While we are getting everyone positioned, let me remind all of the Honda associates that we will have cake today at 3:00pm to celebrate Acura's 20th birthday in the cafeteria at American Honda.

As we get set for this ceremony, I want to point out that joining David Crane, Dan Walker, Mr. Ikeno, Dick Colliver, John Mendel and Steve Center for this groundbreaking are two of the founding members of the Acura team ...Dave Heath and Lisa Filippi-Alvarez. Thank you, everyone.

Now, I think you probably have noticed that Mr. Ikeno and Mr. Crane do not have shovels! Rather, they are standing behind a Honda tiller. This has become Honda's own unique way of breaking ground for new facilities.

So ... ladies and gentlemen, please take hold of your shovels and join us in breaking ground for the new Acura Design Center. Mr. Ikeno and Mr. Crane ...
start ... your ... engine!

Thank you, everyone. Have a great day. And Happy Birthday Acura!

# # #

Executive Remarks: Remarks by Takeo Fukui

Sat, 07 Jan 2006 08:58:19 -0800

Thank you and good afternoon everyone.

Honda has long enjoyed a special relationship with our customers in America. And we are a better company because of the many challenges we have faced to meet their needs. In 2004, we marked the 25th anniversary of Honda's U.S. production. Last year, we reached the 30-year milestone of Honda research & development in America. And this spring, we will celebrate the 20th anniversary of the Acura brand.

A few weeks ago, we announced a strategy to bring Acura to Japan in 2008. And Acura will be introduced in China this spring. We are taking these big steps to make Acura a global brand. The Honda and Acura brands will offer their own distinct identities. And all future Acura models ... throughout the world ... will be exclusive to the brand. To achieve this, we will strengthen the structure at Honda R&D in Japan to more clearly focus the development of products for each brand.

We are very confident about this strategy because of the strength of the Acura brand in North America. Acura was born in America as the first Japanese luxury brand. Now, Acura has record sales momentum - last year surpassing 200-thousand units in the U.S. for the first time.

Key to this growth and expansion is that Acura has separated itself from traditional luxury brands ... by offering performance luxury products that take their prestige from advanced technology ... always ahead of the times. Recent examples include Super Handling All Wheel Drive, Real-time Traffic information and a Collision Mitigation Braking System ... each already applied to the Acura RL.

Another key to distinguish the Acura brand is the keen design and packaging of our products. To further enhance this direction, a new Acura design studio will open in California in early 2007 ... close to our existing R&D headquarters. The TL and MDX demonstrate how our U.S. teams can design and develop great products. In this new studio, designers and stylists from around the world will play a lead role in designing future Acura models.

This Acura strategy means that the Honda brand must also have a strong identity. And the Honda brand has never been more clear ... with a focus on "Clean, safe and fun." Importantly, we have created products that achieve all three values.

Honda has always led the way in reducing emissions, advancing fuel economy and developing alternative fuel technologies. Our goal is to provide what Honda engineers many years ago called Blue Skies for our Children.
Since then, we have considered it as our responsibility to produce the most environmentally responsible products and technologies possible ... even as we satisfy our customers. Now ... to further advance environmental conservation, I think the entire auto industry must think of "we" - not just "me." Each company must take responsibility and action by continuing to improve every product.

Toward this end, I want to challenge the entire industry, including Honda, to further improve fuel efficiency. So, let's enter a race together. A race for the benefit of all customers and the global environment.

Last year, Honda announced our plan to improve the fuel efficiency of each product line - automobiles, motorcycles and power equipment. We already lead the industry in fuel efficiency. But by 2008, we will introduce a new 4-cylinder internal combustion engine to improve fuel efficiency by up to 13 percent from 2005 levels. And a V-6 engine with new VCM technology will improve basic V-6 efficiency by up to 11 percent over 2005. And we will not stop there.

At the same time, we continue to invest in advanced future technologies. The current Honda FCX is now in use by an individual customer in the real world. And today, we are showing the FCX Concept. This car is very close to the next generation fuel cell vehicle we will debut in 3-to-4 years. In fact, this fall ... we will begin limited driving opportunities with a prototype version of this vehicle.

But ... again ... the auto industry must think of "we" - not just "me." We cannot just develop the vehicle. We must make a commitment to address the fueling infrastructure that will enable our customers to use these cars in the real world.
Toward this end, we just introduced Home Energy Station III, the 3rd generation of Honda's challenge to provide customers with the possibility to refuel their fuel cell vehicle. It will also generate clean power and hot water for the home.

Importantly, we have shown that environmentally advanced vehicles can also meet advanced safety standards. Honda has completed the initial commitment of our Safety for Everyone approach - offering advanced safety on our vehicles regardless of size or price. For example ... side curtain airbags and ABS are standard on vehicles from the upcoming subcompact Fit to the Ridgeline truck.

You can really see the benefit of this commitment on the new Civic. With Honda's ACE body, we are addressing vehicle-to-vehicle compatibility in frontal collisions like no other automaker. And Civic recently became the first compact car to achieve the IIHS "Top Safety Pick - Gold" award.

Safety for Everyone is an ongoing commitment to our customers and society. You can see some of our future safety concepts with the ASV3 vehicles ... technologies that help sense the potential for collisions. Again, our commitment is not just "me" protection, but "we" protection ... trying to make transportation safer for all road users.

Through all of these efforts ... we are providing new value to our customers and society ... helping Honda maintain our special relationship with the American people ... and achieving our goal of being a company that society wants to exist.

Now, I would like to introduce Dick Colliver, who will introduce a new model that fits with Honda's clean, safe and fun brand values. Thank you.

Executive Remarks: Summary of 2004 Year End CEO Speech

Mon, 20 Dec 2004 13:12:12 -0800

The business environment is becoming more difficult due to several factors including the escalating price of crude oil and sudden fluctuations in currency exchange rates. In this increasingly competitive environment, Honda maintains its focus on being a company that society wants to exist. We will also focus on strengthening the core elements that make Honda unique in each area of its activities including R&D, production and sales and service.

Honda will develop a strong and robust corporate structure to buffer the company from exchange rate fluctuations and other changes in the business climate by increasing the self-sufficiency and autonomy of each regional operation and by improving quality, cost and delivery in our parts sourcing efforts.
Honda will further enhance its sales and service by focusing on its customers. Our highest priority is customer satisfaction.
Honda will strengthen its R&D efforts by looking more than 10 years into the future. Honda's goal is to continuously provide advanced products to our customers.

Initiatives for 2005

Motorcycle Business
2004 Worldwide Sales Forecast: 10.7 million units (up 23% from 2003)

Annual production in India reached 3.1 million units, while the annual production capacity in Indonesia will expand to 3 million units when a third plant becomes operational. In China, both Sundiro Honda's Tianjin plant and Wuyang-Honda's Guangzhou plant will be replaced by more advanced plants by the beginning of 2005 and spring 2006, respectively. In addition, a Shanghai branch of Honda Motor (China) Investment Co., Ltd., which functions as the regional headquarters, will begin operations in the spring of 2005. The Shanghai branch will promote further localization and work to strengthen our motorcycle business in China in conjunction with the modernized manufacturing facilities.

ATV production in North America will be consolidated at the South Carolina plant, while production of models such as the TRX450R will be transferred from Ohio to the Kumamoto plant in Japan, in order to further strengthen Japan's function as the global hub in supporting expansion of overseas operations. The Forza model manufactured in Kumamoto has been well received due to its advanced S-Matic transmission and other features, and it became the industry's best selling motorcycle in 2004 (excluding 50cc models). The end of a ban on tandem riding on highways and the introduction of a license for automatic transmission models in Japan will have a positive impact on the sales of Honda's large scooter line-up which includes the Forza, Silver Wing, PS250, Fusion, and Foresight.

2005 Worldwide Motorcycle Sales Plan: 12.5 million units (up 17% from the previous year's plan)

Automobile Business
In the fall of 2005, the Civic, with annual sales of more than 500,000 units worldwide, will undergo a full model change. Honda's automobile business has advanced in step with the Civic. The Civic is now manufactured in Japan, North America, South America, Europe and Asia. Civic is a truly global car and will be produced in all six regions of Honda's global operations when China begins Civic production in 2006. The Civic is a key model for Honda and will continue to drive Honda's automobile business forward with its next full model change.

Automobile Production:
Based on Honda's commitment to "build products close to the customer," we have proactively pursued the localization of production. In the last three years, overseas auto production increased by more than 500,000 units. In order to strengthen our corporate structure to enable us to deal flexibly with currency exchange rate fluctuations and changes in the economic environment of each country, Honda will promote local production of engines and key drivetrain components, which require a high level of precision manufacturing.

-U.S.
Honda will invest a total of US$270 million dollars in the U.S. for powertrain production.

In Georgia, Honda will establish an automatic transmission plant with an annual production capacity of 300,000 units.
In Alabama, production of crank shafts and connecting rods will be added.
In Ohio, local production of high precision transmission gears will begin - the first time for it to be done in the U.S.

-China
With the increased capacity at Guangzhou Honda's second plant, which is now under construction, the expanded capacity at Dongfeng Honda in Wuhan, and the capacity at the newly built export plant, Honda's total annual production capacity in China will be doubled from the current 270,000 units to 530,000 units by the latter half of 2006. To support these expansions, Honda Engineering China will begin operation of a new facility to produce dies and conduct tests for mass production technologies in the fall of 2005.

-Japan
By the end of 2005, casting and machining of diesel engines will be transferred from Honda Engineering to the Suzuka plant to increase mass production capability.

In each region, Honda will increase its exchange rate toughness and achieve qualitative improvements in quality, cost and the delivery competitiveness of parts by accelerating the localization of the production of powertrain components and manufacturing support functions.

Automobile - Japan:
2004 Domestic Sales Forecast: 740,000 units (up 1% from 2003)
In the spring of 2005, Honda will introduce a new model that offers new values in the small wagon segment. Teamed with the all-new Civic, Honda will strengthen its product lineup. E-dealer systems, now installed at all dealers, will fully conform to the Automobile Recycling Law at the beginning of 2005. This system enables Honda dealers to provide consistent service nationwide from the first price estimate to auto inspection and maintenance. Honda will fully utilize such IT systems to further improve its sales and service to achieve a 2005 sales goal of 770,000 units. Further, Honda is committed to put even greater focus on our customers and maximize the lifetime satisfaction of the cumulative 8.8 million Honda owners.

Automobile - North America:
2004 U.S. Sales Forecast: 1, 376,000 units (up approximately 2% from 2003)
In the spring of 2005, Honda will begin sales of the "Ridgeline" - Honda's proposal for a next generation light truck. Civic, with annual sales of approximately 300,000 units in the U.S., will undergo a full model change in 2005 as well. Combined with these new models, Honda will enhance its product lineup to meet a wide range of customer needs - from passenger cars to light trucks.

The U.S. sales plan for 2005 is set at 1.45 million units based on our plan to launch new products with excellent fuel efficiency and environmental performance and to reach full capacity on the second production line in Alabama. In addition, a new Acura SUV will be launched at our Ohio plant in 2006.

Honda will strengthen the foundation of its automobile business in North America by enhancing its product lineup and by strengthening its production operations.

Automobile - Europe:
2004 European Sales Forecast: 253,000 units (up 16% from 2003)
Total automobile production at the Swindon, UK plant is expected to exceed 190,000 units in 2004. All-time records are expected both for production and sales.

Sales of the Accord Diesel, introduced at the beginning of this year, has reached 20,000 units, which has helped increase total Accord sales in 2004 to 50,000 units, compared to 35,000 units in 2003. Looking ahead, Honda will launch the CR-V Diesel at the beginning of 2005, aiming to double sales of the vehicle. Further, the FR-V Diesel will be launched by the summer of 2005. By introducing these diesel models in segments with a high ratio of diesel sales, Honda will be better able to meet customer needs. The European sales plan for 2005 is set at 275,000 units.

The all-new Civic, which will go on sale at the beginning of 2006 in Europe, will also be equipped with a Honda diesel engine to expand the market for the vehicle. In order to meet growing demand in Europe created by our enhanced diesel product lineup, Honda will dedicate the entire CR-V production capacity of the UK plant to meeting demand in the European market. At the same time, Honda also decided to discontinue exports of the CR-V from the UK to the US by beginning local production of the CR-V at one of its plants in Ohio, starting with the next generation CR-V.

Automobile - China:
The Chinese market is currently experiencing a temporary slow down; however, the mid-to-long term growth potential of the China auto market is still favorable and the market is expected to increase in size by 10 to 15% per year. China is moving into a truly competitive era and Honda has been working to establish a strong brand presence that clearly differentiates it from the competition in the areas of sales, service, and products. As a result, we have successfully established a business where demand always exceeds supply. Honda will continue to grow its business in China by introducing an all-new Odyssey in 2005 and all-new Civic in 2006 and by further strengthening our sales channels.

Automobile - Asia Oceania:
2004 sales are expected to exceed previous year sales in most countries in the Asia Oceania region including Korea, where sales through Honda dealerships began this year. Total sales in the Asia Oceania region for 2004 will reach 275,000 units - a 36% increase from the previous year. In India, the annual production capacity will be expanded to 50,000 units from the current 30,000 units. Production capacity also will be expanded in Indonesia, from the current 40,000 units to 50,000 units, as sales of the Fit have been strong since its introduction this year. The total Asia Oceania sales plan for 2005 is 310,000 units.

Honda's total worldwide automobile sales for 2004 are expected to reach 3.16 million units (up 9% from 2003), with sales of 3.4 million units (up 8% from 2004) planned for 2005.

Power Product Business
2004 Worldwide Sales Forecast: 5.5 million units (up 10% from 2003)

-New engine series
Honda's proprietary electronic control technologies will be utilized to build a cleaner next-generation general-purpose engine with improved ease of use, high fuel efficiency, and low noise. This new engine will be introduced in 2005.

-Cogeneration system
Domestic sales of Honda's cogeneration systems showed a major increase in 2004, exceeding 9,000 units versus sales of 3,300 units in 2003. Honda's cogeneration systems now provide electricity and heated water to more than 10,000 homes. Also, our cogeneration system was awarded the 2004 Prize for Natural Gas Industry Innovation in Germany. To take advantage of growing interest in our cogeneration system overseas, Honda plans to expand sales by promoting sales in overseas markets.

-New plant for production of general-purpose engines in Kumamoto
Honda's new general-purpose engine plant, with an annual production capacity of 1.25 million units, will begin production in Kumamoto next month. Production of general-purpose engines in Japan will be consolidated in this new plant to further improve production efficiency.

The worldwide sales plan for power products is set at 6 million units (up 9% from this year).

R&D
It is important to allocate adequate resources to our long-term research in order to continuously develop unique Honda technologies. At Honda, we strive to "advance scientific technologies which are innovative and unique," and pursue development in areas including humanoid robotics, aviation, advanced materials and electronics. Advanced technologies in the areas of electronics and materials are essential to today's automobile development. Honda believes that highly sophisticated and unique technologies such as control systems, image processing, sensory recognition, and aerodynamics, which we cultivate in our ASIMO and HondaJet R&D activities, will be a source of our competitive advantage in areas such as automobile development.

-ASIMO
Honda just announced new technologies for ASIMO. Our new technologies increased response speed four times and enables ASIMO to quickly evaluate its environment and respond nimbly. We have also achieved human-like running with ASIMO, which is another step forward in our aim for ASIMO be useful in an office environment. We will continue to advance humanoid robotics and ASIMO.

-Aviation Business
Honda established a joint venture with GE this year, which is a step toward the commercialization of our turbofan engine. GE-Honda is currently in talks with several air frame manufacturers as potential customers.

-Fuel Cell
Honda positions the fuel cell as a power source for the future. In the U.S., a Honda FC Stack-equipped FCX was certified for commercial use in July, and the lease agreement of two units to the state of New York was signed in November 2004. The FCX also was certified in Japan this month, and a lease contract was concluded with the Hokkaido Government.

Looking more than 10 years into the future, Honda seeks to continue to be the industry's technology leader by developing technologies with free, independent thinking and creative ingenuity.

Environment & Safety
Honda's goal is not to simply comply with regulations, but to pass on the joy of mobility to future generations. Honda proactively develops and introduces environmental and safety technologies. With the objective of realizing safety for everyone, we consider safety for everyone on the road, including drivers, pedestrians, other vehicles and motorcycles.

-Motorcycles
Following completion of our goal to introduce four-stroke engines to all models (except specialized models), Honda has decided to equip even more environmentally-friendly programmed fuel injection (PGM-FI) to all newly launched scooters in Japan by the end of 2007, and to most motorcycles worldwide by the end of 2010.

In the area of safety, Honda will equip all new 250cc class or larger touring and sports motorcycles and large scooters with an advanced "combined brake system," incorporating a conventional brake with an anti-lock brake system by end 2007. And by 2010, all Honda motorcycles 250cc class or larger, except off-road models, will be equipped with this type of brake.

-Automobiles
In Japan, all Honda automobiles now comply with the 2005 emission regulations. Eleven models are certified as "Ultra" low emission vehicles and 16 models are certified as "Excellent" low emission vehicles. The unit percentage of "Ultra" and "Excellent" low emission vehicles totals 82% of all Honda vehicles, an industry leading penetration level. In the area of safety, the Odyssey, Elysion, and Edix have already been certified as complying with the "pedestrian head protection standard" which will be implemented in Japan as of September 2005.

In the U.S., the Accord Hybrid, equipped with a V6 hybrid engine went on sale this month. This vehicle employs our Variable Cylinder Management system which improves fuel efficiency and reduces greenhouse gas emissions. The Accord Hybrid is Honda's third hybrid vehicle following introduction of the Insight and Civic Hybrid.

As for safety, anti-lock brake systems will become standard equipment for all Honda and Acura vehicles in the U.S. and Canada by the end of 2006, while front side airbags and side curtain airbags will be standard equipment on virtually all Honda and Acura vehicles. In addition, we have begun installing side curtain airbags and roll-over sensors as standard equipment on all light truck models.

Based on ASV-2, announced in 2000, Honda began introducing safety technologies such as a lane-keeping assist control, our Collision Mitigation Brake System, and intelligent night vision in our mass production vehicles. Next year, we will reveal ASV-3, which features even more advanced safety technologies.

Honda's mission is to be the leader in safety and environmental technologies, always looking one step ahead.

Motor Sports

World Outdoor Trials Championship: In 2004, Takahisa Fujinami became the first Japanese to win the championship title. The Ministry of Education, Culture, Sports, Science and Technology of Japan honored Fujinami with the Sports Contributors Award.
MTB Down Hill: RN01 won the JCF Japan Series and NORBA Series in the US.
World Grand Prix_Honda won the 125cc and 250cc classes. In MotoGP, Honda won the Constructor's Championship, but finished second in the Rider's Championship. Honda begins the 2005 race season from the position of having to catch the leading rider. We will do our best to regain that title.
IndyCar_Honda won 14 of 16 races and the "triple crown" of driver, manufacturer, and rookie driver championships.
F1: Honda made great progress to finish in 2nd place for the Contructors title, compared to 5th place the previous year. Honda will make a 45% capital investment in B.A.R. With this new relationship, Honda will challenge for the World Championship.

Just as our racing activities are filled with behind the scene challenges and various successes and failures before we reach the spotlight on top of the podium, our operations in each region will be tested in today's challenging environment and this will necessitate total commitment all the way down to the production of parts and to the strengthening of our global operations.

To this end, Honda is pursuing initiatives to revisit our origins as a company, to strengthen the core points that make Honda unique in each area, and to strengthen our initiative, technology and quality to become the number one company in providing "joy to our customers."

What we mean by "strengthening the core points that make Honda unique" is that each individual associate advances and solves issues and problems based on the viewpoint that only those at the spot can possess, and that each associate proactively moves forward on their own initiative. In this way, Honda will represent the combined power of all ndividual associates who work to make their own dreams come true.

Executive Remarks: Remarks for Ed Cohen

Tue, 07 Dec 2004 11:15:52 -0800

Remarks for Ed Cohen
Union of Concerned Scientists Award
December 7, 2004
National Press Club

Thank you, Kathleen and David. And good morning ladies and gentlemen. We are pleased to receive this award today from the Union of Concerned Scientists ... which recognizes Honda's leadership in the area of environmental performance.

I want to begin by thanking everyone at UCS for their commitment. We don't agree on every issue. But we do share a commitment concerning the importance of the environment ... we agree that the performance of motor vehicles must improve ... and we both believe in bringing a "can do" spirit to this challenge.

Importantly, I also want to thank UCS for the way it has conducted this study ... which fairly measures the impact of motor vehicles on the environment based on the breadth and depth of what we do -- analyzing fleet average air quality and greenhouse gas emissions. It is based on real world efforts, not commitments. And using government test data ensures the integrity of the results.

It is significant that in this year's analysis our margin of leadership is actually greater than in the last UCS report. This is not due to inaction by our competitors - some of them have made great improvements. Rather, this achievement is born out of our commitment to conduct original research and our determination to apply the new technologies that result.

This is actually the third time Honda has earned the top award from UCS. But it's the first time we have been here to receive it. And there is a reason for that. We don't advance environmental technology to win awards ... nor do we do it simply to meet regulations. A true passion for environmental challenges is something that is woven into the fabric of our company. As a result, fuel efficiency and low emissions ... are starting points for our products ... not add-on considerations.

Our mission is to make products that satisfy our customers. And we believe we can make products that advance environmental needs ... and offer high levels of safety ... yet are fun-to-drive ... and meet our customers' needs for performance and utility. And we have consistently demonstrated this to be an achievable goal.

An important aspect of the UCS analysis ... is how it refutes the argument that Honda vehicles are more efficient simply because they are smaller. Honda vehicles are consistently at or near the top of each vehicle class. Our record of environmental performance is not reserved for a single technology or vehicle. We offer the widest possible application of environmental technologies ... across all product segments ... at all price points ... and at all performance levels.

We believe the "environmental challenge" requires three different, yet concurrent strategies. This means focusing on emissions reduction and improving energy efficiency with conventional engine technology ... while developing alternative fuel technologies to achieve energy sustainability.

The award we receive today is based on the 2003 model year ... when more than 50% of our vehicles met Tier 2 bin 5 emission standards - a full two years ahead of the Federal phase-in. But we have continued to introduce this technology ... and for our '04 model year lineup, more than 60% of our vehicles met Tier 2 bin 5. And this is versus EPA's requirement of 25%.

I recall in 1997, we introduced the very first gasoline Ultra Low Emission Vehicle in America. Significantly, it was on a family car, the Accord. At that time, many of the auto enthusiast media had concerns that low emission regulations might have a negative impact on high performance vehicles. But from that first ULEV Accord, they discovered emissions requirements don't compromise performance if the technologies are integrated into the design of the vehicle. This was an important step in gaining customer acceptance.

Regarding fuel efficiency ... Honda has developed and widely applied technologies that experts now recommend be adopted by other companies. I refer to things like Honda's VTEC variable valve timing technology ... the fact that virtually every Honda engine has 4 valves per cylinder ... that the majority of our automatic transmissions use 5 speeds, instead of four.
And ... this year ... we have taken another step with our first application of cylinder deactivation technology. These engines operate on all 6 Cylinders when accelerating. But when cruising on the highway, they automatically cut 3 cylinders to achieve higher fuel economy.

Of course, our efforts to advance fuel economy include our introduction of America's first gas-electric hybrid car. And, this week, we will become the first company to offer three different hybrid vehicles ... with the introduction of the Accord Hybrid ... the industry's first V-6 hybrid.

But we believe there is still significant potential to improve the fuel efficiency of gas powered vehicles. Toward that end, Honda recently established a new engine research facility in Japan - dedicated to advancing the fuel efficiency of the internal combustion engine even more in the future.

Finally ... we are developing technologies that have the best potential as alternatives to petroleum. Our natural gas Civic has achieved near zero emission vehicle status. And Honda remains the only automaker to gain EPA and CARB certification for a fuel cell vehicle. We now have 14 fuel cell vehicles in use in California and New York - now with the ability to start in sub-zero weather.

But the auto industry and governments of the world face many challenges over many years before customers can walk into a dealership and buy a car like the Honda FCX. One of the biggest challenges is the creation of a hydrogen fueling infrastructure. And I am really proud to say Honda is also a leader in this effort.
We opened a unique solar powered hydrogen fuel station at Honda R&D in southern California. And ... now ... with our partner, Plug Power, the development of a new, compact, Home Energy Station represents another significant advance.

At Honda, we are committed to these advanced, alternative power technologies ... even as we continue the development of more efficient internal combustion vehicles, including hybrid power.

As we work toward these different technologies ... all pointing in the same direction ... we are pleased to be recognized for these efforts by the Union of Concerned Scientists. And, again, we thank them for this honor. Thank you.

Executive Remarks: Investing in America ... 25 Years of New Challenges Remarks for Takeo Fukui

Tue, 07 Sep 2004 15:58:39 -0700

Detroit Economic Club

Good afternoon ladies and gentlemen. It is an honor for me to represent Honda in the city of Detroit. Of course, I have visited Detroit many times ... working at our emissions lab in Ann Arbor ... or meeting with our suppliers. But my last visit to Cobo Hall was for the Auto Show. So, it is a real pleasure to be here on a warm day in September, rather than in January.

I am on my way to an event in Ohio to celebrate the 25 th anniversary of the first Honda product made in America. Coming here, I began to think about what led Honda to establish production operations in the United States ... and why Honda continues to remain confident about the U.S. as a place to build products ... to invest ... and to innovate.

Of course, this is the biggest market in the world ... and America has always been open to new competition. But, more importantly, the United States has always been a place where Honda has learned new things that have made us a better company ... and a better corporate citizen. America is a relatively young nation. But your frontier spirit has led to many innovations for mankind ... including the invention of mass production ... and creating the auto industry. It is a great place to learn!

Honda began learning from America more than 50 years ago. We were just one of several hundred small motorcycle companies in Japan. And Honda management wanted to rise above this crowd through better technology. They decided to import the world's best machine tooling for our use in Japan. In November 1952, our founder, Soichiro Honda visited the U.S. for the first time. Most of the places he visited were in the American Midwest, including here in Detroit. A main purpose of his visit was to buy production equipment for our plant in Japan. 30 years later ... this story came full circle. Because in 1982 ... we started assembling passenger cars in Ohio. This was in the heart of the area where many of those original machines were born.

But this American equipment enabled us to create high precision engines. And the improving engine technology gained from American machinery, gave Honda the ability to take its next step into the world. In 1954, Mr. Honda challenged his young company to look outside Japan. He said Honda would enter and win what was then the world's most important motorcycle race -- the Tourist Trophy race on the Isle of Man in the U.K. We had no formal racing experience. And people were shocked that we would take such a bold step.

But Mr. Honda viewed the challenge of racing and global competition as the perfect tool to energize the company. It took seven years. But, in 1961, Honda achieved the goal - not only winning this international race, but .... in the process. ... the entire company adopted a global viewpoint.

Just as Honda began participating in international racing ... our founders made the decision to begin sales outside Japan as well. They chose America as the location for Honda's first overseas subsidiary. They thought that if Honda could succeed in the U.S., we could succeed anywhere in the world.

We began with our motorcycle business. And Honda bikes actually helped establish a new market in America by creating a positive image for the motorcycle. Then we looked to the automobile industry. But just as we entered this business we encountered a new challenge - the U.S. Clean Air Act. Again, we learned from America ... this time about the biggest ongoing challenge the industry has faced ... air quality issues caused by vehicle emissions.

This was actually when I joined Honda in 1969. I remember many in the industry said the Clean Air Act requirements were impossible. Or that more time was needed to develop new technology. Honda simply saw this as a challenge where each carmaker started from scratch. I joined a new team of engineers. Our challenge was to find a technical breakthrough to improve the quality of the air we breathe ... while still meeting the needs of the customer. We even quit Formula One auto racing to focus more resources on this challenge.

Our racing experience helped our development of lean burn engine technology ... producing fewer emissions based solely on the combustion process. And in October 1972, we introduced the new engine in the Civic ... making Honda the first company to meet the Clean Air Act - and without a catalytic converter.

We learned a tremendous lesson from this experience ... about staying ahead of environmental issues. And we have continued to apply these lessons since that time. Honda has consistently introduced low emission vehicles ahead of requirements. We have advanced fuel economy ... including hybrid cars. And we were the first company to gain EPA certification of a fuel cell vehicle. We have even applied environmental technology in other countries, where it is not required. This commitment is based on that first lesson of the U.S. Clean Air Act.

Importantly, the success of the Civic with the cleaner burning engine technology helped to launch Honda as a successful automaker in America. And this success enabled us to pursue a new dream. Honda has long followed a philosophy of building products close to the customer. In this way, we can better serve our local customers. We contribute to the local economy. And we grow together with the local community.

It was 25 years ago this week, that Honda began building products in America ... when a small motorcycle called the Elsinore came off the assembly line at our Motorcycle Plant in Marysville, Ohio. That day - September 10, 1979 - a fax message was sent to Japan to announce the successful start-up. A reply came back immediately. It said "Congratulations. Please proceed with auto production." And three years later in 1982, we became the first Japanese automaker to start vehicle production in America.

We brought our own unique approach to working with people ... and to manufacturing ... focused on teamwork with our associates and suppliers. We are pleased to be here today ... having succeeded in manufacturing high quality products in this competitive market. 25 years ago, some experts didn't have confidence in Honda's decision to build products in the U.S. But I would say the opposite has been true. The contributions of our associates, our suppliers and our local communities ... have given us the confidence to reinvest in America over the past 25 years.

Honda has now invested more than $8 billion dollars in 12 plants and other operations in North America. And almost 8 out of 10 vehicles we sell here are made in these plants. But I would say that the key investment is not in facilities and equipment. Rather, what is important is our investment in the skills and ideas of the people working for Honda in North America.

At Honda, we believe it is important to have a corporate culture where people have the freedom to dream ... and then commit themselves to realize those dreams. This is the Honda Way. Here in North America, our associates have really embraced this spirit.

I recall when I was president of Honda of America in Ohio in the mid-90s. Up to that time, when we introduced a new model, we launched it at a "mother plant" in Japan ... slightly ahead of the U.S. ... then applied this experience here. However, for the '98 Accord, our team wanted to conduct a new model launch for the first time ... without such a lead mother plant.

Initially, I opposed their idea. After all, the Accord is Honda's most important model in the U.S. - and the previous system had been very successful. But our associates felt strongly that they could accomplish their goal. They believed it would further advance Honda's capabilities in North America. So, they challenged those of us in management. They explained how they would accomplish this model change ... by working closely with R&D engineers and American suppliers very early in the development process.

Frankly, I recognized this as a sign that we were succeeding in America. Our associates were reaching a new level of maturity. And they were challenging us to do something new. It also made a good business case for the future of Honda's North American operations. The `98 Accord was the first U.S. built Accord with a unique design for the U.S. market. As Honda was growing in this market, we could see that in the future ... an increasing number of models would be designed exclusively for North America ... including light truck models. And the launch of this '98 Accord in Ohio was a big success.

Since that time, we have launched five all-new light truck models exclusively in North America. Last month, we launched an all-new Odyssey minivan at our plant in Alabama that is only three years old.

Now, the majority of Honda's light truck lineup is not only made here. The Honda Pilot and Element and the Acura MDX have also been designed and developed by American engineers in our U.S. R&D centers. And a new Honda Sport Utility Truck is currently in development here in the U.S. The growth of Honda's R&D centers in America has had a profound impact on the scope of our local parts sourcing activities. We have good, long standing relationships with a number of U.S. suppliers. And for models developed in North America ... we look primarily to our suppliers in North America to compete for that business.

Honda now has more than 600 supplier partners in North America ... representing annual purchases of more than $12 billion dollars in parts and materials. Over the past two decades, we developed our own unique approach to working with suppliers. We have been very consistent about our requirements for quality, cost and delivery.

But in our view, we aren't just buying parts. We want collaborative relationships ... with shared responsibilities. Our experience has shown that these partnerships provide tremendous benefit ... where Honda and suppliers can learn from each other. Sharing insights so that both Honda and the supplier benefit - builds trust ... respect ... and a spirit of cooperation for the future.

As we expanded the number of models developed and produced here in North America ... we also needed more local tooling support. Yet, we recognized that North American companies in this area were facing challenges to remain competitive with global markets. So, four years ago, our purchasing group in Ohio established several collaborative relationships with four Midwest tool makers ... two are located in Grand Rapids, Michigan ... one in Ohio ... and one in Windsor, Canada.

Our U.S. associates have helped introduce these tool makers to advanced technology and lean management systems. This has led to joint development of new hybrid tooling technology. These are dies and molds that combine the best of both worlds ... the lower cost tooling die methods found in Japan ... with more flexible die methods used in North America.

As a result, these companies have achieved global competitiveness close to that found in low cost labor markets. And they are using this to provide value to their other customers. This is increasing the competitiveness of the North American tooling industry. And ... once again ... gives us confidence in American manufacturing.

Through the development of local operations including sales, manufacturing and R&D, we now have achieved a high level of autonomy in North America. This was also clearly demonstrated in the successful startup of production at the new plant in Alabama. Associates who first learned the Honda Way in Ohio and Canada - have moved to Alabama. They are not only teaching how to build products. They are sharing Honda's corporate culture with a new generation of associates. Associates from Ohio also have traveled to Honda plants in England and Mexico, sharing their experience to help improve quality and efficiency.

Thus, what we started here 25 years ago, has even helped shape Honda's global strategy. Today, we have six regional operations around the world - each with production, R&D and sales functions. The autonomy we have achieved in North America is serving as a model for this global organization. Now, we are taking this strategy to a new level ... by networking the resources of each region together. We call this "Made by Global Honda" because we can view our worldwide manufacturing operations as one supply source. Then we make the most efficient use of our global resources to quickly meet the needs of local customers.

But the auto industry has become very competitive. Each automaker now must be able to change quickly to meet the needs of the market. Over the past several years, our associates in Ohio have conducted major innovation projects at our plants to achieve this. Rather than just looking back at the first 25 years, they focused on achieving new levels of quality, flexibility and efficiency for the future. As a result, 25 years after starting production in America, I would say we still do not have any old plants.

In fact, today, in Ohio, Honda of America Manufacturing is announcing a new commitment that takes advantage of this flexibility. Since we began auto production in 1982, our Ohio plants have focused primarily on production of passenger cars such as Accord, Civic and the Acura TL. But I am proud to announce that we will add production of an all-new SUV in Ohio. We already build the Element light truck there. Now, we will add an all-new Acura SUV. Along with the model mix produced at Honda's other plants in North America, this will position us for the future ... providing added flexibility to meet the needs of our customers for both cars and light trucks.

This new Acura SUV also will provide even greater opportunities for Honda and suppliers to work together on the development of a new product.

There are many ways to look at Honda's 25 years of manufacturing in the U.S. We have learned so much ... and gained so much ... from our experience in America. And we have shared our own unique approach to working with people ... and to manufacturing ... focused on teamwork with our associates and suppliers. Today, quality, flexibility and teamwork are now common strategies for everyone.

As an industry, there are many challenges ahead ... ever-increasing demands for safety and environmental technologies ... new information technologies... and global competition. But I believe that the U.S. manufacturing industry has a strong, fundamental competitiveness. We should all be confident in that.

In 1978, Mr. Honda was asked why Honda chose Ohio as the site for our first U.S. factory. He answered simply: "God guided us." I cannot say whether we really had divine guidance. But I will say that it was good advice.

Honda chose to build products here because we were confident we could build quality products for our customers. Now ... our continued confidence in America is based on what we have learned here ... what we have developed here ... and on the ideas and innovations that have resulted. So, 25 years later, we continue to invest ... to innovate ... and to learn in America.

Thank you for your attention. Good afternoon.

Executive Remarks: Address by Takeo Fukui, President and CEO, Honda Motor Co., Ltd. - 2004 Honda Meeting

Tue, 24 Aug 2004 15:33:18 -0700

Corporate Communications Division, Honda Motor Co., Ltd.

Our new Mid-Term Plan begins next fiscal year (April 1, 2005). Last month, I revealed our directions for this new Mid-term. We will further strengthen Honda's uniqueness by enhancing initiative, technology and quality focusing on our "Three Realities Principle" of going to the real spot, focusing on the real situation and basing our decisions on reality in each of four areas: research and development, production, sales, and the "leader role" of Honda's Japan operations.

Our goal is always to provide genuine satisfaction to customers worldwide. To do this, more than anything else, we need to be creative in our product development. For this reason, research and development is the most important focus for Honda. Today, I'd like to talk about three elements of our research and development effort to which we're dedicating increased attention and energy.

The first element is fun: the enjoyment of driving a car, riding a motorcycle, or using any of our products. We will further strengthen the area of "fun" as one of the unique characteristics that sets Honda apart.

The second element is safety and environmental technologies. These are the key areas for sustainable mobility. In order to keep creating the fun of mobility for future generations, we will set a high target and proactively take on challenges ahead of what is required.

The third element is strengthening R&D capabilities to create core elements of our uniqueness. For that, we have upgraded our research facilities to enhance the precision of reproducing real-life situations.

Now let me update you on our work in these three important directions.

First, I want to talk about fun. Honda is proactive in developing advanced control systems based on intelligent technologies that make driving more enjoyable. Honda will continue to introduce intelligent technologies and advanced control systems to create new values that provide our customers smart fun.

In addition, we are displaying here today some of our products and technologies in the areas of motorcycles and power products, that provide the fun of riding and using that enrich the lives of Honda customers. I hope you enjoy this opportunity to experience them.

Second, in the area of environmental technology, Honda is committed to the development of fuel cell systems and believes that this clean technology may play a key role as an alternative to the internal combustion engine. And we have been continuing our work to develop and implement fuel cell technology for automobiles, motorcycles, and power products. In fact, we have already developed a 125cc size scooter with the compact Honda FC Stack system.

As part of the effort to realize distributed electricity generation, Honda has developed and is today displaying a new compact fuel cell generator for home use. Pursuing the dream of a hydrogen-based society of the future, we're continuing a broad-based research and development effort.

Honda is also focused on safety. Honda's goal is to promote "safety for everyone", by applying technologies for the protection of automobile occupants, motorcycle and bicycle riders, and pedestrians.

For instance, one of our research objective is to build vehicles that help people avoid accidents by anticipating danger. And we are researching the technology to improve motorcycle collision safety as well.

As the world's leading motorcycle manufacturer, Honda is particularly passionate about motorcycle safety. At our Asaka R&D Center we've created a new organization dedicated to motorcycle safety research.

Prominent among our achievements in safety technology so far, the combination of Honda's Hydraulic Combined Brake System with the Anti-Lock Braking System is one of the technologies to improved motorcycle safety. Let me give you a few more details of our plans for the implementation of these important technologies.

By the end of 2007, the Hydraulic Combined Braking System with ABS will be introduced worldwide on all new models in the large scooter, touring bike and 250cc-or-larger sports bike categories. And by the end of year 2010, we plan to make this system available for all 250cc-or-larger motorcycles, except those designed exclusively for off-road use. For bikes designed for both on- and off-road riding, an ABS system will be available. .

The implementation of the Hydraulic Combined Braking System with ABS provides consistent braking under a wide range of weather and roadway conditions. As a result we believe it will help make the fun of riding a motorcycle accessible to a broader range of people.

A new automobile safety technology, the Intelligent Night Vision System, will be implemented in the new Legend this fall in Japan. In addition to conventional night vision technology, the new system uses dual cameras to detect pedestrians in or approaching the vehicle's path and provides the driver visual and audio cautions--a world's first.

Third, we have added new test courses at our Proving Grounds in Tochigi Prefecture and in Takasu, on the northern island of Hokkaido. Using these facilities, we will further advance the vehicle maneuverability under more severe driving conditions and research for the advanced vehicle control systems.

To summarize, in the area of research and development, Honda is developing new motorcycles, automobiles and power products that exceed customer expectations, adding value and providing new forms of smart fun. To this end, we are pursuing new safety and environmental solutions, and strengthening the fundamentals, further upgrading our R&D facilities and operations. We see many challenges ahead, and unlimited possibilities.

As many of you know, I became president of Honda last year, and this is my first Honda Meeting, where we present new products and technologies and talking with interested experts. I have been looking forward to having such an opportunity. Today I sincerely hope that you will not hesitate to share with me and my colleagues your most valuable opinions.

I am very grateful for your time and attention. Thank you.

Executive Remarks: Remarks for Larry Jutte, Traverse City Conference (Part 1 of 2)

Fri, 06 Aug 2004 16:43:00 -0700

We are invited to participate in a number of forums that focus on purchasing issues. And we come to these meetings with the same spirit that we bring to our relationships with suppliers. We are here to share what we know ... and listen and learn from the knowledge base and experiences of others.

As an industry ... and as individual companies ... we face many challenges. But let me begin by suggesting that we keep these challenges in perspective. Viewed historically, even with a slight dip in overall industry sales, we are still in an era of record high auto sales. Sales have never been this high, for this long. Certainly, Honda has enjoyed record sales for seven consecutive years.

Having said that, I want to emphasize that Honda has always prepared as if there is a "perfect storm" brewing out there. That means focusing on the customer ... and always remaining lean ... always flexible ... and always a little conservative in terms of the risks we choose to take. We won't change this approach.

But that doesn't mean we will stand still. In just over one month, Honda of America Manufacturing will mark the 25th anniversary of the first Honda product to roll off one of our assembly lines in Ohio. And we are planning a nice celebration. But from a business standpoint ... rather than look back ... we are focusing on the next 25 years. Today, I want to explain how we plan to advance by creating new value for the customer. And based on some of the lessons we have learned over the years, I want to offer some views on what suppliers and OEMs should be looking to achieve to maintain strong relationships.

I don't use the word - relationship - lightly. I think it precisely defines what is required to have a mutually satisfying and successful experience. Whether you are talking about two people or two companies, entering into a relationship is one of the biggest decisions you can make. You must take time to get to know one another and make sure you share the same values. It requires open and honest communication. And it can't be one-sided ... there must be real commitment from both sides. Well ... I'm not Dr. Phil ... but I hope you get the point.

Honda's 25 years of manufacturing leadership in North America now includes 12 plants. But, in 1979 ... we didn't have much in the way of existing relationships with domestic suppliers. Starting production from scratch in America also meant beginning our domestic parts sourcing efforts from virtually nothing.

I say nothing ... and that is true with respect to parts and materials. But we did begin with something more important in my view. We started with a very clear and strong corporate philosophy. A set of principles of what matters to Honda ... principles that guided the process of establishing production operations here ... and that represent the values we bring to every supplier relationship we enter.

This begins with a focus on the customer. The genesis of Honda's 25th anniversary was our belief in "building products close to the customer." But the operative word is not "building" - rather, it is "customer." Everyone talks about the customer. But our basic belief at Honda is that we cannot be satisfied until our customer is satisfied through the life of their experience with our product.

When it comes to how we operate as a company - at the core is something we call "Respect for the individual." Working together in an environment where challenging issues must be resolved every day requires open and honest communication. Respect for the individual is what makes this possible. It is the foundation for teamwork at Honda.

We also believe in the importance of going "to the spot" ... this means getting out of the office ... and going to the assembly line or a supplier's facility to determine the root cause of a problem, before coming up with a solution. No matter what your title, knowledge at the spot is what empowers you to make a decision.

Another important value of Honda is that we are never satisfied with the way things are ... we always challenge ourselves to create new value for the customer. The decision to build products in America is a good example of this "challenging spirit." New challenges that focus and motivate everyone in the company - help Honda create new things for the customer.

Look ... I don't want to preach. But my point in reviewing these elements of Honda's corporate culture is to emphasize that if you are going to have a relationship with someone, you must understand the values that guide their business. And you should understand your own values. Then, consider where matches exist with your partner ... or where gaps exist that need attention.

This is exactly how Honda approached the startup of local manufacturing 25 years ago. We began by trying to identify suppliers in North America that matched our core values. In the early '80s, we were a newcomer ... with new ideas ... facing a very mature automotive supply base. Some thought Honda's value system was more than challenging ... they thought it was unreasonable. There is no question that we were demanding about quality, cost and delivery ... and we wanted to know a heckuva lot more about a supplier's business than most other auto companies at that time.

In our view, we weren't just buying parts. We wanted collaborative relationships ... with a sharing of responsibilities ... and transparency in terms of exchanging information. From the beginning, we have been insistent about our basic objectives of Q-C-D - or quality, cost and on-time delivery. Over the past two decades, this has evolved to include requirements that suppliers play an even more important role in developing parts through early involvement -- and that they effectively manage every aspect of their business.

But we have a clear vision that guides our purchasing efforts ... to develop and manage a competitive and stable supply base for Honda's manufacturing facilities throughout North America. In the early '80s, after starting up in Ohio, our production volume was low ... and our main focus was on finding suppliers that could make the same parts that were being sourced in Japan ... primarily raw materials and larger parts that were more expensive and challenging to ship.

As local auto production accelerated, we were primarily focused on two models ... Accord and Civic. Full model changes for these two models provided new suppliers with opportunities ... and also new challenges. But when suppliers experienced difficulty in meeting our standards, we didn't end our relationship with them. We wanted to help them succeed ... and to see that our relationship succeeds. So, Honda experts went to suppliers for weeks at a time - to help find weaknesses and improve their production characteristics.

Today, our associates still support suppliers. But, now they are looking at company characteristics, in addition to production characteristics ... assessing weaknesses that might be reflected in a supplier's performance ... and supporting countermeasure activities. Few suppliers will let you do this if they think you are just coming in to beat them up over price or quality. But sharing insights so that both Honda and the supplier benefit - builds trust ... respect ... and a spirit of cooperation for the future.

Perhaps the most profound impact on the scope of our local parts sourcing activities, however, has been the growth of Honda's local R&D activities in America. In fact, today, a large part of our North American Purchasing operation is physically located in the same building as Honda R&D Americas Ohio Center - which reflects both the close, collaborative relationship we have with our R&D operations and the importance of suppliers to our product development efforts.

New model development in Ohio began to have an impact in the early '90s with derivative models like the Accord Wagon and Civic Coupe ... and shifted into high gear with the development of exclusive models like the Acura MDX and TL and Honda Pilot and Element. This has meant an increased requirement for extensive qualification and development of suppliers for all processes and components. This includes a growing number of strategic alliances with suppliers on new technology.

Now, we have entered an era of increased autonomy in North American Purchasing. We have established a base of suppliers that compete for Honda business largely against each other - rather than with suppliers in Japan. Certainly, with global models like Civic - which is produced in more than a dozen nations - we place a higher priority on global sourcing. But for models developed in North America - including the upcoming Honda SUT - we look primarily to our suppliers in North America to compete for that business.

Last year, Honda purchased approximately $13 billion in parts and materials from more than 600 suppliers in North America. But while new model launches and expansion of North American capacity to 1.4 million units continues to increase the dollars we spend - note that our base of suppliers is not growing at the same rate. In fact, it has stabilized. That doesn't mean that a supplier who is not currently selling parts to Honda has missed the opportunity. But it does mean that they must come to us with a unique value proposition.

Atlantic Tool & Die, based in Strongsville, Ohio, is a good example of a supplier that has consistently responded to challenges incumbent with our business. Their start with Honda was rather typical in that we began discussions in 1986 - and they started supplying us with small stampings two years later. Nothing about Atlantic stood out from other stamping companies in terms of their technological capabilities. But we recognized something in the spirit of this company. Their management philosophy matched ours'.

When our relationship began, I know they were surprised with how much time Honda management and staff spent in their facility. But Atlantic's management has been equal to the task ... always involved ... going to the spot on the shop floor ... and knowledgeable about their operations.

Atlantic has consistently added value to our business. Prior to working with Honda, their business was limited to stampings. Recognizing the priority we place on added value, they saw an opportunity in our rapid expansion in the late '80s. After just one full year with Honda ... and with no promises of additional business ... they invested in a major expansion of their original plant to handle weldments and assembly work. It was a big step for a small company. But it tripled their employment in just four years and led to a second plant in Ohio.

Two years ago, we challenged our supplier network to become more globally competitive. That doesn't mean everyone needs to look to Asia as a supply source. But it is difficult for small stamped parts to achieve global competitiveness in North America. Atlantic has made an ongoing commitment in this area. In fact, through our International Parts Center in Ohio, Atlantic parts are exported to Honda plants overseas. They now export more parts than were originally supplied to us. And this helped turn a company we came to know as a small Ohio tool shop ... into a global player.

Atlantic also took initiative to bring value to Honda in new model activity. Last fall, they began operations at a brand new facility in Alabama serving our plant in Lincoln. And they are currently in the process of launching some 25 new part numbers for the all-new Odyssey that goes into mass production next week. Earlier I explained how we support our suppliers by troubleshooting inside their facilities. This includes during the new model process ... where we conduct New Model Reviews that analyze a supplier's readiness for mass production.

For instance, despite our solid relationship with Atlantic, Honda associates have been in their Alabama plant, observing trial runs with mass production tooling. Together, we have determined countermeasures for areas of concern. Importantly, this process is addressing issues that otherwise could have occurred during mass production. This is another example of how going to the spot and working together are ongoing activities of a healthy relationship.

But the key is that Atlantic has done the basic things very well. Like many first-time suppliers, initially they were challenged by our quality expectations. But it only seemed to motivate them. In just their second year with Honda, they earned a quality award. And they have earned enough of them now that I am almost tired of visiting their plant for awards presentations.

And they continue to look at new ways to add value. Five years ago, they began investing in proprietary in-die sensor technology that reduced stamping errors by 90 percent in just the first year. This is another sign that they are poised to jump on new opportunities by keeping up with our expectations and goals.

And Honda's expectations keep going higher. We are committed to creating new value for our customers. This has profound implications both for our products and the operations that produce them. From a manufacturing perspective, we have set our sights on the next 25 years in North America. And this means even higher levels of quality, efficiency and flexibility.

(Continued in part 2)

Executive Remarks: Remarks for Larry Jutte, Traverse City Conference (Part 2 of 2)

Fri, 06 Aug 2004 16:42:30 -0700

For Honda, it is never enough to have quality as good as others. A case in point came with the release of the most recent IQS numbers. Honda was the number one non-luxury brand. But I can tell you there was not a single headline in America making that announcement. The story everyone wanted to write about were improvements by Hyundai or domestic brands like Cadillac. Don't get me wrong, I am not complaining about the news coverage. It just demonstrates clearly that media - like our customers - have higher expectations for Honda when it comes to quality. And we plan to exceed those expectations.

For the past five years, we have been introducing Honda's flexible New Manufacturing System on a global basis, including all of Honda's North American auto plants. This new system reduces tooling costs associated with new model launches. It increases launch speed and initial quality. And makes it quicker and less costly to add models to our plants. Already, we have achieved a great deal of flexibility for car and light truck production at our North American plants..

In May of this year, we began building a new paint facility at the Marysville Auto Plant. This major expansion will introduce waterborne paint systems that are already found at newer Honda facilities. And will go into full operation in mid-2006. Along with other new paint systems developed by Honda, this is expected to reduce emissions by 41 percent and improve energy efficiency by 34 percent. These investments show how continuing to invest in manufacturing quality, efficiency and flexibility enables us to create new value for our customers.

I began today by talking about the importance of values to Honda. But I think a relevant question for all companies is "What are your core values? What makes your company unique or special? And does your self-image match reality?" If not -- to realize improvement -- you shouldn't focus just on trailing indicator metrics. Focus on the characteristics that will lead to success in the future.

A supplier might get our attention with a very competitive price ... but they won't necessarily get our business. We want suppliers with the whole package ... robust quality systems, delivery management and development capabilities ... who work in a respectful manner with their own workforce. When we visit a supplier and talk to their people, we can tell immediately how they do business.

Based on these years of going "to the spot," we identified key characteristics of strong suppliers. We shared this "road map" earlier this year with our own supply base ... and I thought I would share it with you today. I am not going to review every detail. But I will explain several key areas. Similar to Honda's business model, we found that company culture is an extremely important characteristic for successful suppliers. This includes strong leadership - top management that frequently goes "to the spot" to motivate and involve their associates.

The process really begins with a company vision focused on the customer. This has to be central to why you are in business. Based on a customer focus, the best suppliers are willing to take chances - to develop a new part or process ahead of others. In other words, to bring new value to their customers.

With a view toward achieving global competitiveness, is the need for suppliers to create new products that offer exceptional value to their customers ... something we cannot achieve on our own - or obtain from others. Early this year, as part of new model planning, we compared the total unit cost of all commodities and part types in North America to other regions. Analyzing current cost gaps revealed that a large number of suppliers in North America are not globally competitive. We identified production characteristics as one of the primary factors in this cost gap. Achieving global cost competitiveness will require innovation in this area.

Improving production characteristics begins with identifying the benchmark in your business ... then, assessing your relative position to that benchmark in order to determine your plans to exceed it. Suppliers also must innovate production facilities from dedicated lines to flexible lines to match the flexibility achieved by their customer. Look for other ways to reduce capital investment in equipment and tooling. And, compared to global benchmarks, suppliers must look for production efficiency improvements through your entire operations - and reduce waste by optimizing material yield, scrap reduction and inventory control.

After achieving global competitiveness, other essential elements of the road map include the need for advance planning for resource deployment including new model preparation ... the ability to execute to the plan in production ... and customer satisfaction - exceeding the buyer's expectations - is the end goal.

But the real purpose behind the development of this road map, was our interest in looking ahead to the next 25 years of Honda's manufacturing operations in North America. Our goal is to remain a brand of choice ... based on our ability to create new value for our customers. But to achieve that, we must make sure that the companies with whom we have chosen to have relationships - will remain "suppliers of choice" -- so that we can continue to create new value together.

This means suppliers must know the benchmark in their industry - and honestly identify any gaps to that benchmark ... as a means to achieve global competitiveness. Suppliers of choice also listen to their customers - making sure they understand their partner's expectations . . . whether they are currently satisfied ... and where they most need support. These suppliers also listen to their associates ... because empowering people on the shop floor in continuous improvement activities is the key to achieving real and sustained improvement.

Suppliers must provide strong leadership and direction - management must "go to the spot" to monitor performance -- which means into the labs, onto the shop floor, and out to the loading dock. Every "touch point" to the customer must be closely managed. Finally ... underlying all of this ... is our belief that suppliers of choice understand the values that are most important to their business partners. And make certain their own corporate culture is well understood throughout their company and by their partners.

In this way, no matter how challenging the business environment may become ... suppliers and OEMs will have the type of rock-solid relationship that is not only mutually satisfying ... but has the strength to withstand a "perfect storm." Thank you for your attention. I look forward to your questions.

Executive Remarks: Remarks for Larry Jutte Senior Vice President, Honda of America Mfg., Inc. (Part 1 of 2)

Fri, 06 Aug 2004 16:26:43 -0700

Management Briefing Seminar

But that doesn't mean we will stand still. In just over one month, Honda of America Manufacturing will mark the 25 th anniversary of the first Honda product to roll off one of our assembly lines in Ohio. And we are planning a nice celebration. But from a business standpoint ... rather than look back ... we are focusing on the next 25 years. Today, I want to explain how we plan to advance by creating new value for the customer. And based on some of the lessons we have learned over the years, I want to offer some views on what suppliers and OEMs should be looking to achieve to maintain strong relationships.

This begins with a focus on the customer. The genesis of Honda's 25 anniversary was our belief in "building products close to the customer." But the operative word is not "building" - rather, it is "customer." Everyone talks about the customer. But our basic belief at Honda is that we cannot be satisfied until our customer is satisfied through the life of their experience with our product.

But the key is that Atlantic has done the basic things very well. Like many firsttime suppliers, initially they were challenged by our quality expectations. But it only seemed to motivate them. In just their second year with Honda, they earned a quality award. And they have earned enough of them now that I am almost tired of visiting their plant for awards presentations.

Atlantic has now grown from $7 million dollars in sales, with one Ohio plant and a handful of part numbers ... to $70 million in sales, with four U.S. plants, and more than 250 individual part numbers directly to Honda or to our Tier 1 suppliers. Most of these are value-added parts and assemblies. And they continue to look at new ways to add value. Five years ago, they began investing in proprietary indie sensor technology that reduced stamping errors by 90 percent in just the first year. This is another sign that they are poised to jump on new opportunities by keeping up with our expectations and goals.

(Continued in part 2)

Executive Remarks: Remarks for Larry Jutte Senior Vice President, Honda of America Mfg., Inc. (Part 2 of 2)

Fri, 06 Aug 2004 16:26:41 -0700

Management Briefing Seminar

Executive Remarks: Remarks for Masaaki Kato, President and CEO, Honda Manufacturing of Alabama, LLC, Traverse City Conference

Wed, 04 Aug 2004 17:43:27 -0700

Thank you, Dave. And good afternoon everyone.

Like many of you, I love to play golf. So, I am surprised to see so many of you return from lunch! But I am impressed. And I hope my presentation is worth your sacrifice to give up an early tee time.
Those of us in the industry face a number of difficult challenges that threaten survival. But even if we face a "perfect storm," Honda's approach

remains the same ... to focus on those things that are within our control. We cannot control the seas, or the weather ... we cannot control the ships of our competitors ... or the course they choose to follow.
Our sole focus is on maintaining a strong "ship" ... able to sail on its own ... using Honda's corporate philosophy as the guiding star ... to navigate toward our ultimate destination - the customer. The key is to maintain a spirit of continuous innovation. So, that our ship always remains on the cutting edge ... with the highest speed, flexibility and efficiency ... able to react quickly to change.

At Honda, we believe that achieving this upward spiral of innovation is not a matter of facilities and equipment. Rather, it is based on the skills and determination of people. That is why -- 25 years after we first began building products in America -- investing in people continues to be the focus of our efforts.

As many of you know, in one month, Honda will celebrate the 25th anniversary of the first Honda product to roll off an assembly line in America... at the Marysville Motorcycle Plant. This plant - which opened in 1979 - represents the start of the first generation of Honda's manufacturing operations in North America.

I represent the second generation of these operations... the associates at Honda Manufacturing of Alabama. Honda has advanced well beyond our first efforts at building products in America. But when I say "second generation," I am really talking about how the spirit of innovation and challenge is passed from one generation of Honda associates to the next.

Before I talk in more detail about this process, I want to make an important acknowledgement. Honda could not - and did not - achieve this milestone alone. I would like to thank our team of suppliers here in North America for supporting Honda over the past 25 years. I know many of them are here today. And on behalf of the more than 30-thousand Honda associates working in North America - thank you!

At Honda, we have long followed a philosophy of building products close to the customer. In this way, we can better serve our local customers. We contribute to the local economy. And we grow together with the local community.

It was our dream that one day we could build products close to our customers in America, the global center of the automobile industry. Pursuing this dream began just as Honda started enjoying success in the auto industry. Starting on a smaller scale ... and a team of associates with little experience in manufacturing ... we began with motorcycle production.

I think this approach repeated the steps used to build the Honda Motor Company more than 50 years ago. Honda started as a small motorcycle company ... with very little money or equipment ... and not so many experienced people compared to bigger companies. But we always had a very large ambition. When I joined Honda years later, I remember thinking "how did Honda grow so rapidly and achieve such success?"

At first, I thought our strength was based only on the genius of our founder, Mr. Soichiro Honda. But that was not true. However, the thinking that we now call Honda philosophy is what continues as the foundation of our business activities throughout the world, including North America.

This strong company culture is based on what we call "respect for the individual." Through this approach, Honda views everyone as a whole person.We look to associates not just for their physical skill, but for the ability and willingness to challenge with their ideas.

This is important both in getting the most out of everyone's talents and in achieving outstanding teamwork. But, at Honda, we don't just have good principles. We make a real effort to live this philosophy every day ... by creating this mindset among our associates. In training, it is easy to say "be challenging" or "be aggressive." The only way to really learn to challenge and innovate is through daily decisions and activities. In short, what we say should be equal to what we do.

We have succeeded in North America because our associates have embraced Honda's people-oriented philosophy. The ability and willingness of the first generation of Honda associates in Ohio and Canada to challenge ... led to our growth.

Since building that first motorcycle, Honda's operations in North America have produced more than 3 million motorcycles and ATVs ... and more than 13 million cars and light trucks. This is more than 25 percent of Honda's worldwide auto production total.

Looking at this map, you can see Honda's 25 years of manufacturing leadership in North America now includes 12 plants. With employment of more than 30-thousand associates. And capital investment of more than $8 billion dollars - not only in manufacturing operations - but also in the R&D centers that design many of the products we make here.

The key to Honda's 25 years of success is that innovation didn't stop with the first dream to build products here. We encourage our associates to constantly renew the dream. This means continuous revolution.... a spiraling improvement that has occurred throughout North America and worldwide.

Within the past five years, we introduced Honda's advanced New Manufacturing System globally, including our auto plants in North America. Through advanced weld equipment and a global standard layout for main assembly functions, we have achieved a new level of speed, flexibility and efficiency to meet the needs of our customers.

In May of this year, we also began building a new paint facility at the Marysville Auto Plant that opened in 1982. This major expansion will introduce waterborne paint systems to the Marysville plant. Such systems are already found at newer Honda facilities.

These changes will help achieve a major reduction in emissions ... and will keep our very first auto plant in Ohio on the cutting edge of the auto industry. This type of innovation has not been limited to one or two major investments - it has been an ongoing revolution throughout our history in North America. As a result, 25 years after beginning production in America, I would say we don't have any "old" plants.

Now, Honda is looking forward to its next 25 years in North America. What is important is not the facilities we have constructed, or the money we have invested. But, rather, the experience from the first 25 years to be passed on and further developed by a new generation of Honda associates... such as those in Lincoln, Alabama.

It takes a long time to train and educate people ... to steep them in Honda's unique corporate culture ... and then create an environment where they are able to - and expected to - contribute their ideas.

The first generation of production associates in America began this experience with help from Honda engineers from Japan. The second generation in Alabama is learning through the leadership of those first generation associates in Ohio and Canada.

New associates in Alabama went to Ohio and Canada to learn to build vehicles and engines in a mass production environment. Experienced managers from our plants in Ohio and Canada moved to Alabama to help construct the plant... and begin mass production of the Honda Odyssey on Line 1. And they continued to play a leadership role in the start-up of Line 2. In this way, we assured that each generation of Honda in North America is based on the same foundation.

In Alabama, I always keep in my mind that we are the newest of Honda's manufacturing facilities. We have the most advanced equipment and systems. But naturally our associates have less experience. So, if we can quickly improve our associates, we should become Honda's number one plant in North America. And that is how it should be... children should surpass their parents.

That is why we must create the mindset among associates to challenge and innovate. It is impossible to predict the market situation of the future. We know that difficult situations ... like a perfect storm ... may come. But if our associates have a challenging mindset - and the ability to innovate - they will overcome any situation. The key is to recognize that we cannot create a challenging spirit then. We must create it now.

Importantly, this challenging spirit means not stepping back from a challenging goal. I recall when I was at Honda R&D in Japan in the mid-1990s. A team of engineers came to me with a proposal for developing the Civic GX ... a vehicle powered by compressed natural gas. The team's target was to achieve ULEV emissions levels. But I responded by strongly suggesting that their target should be virtually zero tailpipe emissions.

At first, they used all of their creativity to present me with the many reasons why they couldn't achieve my target. But I wouldn't change my direction. Finally, they gave up resisting against me. And after they found they couldn't refuse, they focused their creativity on how to meet the challenge. And they succeeded. The Civic GX is not only a virtually zero emissions vehicle. In some urban areas, it actually removes pollution from the air.

The EPA called it the cleanest internal combustion engine in history. But just as importantly, our engineers learned a valuable lesson about innovation and challenging themselves - that they are applying to other projects.

Now, my responsibility is building an innovative environment in Alabama. But I am not focused on plants and systems - rather, I am focused on the mindset and culture of Honda associates.

We have Japanese associates who come and go every five years or so. And we have a number of managers from Ohio and Canada. But it is our associates in Alabama who must be the key players. And it is up to experienced associates like me to transfer our knowledge, experience and challenging spirit to them. I view this both as my duty ... and as my gift.

The challenges we face in Alabama provide the opportunity to deliver this gift. Honda started building Odyssey minivans and V-6 engines in Alabama in November 2001. The plant faced big challenges from the very beginning. Customer demand for Honda's light truck products was growing fast. And our team had to begin mass production just 20 months after breaking ground - six months ahead of schedule. That was the fastest construction in Honda history.

Even after quickly expanding capacity of this first line, demand for the Honda Odyssey, Acura MDX and Pilot that are made in Canada continued to grow. So, we decided to construct a second line in Alabama.

The original plan was to begin mass production on Line 2 last month. But, to meet the needs of our customers ... again, we decided to accelerate construction. We targeted Line 2 start up for April ... just 17 months after breaking ground! Or three months faster than Line 1. Some of our team in Alabama thought this was impossible. And this sounded familiar to me. It is human nature to resist a big challenge.

But our team had good reason for concern. Honda Manufacturing of Alabama is less than three years old. And we were not just building a second line. We were hiring all new associates - to effectively double employment and capacity - and become Honda's largest source for light trucks in the world.

We were building a product that was new to our plant - the Honda Pilot. And on Line 1 we were preparing for our first full model change this fall - when we will become the exclusive global source for the Odyssey.
Every one of these issues was a major challenge.

Yet, on April 27, we started mass production on Line 2. The single most important element in meeting all of these challenges was Honda's existing foundation in North America ... in other words, the leadership of our associates from Ohio and Canada.

Our locally-hired Alabama associates have been outstanding - I am proud that the Odyssey minivans built in Alabama lead the minivan category in initial quality. But credit for these achievements also goes to the excellent training and direction we received from our North American leadership.

Without the experience from Honda's first 25 years of manufacturing in North America, I believe we would have failed at the tremendous challenges we faced in Alabama. Because I credit this leadership with bringing a true spirit of innovation to Alabama.

For instance, our Line 1 is only three years old. And this first line made a number of advancements based on the experience of our Mother Plant in Canada that first launched production of the Odyssey, MDX and Pilot. But technologies advance every year. So, when we were building Line 2, if we made it just a mirror image of Line 1, it would not have been on the cutting edge of the industry.

Instead, our team of associates applied a number of innovations to further advance flexibility, efficiency and safety. On Line 1, sub-assembly of the instrument panel occurs away from the point on the main line where it is installed in the vehicle.
For Line 2, our associates moved sub-assembly directly across from the point where it is installed. And this is helping to reduce inventory. It also improves communication -- providing rapid feedback on quality and other issues from the main line back to sub-assembly.

It is standard practice in Honda auto plants to remove the doors during production -- making it easier to perform assembly functions inside the vehicle. On Line 1, we use multiple carriers to convey doors through sub-assembly. Our Line 2 team changed the system, to allow doors to remain on one carrier until they are reinstalled on the frame. This improves efficiency. They also added height adjustments to the carrier to improve ergonomics for different processes.

In some cases, very small changes pay big dividends. In stamping, Line1 requires that an air-line be plugged in to the vacuum cups on the handling arms with each die change. This takes four and a half minutes. On Line 2, they redesigned the equipment so that the air line runs into a base plate - and doesn't require insertion by hand. This die change now takes just 4 minutes. A die change occurs about every two hours. So, on average, we are now getting five to six more parts per die change - that is 11-thousand pieces per year!

When you engage associates in fostering this type of innovation all over the plant - you create a faster, more flexible and efficient operation ... one that is better able to react to market demand ... and better able to deliver high quality, reasonably priced products to the customer.

Now, we are involved in the first full model change in the history of the plant. This month, our associates on Line 1 will begin mass production of the all-new 2005 Odyssey minivan. I can't provide you with any details about the new Odyssey. But I will say that this challenge has already had a great impact on Honda associates in Alabama.

Our experience over the 25 years of producing products in North America has shown that full model changes provide the best opportunity for the growth and maturity of associates. And during the early stages of development, a number of our engine associates went to Japan to build engines in a prototype lab. And some 120 Alabama associates went to the New Model Center in Japan to work with R&D on the processes now used to assemble the new Odyssey.

By making hundreds of change requests, they helped innovate the design of the product ... and the manufacturing processes used to build it. As a result, I feel very good about our ability to launch an all-new product with the highest quality.

Experience matters. It teaches you how to work together and support each other ... and it teaches that the key to success in this ever-changing business environment is to continuously challenge and innovate.

Honda's ongoing challenge to manufacture quality products in North America is inspiring Alabama associates to make this type of contribution. As a result, Honda Manufacturing of Alabama is no longer just a result of our experience in North America. Our associates are rapidly becoming a part of that experience.

Twenty five years after starting production in North America, the scale of our operations here has grown. But the most precious fruit is not the size of these operations, but the knowledge, experience and corporate culture that will continue to be passed onto new generations of Honda associates.

Most importantly, by pursuing our dream to produce products close to our customers in America ... we are now better able to deliver innovative products and other new dreams to those customers.

Thank you for your attention.

Executive Remarks: Remarks for Masaaki Kato President and CEO, Honda Manufacturing of Alabama, LLC Management Briefing Seminar

Wed, 04 Aug 2004 17:30:34 -0700

Those of us in the industry face a number of difficult challenges that threaten survival. But even if we face a "perfect storm," Honda's approach remains the same ... to focus on those things that are within our control. We cannot control the seas, or the weather ... we cannot control the ships of our competitors ... or the course they choose to follow.

Our sole focus is on maintaining a strong "ship" ... able to sail on its own ... using Honda's corporate philosophy as the guiding star ... to navigate toward our ultimate destination - the customer. The key is to maintain a spirit of continuous innovation. So, that our ship always remains on the cutting edge ... with the highest speed, flexibility and efficiency ... able to react quickly to change.

As many of you know, in one month, Honda will celebrate the 25 th anniversary of the first Honda product to roll off an assembly line in America... at the Marysville Motorcycle Plant. This plant - which opened in 1979 - represents the start of the first generation of Honda's manufacturing operations in North America.

This strong company culture is based on what we call "respect for the individual." Through this approach, Honda views everyone as a whole person. We look to associates not just for their physical skill, but for the ability and willingness to challenge with their ideas.

Looking at this map, you can see Honda's 25 years of manufacturing leadership in North America now includes 12 plants. With employment of more than 30thousand associates. And capital investment of more than $8 billion dollars - not only in manufacturing operations - but also in the R&D centers that design many of the products we make here.

Now, my responsibility is building an innovative environment in Alabama. But I am not focused on plants and systems - rather, I am focused on the mindset and culture of Honda associates.

For Line 2, our associates moved sub-assembly directly across from the point where it is installed. And this is helping to reduce inventory. It also improves communication -- providing rapid feedback on quality and other issues from the main line back to sub-assembly.

Most importantly, by pursuing our dream to produce products close to our customers in America ... we are now better able to deliver innovative products and other new dreams to those customers.

Thank you for your attention.

Executive Remarks: Honda Announces Directions for the New Mid-term Plan

Thu, 15 Jul 2004 15:47:48 -0700

Honda Motor Co., Ltd. today announced the direction and some initiatives for the new mid-term plan that will begin with the start of the next fiscal year, April 1, 2005.

Directions for the new mid-term plan: For the new mid-term, Honda will pursue the creation of new joys and further highlight Honda's originality. Creation of new joys means to continuously provide products and services that are ahead of the times and beyond customers' expectations. In order to achieve these objectives, Honda will focus on the following four core points of Honda's uniqueness during the new mid-term.

1) R&D: strengthen the ability to create new and unique technologies and products, which is the origin of Honda's uniqueness.

2) Manufacturing: create dynamic manufacturing operations where high quality is achieved in every manufacturing process.

3) Sales: strengthen sales and service to achieve stable sales and lifetime customer satisfaction.

4) Mother function of Honda Japan: strengthen the capability of Honda in Japan to create new technologies that support the growth of global operations.

Honda will focus on technology, quality and motivation of Honda associates in order to strengthen the core points of Honda's uniqueness and build a stronger Honda brand.

Motorcycle Business:

Develop new manufacturing technologies to achieve even lower cost for Honda's affordable motorcycles that account for the majority of current worldwide annual sales of nearly 10 million units.
Enhance the mother function of the Kumamoto factory in ATV production such as the development of new manufacturing technologies and support for overseas operations.

Automobile Business:

Position Honda's innovative SH-AWD (Super Handling All-Wheel Drive System) as one of the advanced technologies that enhances fun-to-drive characteristics and continue to advance this technology to expand its use to more models.

--- Automobile: Japan

Increase focus from the customers' viewpoint to achieve the highest possible level of lifetime customer satisfaction.
Strengthen Honda's minivan product lineup and continuously have a full model change or new model introduction each year in this category.
Establish a system to provide better overall service to our customers by promoting personnel training and developing IT-based systems.
Retain current total of 8.7 million Honda customers while adding more new customers.

--- Automobile: North America

Continue introduction of new products in the light truck category, including an all-new Odyssey (fall 2004), Honda SUT (spring 2005), and Acura brand SUV.
Strengthen Honda's competitive advantage in the passenger car category with an all-new Acura RL (fall 2004) and a new entry-level Honda model (2006.)
Continue to introduce vehicles with high fuel efficiency such as the Accord Hybrid (fall 2004) and all-new Odyssey equipped with Variable Cylinder Management (VCM) system.
Increase the flexibility of Honda's overall production capacity in North America to better meet market demand.

--- Automobile: Europe

Expand and strengthen Honda's lineup of diesel-powered vehicles by adding CR-V (early 2005), FR-V (known as Edix in Japan) and the next generation Civic.
Strengthen diesel engine production by increasing capacity of molding and machining at the Honda Engineering Tochigi Center and by transferring the assembly process to the Suzuka and Saitama plants (fall 2004). Achieve daily production of 300 units by spring 2005. Begin diesel engine assembly at Honda's UK engine plant by the end of 2005.

-- Automobile: China

In addition to Guangzhou Honda's annual production capacity of 240,000 units, capacity of Dongfeng Honda (Wuhan) will be expanded to 120,000 units over the next three years.
Guangzhou Honda will begin production of the Fit 5-door in fall 2004. Expansion of Dongfeng Honda's (Wuhan) product lineup is being considered.
Establish Honda Engineering China Co., Ltd., a local subsidiary of Honda Engineering Co., Ltd in August, 2004 (tentative) to strengthen support for local production plants as they expand capacity, add new models and procure production equipment.
Improve the quality of Honda's dealer network by adding sales of pre-owned vehicles to some dealer operations by the end of 2004.

-- Automobile: Asia/Oceania

Expand the product lineup such as the Jazz, with local production shifting into high gear.
Establish a training center in Thailand (August 2004) to develop staff for both sales and production areas in order to build a solid foundation to achieve high customer satisfaction.

Power Product Business

Further increase competitiveness by employing a new global production supply network commercial use GS series engines are produced in Thailand and China while home use GC series engines are produced in the U.S. and Europe.
Further strengthen Honda's competitive advantage in the area of the environment with Honda's cogeneration system as well as marine engines and general purpose engines which exceed environmental standards. The development of even cleaner engines will be continued.

Aviation Business

Establish Honda Aero, Inc. in the U.S. to oversee Honda's aviation engine business. (July 2004)
Establish the Wako Nishi R&D Center to consolidate and strengthen aviation engine development. (July 2004)

Future Technology Development

HRI (Honda Research Institute) in Japan, the U.S. and Europe will hire engineers from a variety of industries and universities, and collaborate with outside organizations such as universities and venture companies to pursue development of new technologies in new areas such as new materials, intellectual systems and plant genomics.

Robotics

Honda's invention of Macro Stabilization Control Technology received the 2004 Invention Award from the Minster of Education, Culture, Sports, Science and Technology. This invention was achieved through the research for bipedal walking robots. Honda will apply this technology in the future to develop posture control technologies for motorcycles, automobile and other vehicles.

Motor Sports

Honda is now in the final stages of renewing its contract in Formula One racing with British American Racing beyond next year. Honda will strengthen its team with a long-term view to win the series championship.

Executive Remarks: Remarks by Steve Center, Morgan Stanley Seminar (Part 1 of 2)

Wed, 07 Apr 2004 17:59:10 -0700

Thank you and good afternoon everyone. It is a real pleasure for me to be here today.

As a proud graduate of the Bronx High School of Science class of 74 - it is great to be back in New York City. I still have a lot of family here - so I look forward each year to the New York Auto Show as an opportunity for a little homecoming.

I am also happy to be here to talk about Acura. And that is saying something. Because there have been a few times in our history when we wouldn't have had much confidence to attend this event.

But today we are riding a string of successes and -- a little over two hours ago -- we offered journalists a first peek at the Acura RL prototype sedan. In a moment, I am going to do the same for you. This vehicle continues Acura's advance in the direction of performance, technology leadership and luxury.

But, before I get into the details of the next RL - I'd like to provide you with a little perspective on the direction of Acura - why we are feeling so confident about our brand and our products - and the positive contribution Acura is making to American Honda's bottomline.

I think most of you know the Acura story. The launch of the Acura Automobile Division on March 27, 1986, was a uniquely historic event, not just for Acura and our customers, but for the entire auto industry. It was the first entirely new automobile division since Lincoln Mercury in the 1950s. And the first Japanese luxury brand of any kind.

The initial model lines - Legend and Integra - were very well received. But more than just introducing a new line of cars, Acura introduced a new level of service. We ranked number one in the J.D. Power Customer Satisfaction Study four times.

Other successes were to come, including the mid-engine NSX in 1991 - an exotic sports car with the unmatched reliability of a Honda Civic. And Acura has been a technology leader - not just within the Honda family - but within the entire industry. And I should point out that, although these technologies were launched more than a decade ago, many still have not turned up in the products of our biggest competitors. Acura has consistently been a pioneer for the industry.

But, I must honestly say, that despite this onslaught of technologies, and despite the fact that Acura was the first Japanese luxury nameplate, the Acura brand wasn't delivering on its original promise. Without wasting your time on the details, we simply were not consistently offering a clear direction or identity of what we wanted to be. This had to be confusing for the customer. And for Acura, it represented a major missed opportunity. A failure to capitalize on our early advantage -- and our technological abilities.

But those days are over. Based on our sales results the past few years - based on consumer research - and based on the feedback we receive from our dealers - there now is growing clarity about Acura as a home for performance driven products that showcase advanced technologies and a brand known for top-class customer service.

In fact, we feel strongly and confidently that we have moved beyond the "turning point" in our turnaround efforts. Acura is rapidly becoming a "destination" brand, actively shopped by customers seeking performance luxury vehicles. No longer the home simply for customers seeking a value price, Acura vehicles now arouse passion.

Sales numbers don't tell the whole story. But they should give you a clear idea of the momentum we're beginning to generate. Acura has now posted five consecutive monthly sales records - including an all-time record last month. We just had our best first quarter in history, sales are up 29 percent from a year ago - which means we are on a pace to break last year's all-time sales record of almost 171-thousand vehicles.

We sell every Acura model we make. We protect the re-sale market - with the highest residuals of any nameplate - which also puts us in a much better profitability picture.

I am not going to throw a lot of research up here on the screen - but I do want to show you a couple of key indicators. Research by Allison-Fisher shows that Acura shopping is at its highest since July 2002 - trailing only Lexus and BMW. And we have leapfrogged several key luxury class competitors in buying considerations among aware consumers.

There is a reason for this success. Our product lineup is better and more balanced than ever. And Acura models are really well-positioned within the luxury segment. We have no intention of going head-to-head with Mercedes and its $90,000 sedans. Most of our products are positioned in the $25,000 to $45,000 price range - which accounts for almost 80 percent of all luxury sales.

Our model direction over the past five years has been consistently moving up into the performance and prestige end of the industry. Based on these strong products, Acura's Brand Position has improved dramatically. According to Allison Fisher data, consumers now see Acura clearly as a member of the performance luxury competitive set alongside Audi.

This does not put us in the traditional luxury area with Lexus and Mercedes. Rather, we are in the vicinity of BMW. And that is precisely the target we set with the revitalization of Acura.

Significantly, Acura has a good presence in every fast growing segment within the luxury class. Of course, when you look at the repositioning of the Acura brand, you have to begin with the MDX. From the moment it was introduced in 2001, this SUV created a powerful halo effect that has lifted the entire brand - attracting true Euro customers for the first time. It debuted at the top of its class - winning virtually every major award. But I think the greatest tribute to this model is that through continuous improvement, it remains at the head of the class. As a very successful dealer in California told me last week, "The MDX is exactly where luxury SUV customers want to be."

For instance, this year's MDX gets more horsepower, additional interior features, new exterior styling and a new sound system - all designed to help it maintain its position as the benchmark luxury SUV. And this after adding 30 new features for 2003.

Even with the launches of XC90, RX 330, and Touareg -the MDX remains strong. As you may know, American Honda employs lower incentives than anyone in the industry. And in this 4th year of its life cycle, MDX - the most profitable vehicle in our lineup - is still a top seller without incentives. Three years after its launch, there is still a waiting list at many dealerships across the country.

Building on this momentum, last year - while many customers were looking ahead to the fully redesigned TL - we surprised them with an all-new model, the TSX. We envisioned TSX filling the gap in the Acura line-up between the RSX and TL. But TSX accomplished much more than that. Perhaps some of you saw this billboard downtown - but enthusiasts sure have taken notice. Car & Driver magazine named it one of the ten best cars in America. Most importantly, our customers have taken notice. TSX has attracted the young upwardly mobile buyers it was designed for. Almost 45 percent of the buyers are under the age of 35.

Last year, we forecast sales of 15-thousand units - but beat that goal by more than 20 percent. As for profits, basically every one of these sales has been a full gross deal and we expect both profits and demand to remain high. From an original sales forecast of 24,000 units, we are now expecting sales of 30,000 units this year.

On the heels of this unexpected -- yet undisputed -- success, we launched an all-new TL last fall. The previous TL was pretty darn good. It virtually sold itself for more than four years and had the highest residuals of all its competitors. But where the last TL was a success based largely on its value, buyers of the 2004 TL place emotional reasons as high as value as top purchase considerations.

The all-new 2004 TL debuted last fall and continues to set monthly sales records. But TL is far more than a sales success. As Automobile magazine put it - "This is not just a TL makeover; it's an Acura makeover." And both our consumer research and dealer feedback supports that statement. When you look at consumer intenders planning to buy a car in the next six months, the TL has gone from mid-pack to second. Next year, we hope to be number one.

TL is bringing in customers to the brand that we never thought we'd get. dealers are saying they never thought they'd get so many BMW owners trading in their cars - 3s and 5s. And that is not in any way a knock at BMW. They make great vehicles. It just says something good about Acura.

But the young buyers of today want more than just go, stop, turn. They want the latest in advanced technology. And it is here, starting with TL and next with the all-new RL - that Acura is taking the lead and setting a new industry standard. TL is the first vehicle in North America equipped with a standard DVD-Audio 5.1 surround sound system. And the first with a standard HandsFreeLink' phone system allowing calls to be made through the car's audio and voice recognition systems.

You may not hear many automakers at this event brag about their sound system, but the Acura/ELS Premium 8-speaker Surround Sound is a real breakthrough. The result is a huge increase in fidelity with 500 times the resolution of CD audio.

This ELS Sound system is not some off the shelf product. Honda R&D worked with Panasonic and a top music producer in its development. Road and Track magazine said it rivals "the best concert halls in the world." And - along with the car - I encourage you to give the sound system a spin.

We are projecting first year sales of 65,000 vehicles. But the net effect of our early investment in advanced electronics is that there is more equipment on TL at $33-thousand than other vehicles at 45-thousand and up. Compare our pricing versus TL's competitive set and you can see that we are positioned very competitively. And, when you factor in the TL's advanced content and new technology we end up with a significant advantage.

I think this demonstrates the strength of Acura's strategy of offering our customers only fully-featured vehicles. Generally speaking, this means to apply as standard equipment, "luxury" features that our key competitors consider options - or include only in packages.

For instance, the TL price includes every feature - with only two options for the voice recognition navigation system, and special high-performance tires for the 6-speed manual. And our customers are embracing the navi system - for another two-grand.

We originally forecast the navi at about 25 percent of sales. We are now going to 40 percent and still having trouble meeting demand. But even an attractive feature like XM satellite radio is standard on all models - except the RSX. High power audio systems - either BOSE or ELS - are standard everywhere. And HID headlights are standard on the TSX, TL and RL.

This fully-featured strategy is key to elevating the prestige of our products and attracting luxury class customers. But it has other benefits as well - making products easier both for our factories to build and for dealers to order.

Another important standard feature of Acura vehicles is safety. This is consistent with Honda's global "Safety for Everyone" commitment. Both the TL and TSX earned the highest possible rating for frontal crash tests -- "best pick" and "good" designations from IIHS and a 5-Star rating from NHTSA. These vehicles join the Acura MDX as best in class performers in safety. This is another important and growing consideration for consumers. More than that, safety technology - as with our leading environmental technologies - is one less thing we will have to invest in when new regulations take effect. We are well ahead of the competition in most of these areas.

(Continued in part 2)

Executive Remarks: Remarks by Steve Center, Morgan Stanley Seminar (Part 2 of 2)

Wed, 07 Apr 2004 17:58:41 -0700

Another important aspect of Acura's success is our substantial investment in research and development and manufacturing operations in North America. In fact, this year is the 25th anniversary of the first product we assembled at our original plant in Ohio. We produced our first Acura model in America in 1996.

Acura is unique from our European and Japanese competition in the luxury segment in terms of the advantage of our local R&D and production operations. We currently build our two biggest selling Acura models - the TL and MDX - at two plants in North America. But these models were each developed in America as well. Two of our most sophisticated and advanced products were each designed at our LA Center and developed by engineers in our Ohio Center. These R&D operations have been critical to Acura's success.

Of course, the current Acura lineup also includes the RSX sports coupe at the entry point. RSX remains very important to us. Not just because of sales volume, but because it provides us a gateway to lifetime owner loyalty as young buyers find a home at Acura, and then move up through the product line. A Car and Driver magazine "10 Best" pick in its first two years - RSX is our most youthful entry. And in this role it helps attract the type of buyers that every luxury brand covets -- young career-oriented professionals. With a minor model change coming this fall - again, our commitment to continuous improvement - we will keep it fresh in the marketplace.

Another area where we need continuous improvement is the experience our customers receive at the 260 Acura dealerships across America. We made great progress in improving customer satisfaction last year, as Acura jumped from 7th to 3rd place in the JD Power rankings. It's great to have Acura back in the top 3, but when you consider the roots of the Acura division in that number one position - you can bet that our target is to return to the top spot again.

One of our major efforts toward this goal is a program we call EXCELL -- Exceeding Customer Expectation Levels for Life. Dealers are independent entrepreneurs, but we need consistency in the treatment of our customers. EXCELL roots out inconsistencies in customer handling - and gives dealers a clear process to guide improvement. The goal is to ensure that dealers treat Acura customers in a way that is consistent with the performance, quality, and integrity of our products.

In addition we have undertaken a facility image program - and by the end of this year, more than 80 percent of Acura stores will have completed facility upgrades designed to enhance the look and feel of Acura dealerships inside and out - and create a more customer-friendly sales and service environment.

And as the founder of American Honda's E-business Division, I have to mention the important role our world-class Acura internet environment plays in customer satisfaction. This now includes a shopping site, Owner Link, and an E-Store where dealers can sell genuine Acura parts and accessories on-line.

Acura and Honda shopping sites are the only sites in the industry that can route customers back to their prior dealership. Customer leads go free of charge to dealers who have been certified on the Acura interactive network. So, there is an incentive for our dealers to be just as internet savvy as our sophisticated customers.

We have to do these things because our MDX, TL and TSX models are getting the right people to the brand: high education - high income - keeping Accord owners and other members of the Honda family as they grow up - and conquesting Euro brands as well.

The good news is - we are continuing our direction of introducing new vehicles that are focused on high performance and a high level of useful technology.

The market acceptance we have received on the new TL suggests we are headed in the right direction. And it tells us the next RL is right on the money.

We just debuted the RL Prototype sports sedan at the New York Auto Show -- with a 300-horsepower V-6 engine, a super handling all-wheel drive system, sporty styling and breakthrough telematics technology. The RL Prototype will provide a driving experience that other cars in its class just cannot match.

Let me highlight just a few areas that I think are really worth your attention. Unlike competitor all-wheel drive systems, the Super Handling All-Wheel Drive system is the world's first to distribute the optimum amount of torque between the front and rear wheels, and the left and right rear wheels -- based on driver input and driving conditions. The result is class-leading cornering performance and stability, a reduction in torque steer, as well as enhanced traction on dry and wet surfaces.

One of the most exciting trends in the industry has been the emergence of "telematics." Acura wants to be a leader in effectively integrating these new technologies into our vehicles to enhance our customers' driving experience. We won't burden them or create greater distraction. To the contrary, these are very customer useful features that will very soon be in hot demand.

The RL Prototype has the industry's first standard Real Time Traffic capability. This AcuraLink' Satellite-Based Communication System transmits information to and from the vehicle with XM as the broadcast medium - and a Bluetooth enabled cell phone as the back channel to servers at American Honda.

In this way, the RL Prototype's 8-inch navigation screen displays personalized, up-to-the-minute traffic information relative to the driver's position, including traffic flow, accidents, and construction delays -- currently in 20 major metro areas, including New York, Los Angeles and Chicago. Unlike radio traffic reports, the RL's real time traffic system provides a constant flow of relevant information reflecting conditions along the driver's chosen route.

There are other features - including real-time diagnostic information unique to the vehicle that will inform the driver whether to stop or continue driving. There is even a text to speech option - to minimize the potential for driver distraction. But you can't buy this system from a supplier. This is home grown Honda technology, with patents pending on delivery device and hardware.

The RL Prototype's technology advancements also include safety. RL will be the first Acura equipped with the Advanced Compatibility Engineering body structure Honda announced last year. It is designed to enhance passenger safety by efficiently absorbing and dispersing collision energy, and reducing override in collisions with SUVs and other high riding vehicles.

The ACE body uses a new frame structure to help deliver improved protection for vehicle occupants -- while at the same time reducing aggressivity toward other vehicles in a frontal collision. Front, side and side curtain airbags also are standard - as is Vehicle Stability Assist (VSA).

Now, if you are looking for big, fluffy luxury cars with a V8 engine -there are vehicles like that out there in the traditional luxury segment. But that is not our customer. The "Great One" - hockey legend Wayne Gretsky - used to say "Most players go to the puck. I go where the puck is going to be." Well, in that same spirit, we are not aiming at the current market, we are going where the luxury customers' interests and demands will be in the future.

Our target with RL is a flagship vehicle for customers in their '40s. We want customers with a long career of buying new luxury cars. And, along with the TSX and TL, the new RL will give us a solid 1-2-3 punch in performance luxury sedans.

But - once again - we are not stopping there. Those of you who went to the Tokyo Motor Show last year or Detroit Auto Show in January, probably saw the 300-plus horsepower HSC -- High-Performance Sports Concept. In fact, it won "best of show" at the Tokyo Show. The HSC combines the ultimate in supercar performance with the interior comfort and handling ease of a daily driver. And it will serve as the basis for the next generation NSX you will see within a few years. Sales volume doesn't rival our other models, but the NSX continues to enhance Acura's high performance image. And this is an exciting direction.

Further, as you probably know, we have acknowledged our plan to introduce a new SUV - underneath the MDX. While I can't tell you much about this new vehicle, you can bet that - consistent with Acura strategy - we are going to go where we see the greatest market potential. And the largest growing segment is the smaller SUV market. We are excited about the potential of this new product.
Further, like both the MDX and TL, this new vehicle is being developed at our R&D Centers in America and will be produced at one of our plants in North America. This has been a great advantage for us in meeting demand for both TL and MDX.

And demand is a good word for me to finish with today. Because the Acura models on the road today are generating true demand. And we are confident this will continue. Acura is now focused - with a clear direction - a certain understanding of what our products should be - and a strong commitment to provide our customers with a level of service matching those products.

I think it is fair to say that we have now created a number of "Destination products." And we believe we are on the verge of the next step - making Acura a "Destination brand."

Thank you for your attention. With the help of Mr. Oshima on the financial end, I am now happy to take as many questions as time allows.

Executive Remarks: Remarks by Takeo Fukui, President and CEO, Honda Motor Co., Ltd. -- North American International Auto Show

Mon, 05 Jan 2004 13:43:13 -0800

Good morning ladies and gentlemen. And thank you for joining Honda again.

This was the first opportunity for most of you to see ASIMO. But probably all of you are wondering why we brought this advanced humanoid robot to one of the world's great auto shows. I am sure most of you look at Honda as an automobile company. But we see ourselves differently.

From the foundation of Honda more than 50 years ago, we have viewed ourselves as a mobility company. We began by producing motorcycles, because that was the quickest way to provide mobility. But over the years, we continued to focus on creating new dreams for our customers - and harnessing advanced technology to provide new and better mobility for people.

Certainly, it is too early to expect an ASIMO in your living room. But the same passion for new technology that created ASIMO is leading us in other directions in mobility.

Last month, we conducted a successful first test flight of a new Honda business jet in North Carolina. The airframe, wing design and compact turbofan engine are the result of original research and design by Honda engineers. We have created a business jet with high performance, high fuel efficiency, low emissions - and a spacious cabin. Sounds like a Honda, right?

Programs like this business jet and the development of ASIMO have important value for Honda. We have always targeted the world's most advanced technologies - and then developed new products based on the skills of our own engineers.

The words of our founder -- "Do - not - imitate - others" -- are burned in the minds of everyone at Honda. We have no interest in following. The value of creation is not only in technology. The value is in the Honda engineers who create that technology. And who will create new products for our customers in the future.

This philosophy impacts everything we do as a company -- especially the real world products we create for customers. Products that offer the highest level of safety and advanced environmental technology - and yet are still fun to drive.

Today, I would like to briefly outline Honda's near term strategy for advancing environmental technologies in North America. Even from our leadership position, we believe we - can - do - more to provide real world benefits for our customers and society. First - we believe it is possible for conventional engines to be cleaner and more fuel efficient.

Toward that goal, this fall, we will introduce a vehicle in the U.S. with Variable Cylinder Management. A V6 engine with VCM runs on all six cylinders during acceleration. Yet uses only three cylinders when cruising. Thus, VCM enhances fuel efficiency while maintaining fun-to-drive - and other performance features.

However, with conventional engines there is still wasted energy during deceleration and idling. So, we invested in original hybrid technology to increase fuel efficiency and performance.

Insight has ranked number one in fuel economy for five straight years. But the strength of Honda's IMA hybrid technology is that it is transparent to the customer - lower in cost and easier to add to existing models. This led to the Civic Hybrid.

Today, we are announcing the next step. The further expansion and evolution of Honda's hybrid lineup. This fall, Honda will introduce an Accord Hybrid with a newly-developed V6 IMA hybrid system. This new IMA system - combined with VCM - achieves fuel economy on par with the compact Honda Civic. But with power and performance exceeding the excellent acceleration of the current Accord V6 engine. This brings to three the number of Honda Hybrid models, including our two most popular model lines -- Civic and Accord.

As one possible direction for the future - today, you can see the IMAS. Ultra-light and exceptionally aerodynamic, the IMAS concept combines environment-friendly performance with sports-car excitement. After all, this is Honda, so it must be fun to drive!

By investing in hybrid technologies we also learned about electric motor control technologies that we have applied to fuel cell vehicle development. Importantly -- the Honda FCX is still the only fuel cell vehicle certified by the U.S. EPA and CARB - and in use on public roads today.

But we have already advanced to the next step beyond this leadership position. Last fall, we announced the development of Honda's original fuel cell stack. This stack has cold start capabilities in below freezing temperatures. And it is more compact. We are now conducting real world tests on public roads. But, today, we are announcing our plan to introduce an FCX with this original stack in the U.S. and Japan -- in the year 2005.

Just as Honda pioneered and advanced low emission technology and hybrid technology, the goal of these fuel cell vehicle introductions is to gain real world experience. In this way, we advance our knowledge of the strengths and limitations of fuel cell technology for more widespread application in the future.

Today, we have the Kiwami concept where you can see the benefit of Honda's more compact stack technology. Advanced packaging makes possible a lower floor - this enables us to create a roomy interior despite the low roofline.

But Honda is not just developing fuel cell vehicles. We are also taking leadership in the effort to develop a hydrogen fueling infrastructure. This includes a hydrogen station powered by advanced solar cells developed by Honda engineers. And a Home Energy Station that makes hydrogen from natural gas. These concepts represent an important means to reduce CO2 emissions.

This spring, we will begin research with this station and Honda's original stack FCX at our R&D facility in California. And we will conduct real world confirmation in cold climates in states on the East Coast. Through these original efforts, our goal is to contribute to the introduction of a hydrogen refueling infrastructure.

But Honda's commitment to advanced technology is not restricted to the environment. Two months ago, we announced a major expansion of safety technology in all Honda and Acura vehicles by 2006. We made this commitment ahead of the industry-wide program based upon our philosophy of "Safety for Everyone." We believe it is possible to advance both safety and environmental technologies. And, at the same time, make vehicles that are fun-to-drive. We even engineered our fuel cell vehicle to meet or exceed all government safety standards. And everyone who drives it, is surprised by its power.

This type of commitment is also the reason we make vehicles like the Acura NSX and Honda S2000. The production volume is small. But the value is high - both for our customers and for the Honda engineers who develop these vehicles. And that is the thinking behind the HSC concept car that you can see at the Acura stand. This model will serve as the basis for the next generation NSX you will see within a few years. We are committed to achieve the industry best performance - no - rival - exists - for this vehicle.

We believe Honda has a unique role within the industry. This means leading the way in advancing the important areas of safety and the environment. While, at the same time, offering our customers products that are fun to drive. And we will continue to use our strength in developing original technology to provide new and improved mobility for our customers.

This also means traveling new, more challenging roads ahead of others. In this way, Honda will achieve its vision of becoming a company that society wants to exist. Thank you.

Executive Remarks: Remarks by Tom Elliott, executive vice president of American Honda Motor Co., Inc,

Sun, 04 Jan 2004 13:58:55 -0800

Good afternoon everyone. Well, for years we've told you we have no plans for a truck. Today, I'll tell you that we do. More accurately, a Sports Utility Truck.

And although what we're showing today is a concept, it gives you a good idea at the direction that we will take with an all-new Honda SUT to be built in Alliston, Ontario, and launched in the 2005 calendar year

Before you start thinking this is Honda's first truck, let me take you back a few years to 1963 when Honda launched its very first automotive product, the T360 sports truck. Powered by a 360cc engine, the T360 put out 30 horsepower.

Obviously, we've come a long way since then.

In the past ten years, Honda light trucks have played an important part in our growth, both in terms of our ability to retain existing Honda customers and in attracting new buyers to the Honda family. In a short ten years, American Honda has gone from a lineup without a single light truck, to sales of more than half a million SUVs and minivans in 2003.

At the same time as Honda has been growing its light truck sales, the truck market itself has been changing.

In much the same way that SUVs evolved from hard riding vehicles with body-on-frame construction to more refined and well-appointed trucks and finally to car-based platforms, the pickup truck market is starting to undergo a similar evolution.

Today's trucks reflect a growing diversity in the way trucks are being used and viewed by American consumers, many of whom are looking at trucks not as work vehicles but instead as products to support their active lifestyles.

What was once a market dominated by sparsely appointed two door pickups designed for use on the farm and construction sites has changed dramatically in recent years to include a wide array of variations on the traditional truck theme, including quad cabs, crew cabs and, most recently, truck-based SUTs.

All these vehicles, to varying degrees, are trying to address the desire on the part of today's consumers for trucks with a higher level of refinement, sophistication, style and comfort.

The Honda SUT takes the next step in addressing this trend.

By combining the utility of a pickup, the practicality of an SUV and the advantages of unibody design - including better packaging, improved comfort and superior ride and handling dynamics - the Honda SUT represents a next-generation truck for a new wave of truck buyers, with more refined tastes and active, outdoor-oriented lifestyles.

As you heard from our designers, this concept centered around the image of a 'cool dad' as the embodiment of this new type of truck buyer.

The cool dad has a growing family and outdoor hobbies and is looking for something that is responsible, practical and comfortable enough for his family, but at the same time has the rugged utility to support his active lifestyle.

But the cool dad is not just a lifestyle image. More importantly, it represents a large group of existing customers who have grown up in the Honda family, and will serve as the main source of buyers for this new vehicle.

The Honda SUT delivers on all their expectations for an active lifestyle vehicle.

Taking advantage of its unibody platform, the Honda SUT delivers a spacious five-passenger interior in a more sensibly sized vehicle with substantially improved ride comfort, handling performance and overall refinement versus traditional truck-based vehicles.

In the back, the Honda SUT delivers the utility and cargo space this buyer is looking for. With an extra-wide five-foot bed, a deeper cargo box and less wheel arch intrusion than a typical truck, the Honda SUT offers improved cargo hauling capabilities versus existing truck-based SUTs.

And because it's a Honda, it needs to be fun-to-drive. With a high output, high torque all-aluminum V6, four-wheel independent suspension and four wheel disk brakes, the Honda SUT Concept delivers the kind of sporty performance that the "cool dad" can definitely appreciate.

With its wide track, and advanced electronically controlled four-wheel drive system, the Honda SUT provides a high level of stability, controllability and all-weather handling confidence.

It's also a vehicle that takes seriously its responsibility to society and sets a new standard in safety and environmental responsibility.

In keeping with our Safety for Everyone concept, the Honda SUT carries a full array of advanced safety features including Vehicle Stability Assist, Intelligent front and side airbags systems with occupant sensing capabilities and a side-curtain airbag system with rollover sensors.

In the category of emissions and fuel efficiency, the Honda SUT excels with Ultra-Low Emissions performance and class-leading fuel efficiency.

Finally, the SUT Concept brings a whole new look and style to the truck segment. With a fully integrated bed and cab, strong but agile stance and next-generation styling, the SUT communicates a sense of something entirely new and uniquely Honda.

It's a new look and a new direction for the truck market and, most importantly, it's a Honda -- in every sense of the word.

That means innovative and thoughtful design, superior ergonomics, world-class durability, quality and reliability and always fun-to-drive. All things that we're confident will appeal to a new generation of truck buyers looking for something a little different than your typical truck.

We look forward to coming back next year to give you the first look at the production version.

For now, though, I'd like to invite you to come up and take a closer look at the Honda Sport Utility Truck.

Executive Remarks: Remarks by Dick Colliver - 2004 Detroit Auto Show

Sun, 04 Jan 2004 10:40:17 -0800

Good afternoon and thank you for coming to the Honda press conference.

It's been a truly remarkable year for American Honda.

Although it won't be official until tomorrow, our preliminary results show that American Honda and both the Honda and Acura divisions have set new sales records for 2003.

For the Honda Division, sales will well exceed the 1-million mark for the third straight year. In fact, 2003 marks our eighth consecutive year of record sales for Honda. With class-leading vehicles like the Accord, Civic, Pilot and Odyssey and breakthrough new models like our Element, we intend to extend that streak into 2004 and beyond.

2003 was also a banner year for our Acura Division. Powered by strong demand for it's two new sports sedans - the TSX and the TL - Acura sales will exceed 170,000 to set a new all-time record.

And we'll continue to grow the image of Acura by emphasizing the unique character of Acura and further strengthening the product line with enhanced performance and leading edge technologies.

Taken together, U.S. sales of Honda and Acura vehicles for 2003 will top 1.35 million units, a new all-time record for American Honda.

In fact, when the final numbers are tallied, American Honda will have crossed the finish line with the highest percentage increase and the largest market share gains of any major automaker in 2003.

But maybe even more important than the results themselves is the way we've gotten there.

By delivering popular products that people want to own and steering clear of conventional marketing tactics like customer cash, zero-percent financing and deeply discounted sales to fleets.

And our strategy continues to pay dividends in building real long-term value for our brands and for the people who purchase Honda and Acura products.

For instance, Automotive Lease Guide named Honda as the company with the highest retained value for its models across the entire industry in 2003.

This translates into higher resale values and reduced cost of ownership for our customers who understand that when they purchase a Honda, they're making a smart investment that will pay dividends in quality, driving enjoyment and value for years to come.

And they've rewarded us with their loyalty. According to Maritz loyalty data, 57 percent of Honda buyers returned to buy another Honda vehicle, the highest loyalty rating for any brand in the 2003 model year.

And as pleased as we are of these achievements, we're equally proud of our leadership in environmental and safety issues.

Every single Honda and Acura vehicle sold last year was a low-emissions vehicle while more than 50 percent delivered ultra-low or better emissions performance, more than any other automaker in America.

And we continue to excel in fuel efficiency. Honda maintains the highest Corporate Average Fuel Economy rating for any full-line manufacturer and leads in fuel efficiency in virtually every segment in which we compete, including our hybrid vehicles, which hold for of the top five slots on the EPA's 2004 fuel economy guide.

Looking a little further down the road, Honda is making significant advancements in fuel cell technology.

Last month marked the one-year anniversary for the delivery of the world first commercially certified fuel cell vehicle, the Honda FCX, to the City of Los Angeles. Today the city has five Honda fuel cell vehicles in regular daily use as part of its alternative fuel vehicle fleet.

On the safety front, Honda is also leading the industry with five of the fifteen models across the entire industry to earn the government's highest safety rating, including the Civic Coupe, the only affordable compact class vehicle to earn top safety ratings from the NHTSA.

Going forward, our "Safety for Everyone" commitment will take Honda safety leadership to the next level as we make features such as ABS and Side Curtain Airbags standard on practically every Honda and Acura vehicle, right down to our least expensive models.

Through these and other initiatives, we intend to build on our safety and environmental leadership as core attributes of all Honda and Acura products.

Of course, we can't really talk about our product initiatives without mentioning our North American manufacturing and R&D operations, which play a central role in our U.S. sales growth and in our ability to react quickly to changes in the market.

This year marks the 25th anniversary of automobile manufacturing for Honda in the North America. The official anniversary won't be until September, but we want to take this opportunity to recognize the efforts of our associates in Ohio, Canada and Alabama at meeting our customers' demand for Honda and Acura products in 2003.

With the addition of a second line at our plant in Alabama this spring, Honda plants in North America will have the capacity to produce more than 1.4 million cars and trucks annually, about as many vehicles as we expect to sell in the U.S. in 2004.

Working in close cooperation with our manufacturing group, the engineers of Honda R&D Americas have developed some of our most popular new models, including the Pilot, Element and the Acura MDX. In fact, nearly one-third of the vehicles sold in 2003 were designed and developed by Honda engineers in the U.S.

And today we have the opportunity to show you another example of how Honda's intense focus on the customer, in combination with our local manufacturing and R&D capabilities, is allowing us to identify new opportunities in the marketplace and react quickly with innovative, class-leading new vehicles that not only meet our customers' expectations, but give them something they may not even have imagined.

Today, we're pleased to give you the first glimpse of a groundbreaking new model that will take Honda in a whole new direction.

And I think you'll see that once again Honda is ahead of the curve.