Honda R and D: Mind Contol a Car

This is a neat idea, but I think all we'd have to do is take the tech that Honda has developed for ASIMO and incorporate it into a R2 unit like below.... no?

Posted on: January 31st, 2011 by Hannah Westfield

Everyone has had a time when they wished things could be achieved through thought alone. As children, many try to move objects and imagine what it would be like to have the power to do things through thought alone.

Well, incredibly this idea may not be far away. Honda, the Japanese car manufacturer, has been having talks this weekend with some top fashion designers. The idea is to design and produce a stylish and attractive ‘driving hat’, which should be able to allow the wearer to be able to undertake tasks while driving via just thinking about what needs to be done.

It sound like something from a futuristic science fiction film, where a UFO or weapons system is controlled purely by thought. However, this is a real prototype that will actually read its wearers brainwaves to do simple tasks for the driving. It will be able to undertake commands to turn on window wipers or headlights, open things like the boot, or other simple tasks.

The scanner and controller are so small that it can actually fit into the lining of a hat, just an ordinary hat, not even a specially designed one. Some have said that Honda are now looking to get high-end fashion designers and Hollywood stars involved in the project.

Up until recently, reading brain pattern has required probes and often hair removal. However, Honda’s design has managed to read brain waves through hair and via soft pads (no proing required). The idea of the hat is to be a fashionable driving aid, making life easier, while making the driver look good.

Source;
http://news.carrentals.co.uk/do-you-wish-you-could-think-something-to-be-done-34235900.html

Honda R and D: Mind Contol a Car

This is a neat idea, but I think all we'd have to do is take the tech that Honda has developed for ASIMO and incorporate it into a R2 unit like below.... no?

Posted on: January 31st, 2011 by Hannah Westfield

Everyone has had a time when they wished things could be achieved through thought alone. As children, many try to move objects and imagine what it would be like to have the power to do things through thought alone.

Well, incredibly this idea may not be far away. Honda, the Japanese car manufacturer, has been having talks this weekend with some top fashion designers. The idea is to design and produce a stylish and attractive ‘driving hat’, which should be able to allow the wearer to be able to undertake tasks while driving via just thinking about what needs to be done.

It sound like something from a futuristic science fiction film, where a UFO or weapons system is controlled purely by thought. However, this is a real prototype that will actually read its wearers brainwaves to do simple tasks for the driving. It will be able to undertake commands to turn on window wipers or headlights, open things like the boot, or other simple tasks.

The scanner and controller are so small that it can actually fit into the lining of a hat, just an ordinary hat, not even a specially designed one. Some have said that Honda are now looking to get high-end fashion designers and Hollywood stars involved in the project.

Up until recently, reading brain pattern has required probes and often hair removal. However, Honda’s design has managed to read brain waves through hair and via soft pads (no proing required). The idea of the hat is to be a fashionable driving aid, making life easier, while making the driver look good.

Source;
http://news.carrentals.co.uk/do-you-wish-you-could-think-something-to-be-done-34235900.html

The threat to Honda's mojo

Really good objective article....
Year of opportunity goes in reverse for Brand.

LOS ANGELES -- For Honda, 2010 was shaping up to be a year of tremendous opportunity.

With Toyota in the midst of the recall mess and two of the Detroit 3 climbing out of bankruptcy, Honda Division was in a unique position to increase sales and seize market share.

It didn't turn out that way.

Instead of gaining on its rivals, Honda's U.S. retail and overall share are down this year. Honda brand sales are up just 4 percent through November, in a market that's up 11 percent.

"Honda is not riding the wave" of the auto recovery, says Lincoln Merrihew, managing director of Compete Automotive, a market research firm.

Some of that has to do with timing. Two crucial products, the Civic and CR-V, are in the final year of their product cycle, and the Accord is 18 months from a redesign.

But other problems -- such as declining buyer consideration, an outdated inventory system and a sliding reputation among younger car shoppers -- suggest a brand that has lost some of its mojo.

Some missteps are easily reversible. For example, Honda held back production and inventory in February when the economy began to show signs of life, giving an opening to more aggressive manufacturers.

John Mendel, American Honda executive vice president, says a lull in Honda's product cadence arrived with the recession. Combine older products with Honda's aversion to discounting -- at a time when people were looking for deals -- and the division failed to keep pace with brands willing to dicker and sell volume to commercial fleets.

Share? Who cares?The view at Honda?
It's a short-term blip that doesn't matter.

At Honda, "no one talks about share," Mendel said in a recent interview. "Chasing share gets you into bad habits. We set a business plan to sell a certain number of cars. We don't set the plan based on an assumed share. We plan to grow 2 or 3 percent in volume in good times, and bad times. And there are times we'll give share back.

" Honda was wary of cranking up production too soon, and it paid a price for that cautiousness.

"We had the capacity. We saw a blip in the truck market, but we wanted to make sure it was sustainable, so we were six months late," Mendel said.

But the problems go deeper than that.

Honda dealers are having trouble providing shoppers with the vehicles they want. Honda's inventory and allocation system was designed when Honda had far fewer nameplates and trim levels, and the model proliferation has quickly outstripped the system's ability to let dealers order the exact vehicles they want.

The outdated system is a key reason for the slippage in Honda's dealer satisfaction scores on National Automobile Dealers Association surveys.

"Inventory has been a problem," said Ron Theis of Honda of Corvallis, in Corvallis, Ore., who is chairman of the dealer advisory board. "We could sell more if we had them."

Honda also is losing cross-shop battles, according to Compete Automotive, which measures buyer consideration of brands.

During the summer, Hyundai -- whose sales are only half those of the Honda brand -- nearly eclipsed Honda in the percentage of consumers that shopped their respective brands, according to Compete. And the company says the number of shoppers entering the new-car market is growing faster than the number of shoppers interested in Honda.

"Ford and Hyundai shoppers are cross-shopping Honda less," says Merrihew. "Even Toyota shoppers are shopping Honda less."

Loyalty -- but . . .

On the plus side, the repurchase-loyalty rate among Honda owners has been growing, from 42 percent in 2001 to about 56 percent this year, according to R.L. Polk data. The industry average is about 44 percent.

That loyalty usually comes in handy when new product arrives. But Honda's recent record on new-product launches has been spotty.

"Typically you get a spike with your own customers when you have new-product launches, and Honda has been pretty quiet," said Polk analyst Lonnie Miller. "With sales performance and repeat selling, your owners get rejuvenated with new products." For all its recall troubles, Toyota is trouncing Honda in two cases this year where competing models were launched at about the same time.

In the battle of dueling hybrids launched last spring, the Prius is outselling the Insight 8 to 1.

Honda's U.S. execs planned to sell 60,000 to 80,000 Insights a year; through November, only 19,325 were sold. That's probably why Honda introduced a base model Insight last week with less content that is $4,610 cheaper than the base Prius.

The Accord Crosstour hasn't fared much better against the Toyota Venza, which has a base price of about $1,500 less. Through November, the Venza has outsold the Crosstour 43,325 to 25,927. Data from auto research firm TrueCar show that both Crosstour inventories, and the discount needed to sell them, are larger than those for the Venza.

Honda's sporty new CR-Z hybrid coupe has fallen short as well. The CR-Z was launched with much fanfare in August, but with a modest 15,000-unit annual sales target. Still, Honda sold just 4,373 units in its first five months, with 3,000 cars sitting in inventory as of Nov. 1.

On the plus side of the launch ledger, the recently redesigned Odyssey minivan introduced in September is off to a strong start.

Why have the launches been letdowns?

"Lowest-common-denominator styling," says Jesse Toprak, a TrueCar vice president.

He says consumer clinics and word of mouth show that an increasing number of shoppers feel Honda has lost its way.

"The growing Gen Y demographic is more discriminating with their taste," he said. "Honda has become a safe purchase and developed a boring-car image, especially in Los Angeles and Florida, where opinions are formed for the rest of the nation."

And while the Venza is marketed to 60-somethings, "the Crosstour isn't being marketed at all, and it's expensive as heck," says Tracey Schneiter, vice president of financial analysis and forecasting for consultancy IRN Inc. in Grand Rapids, Mich.

Schneiter says that the Crosstour, which tops out above $37,000, is an example that shows Honda doesn't understand the proper model mix and features for its targeted consumer.

Losing APEAL

Art Wright, a Honda and Hyundai dealer in Lehigh Valley, Pa., says marketing has never been Honda's strong suit. And with tougher competition from Hyundai and Ford, Wright says it is no longer just a matter of waiting for customers to show up for their next new Honda.

"We've always been a product-oriented company," he says. "But right now the market is value-oriented, and you have to have the right marketing to go along with it."

In 2007, Honda reported its 11th straight year of record sales. It also grabbed four awards out of 19 categories -- the most of any brand -- in J.D. Power's APEAL survey, which measures how gratifying a car is to own.

From being among the leaders of mass-market brands in 2007, Honda's APEAL scores have fallen to below-average each year since.

Honda executives and some dealers see a much brighter 2011. They expect an economic recovery to coincide with a new Civic and CR-V due in the next six months and a redesigned Accord for mid-2012.

Says Mendel: "When the latest survey was done, the majority of our volume was old-model product. We were still on our old Odyssey and Civic, an Accord just prior to model change, and no CR-Z. We're going to stand tall on APEAL next time around."

Mendel is focusing on the early success of the redesigned Odyssey minivan, instead of niche products like the Crosstour and CR-Z. Sales of the new minivan are up nearly 50 percent over last year's sales of the old model.

Honda appears to be catching up since it cranked up North American truck production in August. Recent sales of the Odyssey, Pilot and CR-V all have been stronger.

Honda also is getting heavier into the incentive game, with an all-time high level of consumer incentive spending, though still well below the industry average. In the fourth quarter, Honda also unveiled cash-per-car dealer incentives ranging from $500 to $2,500 on the Civic and Accord, aiming for a 16 percent volume boost.

The Civic hit the target in November, but Accord sales were up just 10 percent.

Inventory snarls

Dealers say they could hit sales targets if Honda would fix its inventory and allocation system. The system, called MOVE (for market-oriented vehicle environment) was rolled out in 2001. Honda has promised an update in 12 to 18 months.

Oregon dealer Theis, a 25-year Honda veteran, said increasingly complicated model proliferation has taxed the current MOVE system. It's about more than just days' supply on a dealer's lot going toward turn-and-earn; it determines what vehicles can be ordered at a particular time.

Large and small dealers agree that Honda's inventory, allocation and manufacturing systems are not properly aligned, requiring a combination of mathematics and luck to get the right cars in stock.

The new Odyssey is an example of what frustrates dealers. With pricey options such as rear-seat video, power tailgate and leather seats, the new van has many more trim levels and features. Dealers believe they are better judges of local tastes than are factory reps.

"Right now we can choose within certain build constraints each month, but that can still be reconfigured by the factory," said Theis. "Dealers say if they could get the cars they want, and get more local control, they could grow."

The new allocation system "will provide dealers with an intuitive, more localized and market-focused way of managing their inventories," said Dennis Manns, vice president of sales and logistics planning.

The current inventory system is one reason dealer satisfaction scores, as measured by NADA, have fallen. Mendel says he takes the NADA survey seriously, but still brushes off the complaints as being closely linked to dealer profits.

"The NADA score has correlated to dealer profits for time immemorial," he said. "Honda and Toyota have been at the top forever, so relatively speaking, if I were a Ford or Hyundai dealer, I would be ecstatic.

"But I know of no Honda dealer who would swap a Hyundai dealer for their store straight up."

Good and bad news
PRO
• Odyssey starting well
• Civic, CR-V coming in 2011
• Low inventories
• Strong retention

CON
• Lackluster launches
• Staid styling
• Obsolete allocation system
• Fewer cross-shoppers.

Source;
http://www.autonews.com/apps/pbcs.dll/article?AID=/20101206/RETAIL03/312069954/1178

The threat to Honda's mojo

Really good objective article....
Year of opportunity goes in reverse for Brand.

LOS ANGELES -- For Honda, 2010 was shaping up to be a year of tremendous opportunity.

With Toyota in the midst of the recall mess and two of the Detroit 3 climbing out of bankruptcy, Honda Division was in a unique position to increase sales and seize market share.

It didn't turn out that way.

Instead of gaining on its rivals, Honda's U.S. retail and overall share are down this year. Honda brand sales are up just 4 percent through November, in a market that's up 11 percent.

"Honda is not riding the wave" of the auto recovery, says Lincoln Merrihew, managing director of Compete Automotive, a market research firm.

Some of that has to do with timing. Two crucial products, the Civic and CR-V, are in the final year of their product cycle, and the Accord is 18 months from a redesign.

But other problems -- such as declining buyer consideration, an outdated inventory system and a sliding reputation among younger car shoppers -- suggest a brand that has lost some of its mojo.

Some missteps are easily reversible. For example, Honda held back production and inventory in February when the economy began to show signs of life, giving an opening to more aggressive manufacturers.

John Mendel, American Honda executive vice president, says a lull in Honda's product cadence arrived with the recession. Combine older products with Honda's aversion to discounting -- at a time when people were looking for deals -- and the division failed to keep pace with brands willing to dicker and sell volume to commercial fleets.

Share? Who cares?The view at Honda?
It's a short-term blip that doesn't matter.

At Honda, "no one talks about share," Mendel said in a recent interview. "Chasing share gets you into bad habits. We set a business plan to sell a certain number of cars. We don't set the plan based on an assumed share. We plan to grow 2 or 3 percent in volume in good times, and bad times. And there are times we'll give share back.

" Honda was wary of cranking up production too soon, and it paid a price for that cautiousness.

"We had the capacity. We saw a blip in the truck market, but we wanted to make sure it was sustainable, so we were six months late," Mendel said.

But the problems go deeper than that.

Honda dealers are having trouble providing shoppers with the vehicles they want. Honda's inventory and allocation system was designed when Honda had far fewer nameplates and trim levels, and the model proliferation has quickly outstripped the system's ability to let dealers order the exact vehicles they want.

The outdated system is a key reason for the slippage in Honda's dealer satisfaction scores on National Automobile Dealers Association surveys.

"Inventory has been a problem," said Ron Theis of Honda of Corvallis, in Corvallis, Ore., who is chairman of the dealer advisory board. "We could sell more if we had them."

Honda also is losing cross-shop battles, according to Compete Automotive, which measures buyer consideration of brands.

During the summer, Hyundai -- whose sales are only half those of the Honda brand -- nearly eclipsed Honda in the percentage of consumers that shopped their respective brands, according to Compete. And the company says the number of shoppers entering the new-car market is growing faster than the number of shoppers interested in Honda.

"Ford and Hyundai shoppers are cross-shopping Honda less," says Merrihew. "Even Toyota shoppers are shopping Honda less."

Loyalty -- but . . .

On the plus side, the repurchase-loyalty rate among Honda owners has been growing, from 42 percent in 2001 to about 56 percent this year, according to R.L. Polk data. The industry average is about 44 percent.

That loyalty usually comes in handy when new product arrives. But Honda's recent record on new-product launches has been spotty.

"Typically you get a spike with your own customers when you have new-product launches, and Honda has been pretty quiet," said Polk analyst Lonnie Miller. "With sales performance and repeat selling, your owners get rejuvenated with new products." For all its recall troubles, Toyota is trouncing Honda in two cases this year where competing models were launched at about the same time.

In the battle of dueling hybrids launched last spring, the Prius is outselling the Insight 8 to 1.

Honda's U.S. execs planned to sell 60,000 to 80,000 Insights a year; through November, only 19,325 were sold. That's probably why Honda introduced a base model Insight last week with less content that is $4,610 cheaper than the base Prius.

The Accord Crosstour hasn't fared much better against the Toyota Venza, which has a base price of about $1,500 less. Through November, the Venza has outsold the Crosstour 43,325 to 25,927. Data from auto research firm TrueCar show that both Crosstour inventories, and the discount needed to sell them, are larger than those for the Venza.

Honda's sporty new CR-Z hybrid coupe has fallen short as well. The CR-Z was launched with much fanfare in August, but with a modest 15,000-unit annual sales target. Still, Honda sold just 4,373 units in its first five months, with 3,000 cars sitting in inventory as of Nov. 1.

On the plus side of the launch ledger, the recently redesigned Odyssey minivan introduced in September is off to a strong start.

Why have the launches been letdowns?

"Lowest-common-denominator styling," says Jesse Toprak, a TrueCar vice president.

He says consumer clinics and word of mouth show that an increasing number of shoppers feel Honda has lost its way.

"The growing Gen Y demographic is more discriminating with their taste," he said. "Honda has become a safe purchase and developed a boring-car image, especially in Los Angeles and Florida, where opinions are formed for the rest of the nation."

And while the Venza is marketed to 60-somethings, "the Crosstour isn't being marketed at all, and it's expensive as heck," says Tracey Schneiter, vice president of financial analysis and forecasting for consultancy IRN Inc. in Grand Rapids, Mich.

Schneiter says that the Crosstour, which tops out above $37,000, is an example that shows Honda doesn't understand the proper model mix and features for its targeted consumer.

Losing APEAL

Art Wright, a Honda and Hyundai dealer in Lehigh Valley, Pa., says marketing has never been Honda's strong suit. And with tougher competition from Hyundai and Ford, Wright says it is no longer just a matter of waiting for customers to show up for their next new Honda.

"We've always been a product-oriented company," he says. "But right now the market is value-oriented, and you have to have the right marketing to go along with it."

In 2007, Honda reported its 11th straight year of record sales. It also grabbed four awards out of 19 categories -- the most of any brand -- in J.D. Power's APEAL survey, which measures how gratifying a car is to own.

From being among the leaders of mass-market brands in 2007, Honda's APEAL scores have fallen to below-average each year since.

Honda executives and some dealers see a much brighter 2011. They expect an economic recovery to coincide with a new Civic and CR-V due in the next six months and a redesigned Accord for mid-2012.

Says Mendel: "When the latest survey was done, the majority of our volume was old-model product. We were still on our old Odyssey and Civic, an Accord just prior to model change, and no CR-Z. We're going to stand tall on APEAL next time around."

Mendel is focusing on the early success of the redesigned Odyssey minivan, instead of niche products like the Crosstour and CR-Z. Sales of the new minivan are up nearly 50 percent over last year's sales of the old model.

Honda appears to be catching up since it cranked up North American truck production in August. Recent sales of the Odyssey, Pilot and CR-V all have been stronger.

Honda also is getting heavier into the incentive game, with an all-time high level of consumer incentive spending, though still well below the industry average. In the fourth quarter, Honda also unveiled cash-per-car dealer incentives ranging from $500 to $2,500 on the Civic and Accord, aiming for a 16 percent volume boost.

The Civic hit the target in November, but Accord sales were up just 10 percent.

Inventory snarls

Dealers say they could hit sales targets if Honda would fix its inventory and allocation system. The system, called MOVE (for market-oriented vehicle environment) was rolled out in 2001. Honda has promised an update in 12 to 18 months.

Oregon dealer Theis, a 25-year Honda veteran, said increasingly complicated model proliferation has taxed the current MOVE system. It's about more than just days' supply on a dealer's lot going toward turn-and-earn; it determines what vehicles can be ordered at a particular time.

Large and small dealers agree that Honda's inventory, allocation and manufacturing systems are not properly aligned, requiring a combination of mathematics and luck to get the right cars in stock.

The new Odyssey is an example of what frustrates dealers. With pricey options such as rear-seat video, power tailgate and leather seats, the new van has many more trim levels and features. Dealers believe they are better judges of local tastes than are factory reps.

"Right now we can choose within certain build constraints each month, but that can still be reconfigured by the factory," said Theis. "Dealers say if they could get the cars they want, and get more local control, they could grow."

The new allocation system "will provide dealers with an intuitive, more localized and market-focused way of managing their inventories," said Dennis Manns, vice president of sales and logistics planning.

The current inventory system is one reason dealer satisfaction scores, as measured by NADA, have fallen. Mendel says he takes the NADA survey seriously, but still brushes off the complaints as being closely linked to dealer profits.

"The NADA score has correlated to dealer profits for time immemorial," he said. "Honda and Toyota have been at the top forever, so relatively speaking, if I were a Ford or Hyundai dealer, I would be ecstatic.

"But I know of no Honda dealer who would swap a Hyundai dealer for their store straight up."

Good and bad news
PRO
• Odyssey starting well
• Civic, CR-V coming in 2011
• Low inventories
• Strong retention

CON
• Lackluster launches
• Staid styling
• Obsolete allocation system
• Fewer cross-shoppers.

Source;
http://www.autonews.com/apps/pbcs.dll/article?AID=/20101206/RETAIL03/312069954/1178

Honda stresses product, tech blitz to get back on track

Honda Motor Co. survived the global financial crisis better than most, avoiding the full-year losses seen on many balance sheets. But Honda's rebound has not been as sharp as most of the rest of the industry. American Honda's sales rose only 3 percent through September, compared with the 10 percent advance for the U.S. market as a whole. Its market share shrank to 10.6 percent, from 11.3 percent a year earlier.

But Honda Motor CEO Takanobu Ito says new products, led by the redesigned Odyssey minivan, will deliver above-average growth in 2011. A blitz of new technologies is also on tap for the next two years, including a hybrid system for mid-sized to large vehicles, an electric car and a small clean diesel drivetrain. Honda also will start overhauling gasoline engines and transmissions.

Ito, 57, spoke with Asia Editor Hans Greimel through an interpreter at Honda's headquarters in Tokyo about the latest technology drive, the positioning of the Acura brand and Ito's market outlook.

Honda's U.S. sales growth is slower than the industry average. Where will it be next year?

Our sales are slightly below our initial expectations. But for next year we will have help from the new Odyssey, an incredibly strong product [which launched this fall in the United States]. The biggest reason our sales are slightly behind is due to the good growth of Hyundai, especially the Sonata. To counter that, we have plans to make the Accord and Civic far more attractive. So for next year, we should be able to get sales growth above the market average.

Has the traditional rivalry between the Honda Accord and Toyota Camry turned into a three-horse race with the Hyundai Sonata?

It has become a competitor.

What models do you see delivering the biggest U.S. sales growth?

The segment that's showing relatively good growth is the light-truck category. And under those circumstances, we are introducing the highly competitive new Odyssey, for which I have high expectations.

The styling looks really sharp. And it comes equipped with a six-speed automatic transmission and our original cylinder deactivation system, which is a big contributor to fuel efficiency and has been further refined. So it combines good driving, good fuel efficiency and good looks. And this has all been developed in the United States by Americans for the American market. I'm very confident that with the Odyssey, we've come out with a good car at the right time.

What about small cars? Are Americans ready to buy them?

With overall demand in such severe shape, it has become difficult to forecast how acceptable the market finds small cars. But if you look from a long-term perspective, demand for small cars -- in our case, the Fit class -- will grow. But it may take some time.

Does that apply to hybrids as well? Sales have been sluggish this year.

Although American people talk about fuel economy, they are sensitive to the price of gasoline. They have the natural tendency to like something big and powerful. Therefore, my impression is that demand for technologies specializing in fuel economy, such as hybrid vehicles, would be impacted by the fuel price.

However, in the long run, we must reduce carbon dioxide, and we must increase the attractiveness of products, and hybrid technology has great potential here. Hybrid is a very good technology to make the vehicle more powerful and to increase fuel economy. I think it is important for us to continue refining our hybrid technologies patiently so that we can prepare even better products with more affordability.

What are you doing to make Honda's hybrids more attractive?

We developed a simple one-motor hybrid system called IMA. The key to the success of IMA is how simple it is, how low the cost can be and how it can be made a natural part of the vehicle's system. I want to grow this technology as the most efficient, in terms of return on investment, and a technology to improve fuel economy.

We are also developing a hybrid system for larger-size vehicles with a goal to make it contribute not only to fuel economy but to the attractiveness of the products. The concept for this hybrid is significantly different.

You are introducing the larger hybrid system in 2012. What percentage of your global sales volume will be hybrid vehicles by 2015?

Maybe around 10 percent by 2015. Even after the bigger hybrids, sales aren't going to grow exponentially. The conventional gasoline engine will remain the mainstream. The volume for large-sized vehicles is not so large to begin with, so applying hybrid there won't bring about major change. The small-sized IMA system will remain the contributing factor.

If you look to 2015, I don't think there will be that much of an impact from rising fuel prices or more stringent regulations. But by around 2020, the social situation surrounding the market may be different, and probably carbon dioxide regulations will be made even more stringent.
How big is a big hybrid in Honda's view?

A hybrid system suitable for the class of vehicle equipped with a V-6 engine is called large size.

Obviously, we will further advance the conventional V-6-equipped vehicles for more power and fuel efficiency. But by adding a hybrid model, we will add a more powerful and more fuel-efficient option.

Honda also plans to overhaul its gasoline engine and transmission lineup starting in 2012. What are the key improvements?

Our products must impress customers with great engines, and thus, that is how we are developing our vehicles. But we are not ready to unveil what we are doing. It is a fact that we are accelerating the development of hybrid technology, where we were slightly behind, because it is a must-have item for the next era. However, hybrid sales will probably be only 10 percent of sales by 2015. Therefore, there is no doubt that the advancement of the conventional engine is important for our business.

What are your plans for positioning the Acura brand?

We are having a lot of discussions about Acura and which way it should be going. And what we confirmed is that the brand direction should be smart premium, not top tier.

Among the technologies we have at Honda, we must apply those that symbolize our advanced performance technology and environmental technology. We call this "smart." We agreed that smart premium is what we should be targeting with Acura, not the upper-segment vehicles such as Lexus or Mercedes-Benz. We must apply advanced technologies which make our vehicle more fun to drive, achieve a more comfortable drive and high environmental performance.

How is the stronger yen affecting Honda, and what are you doing?

The best risk-hedging approach is to establish a business structure focused not only on the United States and Japan but also on utilizing other production sites worldwide, meaning the rest of Asia, China, South America and other areas. Build a system where all those production sites complement each other with some of their local specialty products and locally sold products.

When you think foreign exchange rates, you need to take into consideration the yuan vs. the yen, the yen vs. the dollar, the baht vs. the dollar and so on. Traditionally, we have been concerned mostly with the U.S. dollar vs. the yen. But the proportional weight of those transactions in our global sales volume is getting lower.

Does that mean you might be importing more vehicles or components to Japan?

We have no definitive plans to do that, but we have imported vehicles before. About 15 years ago, we imported the Accord wagon from the United States. This was not due to foreign exchange considerations. It was done more to complement local products.

None of our plants has recovered to full production since the Lehman Brothers collapse and global financial crisis. The U.S. plants are probably at around 80 percent of capacity. Japan is probably around 70 percent to 80 percent. The same applies to other production sites in Asia except for China, which is operating close to full capacity.

Since the financial crisis, none of the sites have been overwhelmed by demand in excess of their capacity. Depending on how the foreign exchange situation continues, it is possible that we could import cars into Japan. This is nothing new to us. We have done this in the past.

What adjustments do you see in your U.S. production footprint in the near term?

The foreign exchange situation has the potential to change very dramatically, when we least expect it. It is very difficult to deal with. Currently, both Japan and the United States have excess production capacity. So if the foreign currency situation continues like this, there is a possibility that there could be a gradual shift of production to the United States. But I have no intention to bring about any sudden, dramatic changes.

What may be possible, for example, is this: We now produce the Accord in Japan and export some to the United States and other countries. But perhaps the portion that is going to other countries may eventually be sourced from the United States. That's something we are thinking about. It would also be good for the United States.

What change would you most like to see in the U.S. dealer network?

We have a good, strong U.S. dealer network, so I'm not thinking of changing anything specifically for 2011, 2012. What's most important is finding out and taking in what U.S. customers really find attractive in products, be it affordability or other features. We need to reinforce that in the early stage and build that into our products to further strengthen our brand identity. That is our first priority.

Source;
http://reviews.cnet.com/8301-13746_7-20022088-48.html

Honda stresses product, tech blitz to get back on track

Honda Motor Co. survived the global financial crisis better than most, avoiding the full-year losses seen on many balance sheets. But Honda's rebound has not been as sharp as most of the rest of the industry. American Honda's sales rose only 3 percent through September, compared with the 10 percent advance for the U.S. market as a whole. Its market share shrank to 10.6 percent, from 11.3 percent a year earlier.

But Honda Motor CEO Takanobu Ito says new products, led by the redesigned Odyssey minivan, will deliver above-average growth in 2011. A blitz of new technologies is also on tap for the next two years, including a hybrid system for mid-sized to large vehicles, an electric car and a small clean diesel drivetrain. Honda also will start overhauling gasoline engines and transmissions.

Ito, 57, spoke with Asia Editor Hans Greimel through an interpreter at Honda's headquarters in Tokyo about the latest technology drive, the positioning of the Acura brand and Ito's market outlook.

Honda's U.S. sales growth is slower than the industry average. Where will it be next year?

Our sales are slightly below our initial expectations. But for next year we will have help from the new Odyssey, an incredibly strong product [which launched this fall in the United States]. The biggest reason our sales are slightly behind is due to the good growth of Hyundai, especially the Sonata. To counter that, we have plans to make the Accord and Civic far more attractive. So for next year, we should be able to get sales growth above the market average.

Has the traditional rivalry between the Honda Accord and Toyota Camry turned into a three-horse race with the Hyundai Sonata?

It has become a competitor.

What models do you see delivering the biggest U.S. sales growth?

The segment that's showing relatively good growth is the light-truck category. And under those circumstances, we are introducing the highly competitive new Odyssey, for which I have high expectations.

The styling looks really sharp. And it comes equipped with a six-speed automatic transmission and our original cylinder deactivation system, which is a big contributor to fuel efficiency and has been further refined. So it combines good driving, good fuel efficiency and good looks. And this has all been developed in the United States by Americans for the American market. I'm very confident that with the Odyssey, we've come out with a good car at the right time.

What about small cars? Are Americans ready to buy them?

With overall demand in such severe shape, it has become difficult to forecast how acceptable the market finds small cars. But if you look from a long-term perspective, demand for small cars -- in our case, the Fit class -- will grow. But it may take some time.

Does that apply to hybrids as well? Sales have been sluggish this year.

Although American people talk about fuel economy, they are sensitive to the price of gasoline. They have the natural tendency to like something big and powerful. Therefore, my impression is that demand for technologies specializing in fuel economy, such as hybrid vehicles, would be impacted by the fuel price.

However, in the long run, we must reduce carbon dioxide, and we must increase the attractiveness of products, and hybrid technology has great potential here. Hybrid is a very good technology to make the vehicle more powerful and to increase fuel economy. I think it is important for us to continue refining our hybrid technologies patiently so that we can prepare even better products with more affordability.

What are you doing to make Honda's hybrids more attractive?

We developed a simple one-motor hybrid system called IMA. The key to the success of IMA is how simple it is, how low the cost can be and how it can be made a natural part of the vehicle's system. I want to grow this technology as the most efficient, in terms of return on investment, and a technology to improve fuel economy.

We are also developing a hybrid system for larger-size vehicles with a goal to make it contribute not only to fuel economy but to the attractiveness of the products. The concept for this hybrid is significantly different.

You are introducing the larger hybrid system in 2012. What percentage of your global sales volume will be hybrid vehicles by 2015?

Maybe around 10 percent by 2015. Even after the bigger hybrids, sales aren't going to grow exponentially. The conventional gasoline engine will remain the mainstream. The volume for large-sized vehicles is not so large to begin with, so applying hybrid there won't bring about major change. The small-sized IMA system will remain the contributing factor.

If you look to 2015, I don't think there will be that much of an impact from rising fuel prices or more stringent regulations. But by around 2020, the social situation surrounding the market may be different, and probably carbon dioxide regulations will be made even more stringent.
How big is a big hybrid in Honda's view?

A hybrid system suitable for the class of vehicle equipped with a V-6 engine is called large size.

Obviously, we will further advance the conventional V-6-equipped vehicles for more power and fuel efficiency. But by adding a hybrid model, we will add a more powerful and more fuel-efficient option.

Honda also plans to overhaul its gasoline engine and transmission lineup starting in 2012. What are the key improvements?

Our products must impress customers with great engines, and thus, that is how we are developing our vehicles. But we are not ready to unveil what we are doing. It is a fact that we are accelerating the development of hybrid technology, where we were slightly behind, because it is a must-have item for the next era. However, hybrid sales will probably be only 10 percent of sales by 2015. Therefore, there is no doubt that the advancement of the conventional engine is important for our business.

What are your plans for positioning the Acura brand?

We are having a lot of discussions about Acura and which way it should be going. And what we confirmed is that the brand direction should be smart premium, not top tier.

Among the technologies we have at Honda, we must apply those that symbolize our advanced performance technology and environmental technology. We call this "smart." We agreed that smart premium is what we should be targeting with Acura, not the upper-segment vehicles such as Lexus or Mercedes-Benz. We must apply advanced technologies which make our vehicle more fun to drive, achieve a more comfortable drive and high environmental performance.

How is the stronger yen affecting Honda, and what are you doing?

The best risk-hedging approach is to establish a business structure focused not only on the United States and Japan but also on utilizing other production sites worldwide, meaning the rest of Asia, China, South America and other areas. Build a system where all those production sites complement each other with some of their local specialty products and locally sold products.

When you think foreign exchange rates, you need to take into consideration the yuan vs. the yen, the yen vs. the dollar, the baht vs. the dollar and so on. Traditionally, we have been concerned mostly with the U.S. dollar vs. the yen. But the proportional weight of those transactions in our global sales volume is getting lower.

Does that mean you might be importing more vehicles or components to Japan?

We have no definitive plans to do that, but we have imported vehicles before. About 15 years ago, we imported the Accord wagon from the United States. This was not due to foreign exchange considerations. It was done more to complement local products.

None of our plants has recovered to full production since the Lehman Brothers collapse and global financial crisis. The U.S. plants are probably at around 80 percent of capacity. Japan is probably around 70 percent to 80 percent. The same applies to other production sites in Asia except for China, which is operating close to full capacity.

Since the financial crisis, none of the sites have been overwhelmed by demand in excess of their capacity. Depending on how the foreign exchange situation continues, it is possible that we could import cars into Japan. This is nothing new to us. We have done this in the past.

What adjustments do you see in your U.S. production footprint in the near term?

The foreign exchange situation has the potential to change very dramatically, when we least expect it. It is very difficult to deal with. Currently, both Japan and the United States have excess production capacity. So if the foreign currency situation continues like this, there is a possibility that there could be a gradual shift of production to the United States. But I have no intention to bring about any sudden, dramatic changes.

What may be possible, for example, is this: We now produce the Accord in Japan and export some to the United States and other countries. But perhaps the portion that is going to other countries may eventually be sourced from the United States. That's something we are thinking about. It would also be good for the United States.

What change would you most like to see in the U.S. dealer network?

We have a good, strong U.S. dealer network, so I'm not thinking of changing anything specifically for 2011, 2012. What's most important is finding out and taking in what U.S. customers really find attractive in products, be it affordability or other features. We need to reinforce that in the early stage and build that into our products to further strengthen our brand identity. That is our first priority.

Source;
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