Honda says studying shift overseas to avoid yen effect

* Working under assumption of 80 yen to dollar over next 3 years

* Exports from Japan unsustainable at current dollar-yen rate -CFO

* Discussion of shifting output to continue until last minute -CFO

* Not optimistic that yen will weaken -CFO

* Honda move could put pressure on Toyota, Nissan (Adds details)

By Chang-Ran Kim, Asia autos correspondent



TOKYO, Aug 9 (Reuters) - Honda Motor Co is studying possible production bases overseas to replace export-bound car production in Japan that has been battered by a strong yen, a top executive said on Tuesday.

Japanese auto executives have repeatedly warned that the yen had strengthened beyond what domestic exporters could cope with, but Honda Chief Financial Officer Fumihiko Ike's comment was the first indication so far that any concrete steps are being considered to reduce output in Japan.

"We currently have a three-year plan under which we are assuming a rate of 80 yen to the dollar," Ike told a small group of reporters at Honda's headquarters in Tokyo.

"And under that assumption, the discussion to look for an alternative production base is inevitable."

Ike tempered his comments by stressing that jobs in Japan needed to be protected, and that the discussion would continue right up to the point when the board makes a formal decision, taking into account exchange rates at that time.

But he said he was not necessarily optimistic that the yen would weaken, and that Honda was bracing itself for further appreciation towards 70 yen to the dollar after Japan's solo intervention last week did little to stem the dollar's fall. The U.S. currency was fetching around 77.00 yen on Tuesday.

"Protecting Japanese manufacturing and building cars here is becoming more and more difficult," Ike said. "We can keep the technology here, but if we were to build cars in Japan, they may be good (quality) products but they would be too expensive. And an expensive product is not necessarily a good product."

EXPORT EXPOSURE

Among Japan's top automakers, third-ranked Honda is the least exposed to excessive domestic production, exporting just 30 percent of its Japan-made cars last year. Toyota Motor Corp exported 53 percent, while Nissan Motor Co shipped 59 percent.

All three automakers have a basic strategy of creating a natural hedge against currency swings by producing as many cars as they can where they are sold. But for smaller markets where demand is insufficient to build a factory, production has been concentrated in Japan.

"At these exchange rates we lose competitiveness on these exports, and that leads to a fall in sales, triggering a vicious cycle," Ike said. "And when that happens, the natural consequence is for that production (in Japan) to disappear."

Ike said Honda had already gone down that path with motorcycles, expanding production in India, Vietnam and Indonesia. Honda imports many motorcycles into Japan from Thailand and China.

If Honda takes a similar step with cars, it could put pressure on rivals Toyota and Nissan to do the same and lead to a hollowing out of Japanese manufacturing, one of the main drivers of the country's economy.

Toyota and Nissan have been more vocal than Honda about protecting domestic production, with Toyota pledging 3 million vehicles a year of output in Japan and Nissan pledging 1 million.

Nissan said this week it plans to boost its sales in the shrinking Japanese market to keep the 1 million annual production target as it shifts more export-bound output overseas.

"Car makers are trying hard to cut costs to absorb the currency impact, but there's a limit to the speed and scope of what they can achieve," said Credit Suisse auto analyst Issei Takahashi.

"Even if they build a lot in Japan, if they lose money by doing so they won't be able to protect jobs. I think it's inevitable that some production shifts overseas." (Editing by Edmund Klamann)

Source;

http://www.reuters.com/article/2011/08/09/honda-idUSL3E7J922O20110809

Honda says studying shift overseas to avoid yen effect

* Working under assumption of 80 yen to dollar over next 3 years

* Exports from Japan unsustainable at current dollar-yen rate -CFO

* Discussion of shifting output to continue until last minute -CFO

* Not optimistic that yen will weaken -CFO

* Honda move could put pressure on Toyota, Nissan (Adds details)

By Chang-Ran Kim, Asia autos correspondent



TOKYO, Aug 9 (Reuters) - Honda Motor Co is studying possible production bases overseas to replace export-bound car production in Japan that has been battered by a strong yen, a top executive said on Tuesday.

Japanese auto executives have repeatedly warned that the yen had strengthened beyond what domestic exporters could cope with, but Honda Chief Financial Officer Fumihiko Ike's comment was the first indication so far that any concrete steps are being considered to reduce output in Japan.

"We currently have a three-year plan under which we are assuming a rate of 80 yen to the dollar," Ike told a small group of reporters at Honda's headquarters in Tokyo.

"And under that assumption, the discussion to look for an alternative production base is inevitable."

Ike tempered his comments by stressing that jobs in Japan needed to be protected, and that the discussion would continue right up to the point when the board makes a formal decision, taking into account exchange rates at that time.

But he said he was not necessarily optimistic that the yen would weaken, and that Honda was bracing itself for further appreciation towards 70 yen to the dollar after Japan's solo intervention last week did little to stem the dollar's fall. The U.S. currency was fetching around 77.00 yen on Tuesday.

"Protecting Japanese manufacturing and building cars here is becoming more and more difficult," Ike said. "We can keep the technology here, but if we were to build cars in Japan, they may be good (quality) products but they would be too expensive. And an expensive product is not necessarily a good product."

EXPORT EXPOSURE

Among Japan's top automakers, third-ranked Honda is the least exposed to excessive domestic production, exporting just 30 percent of its Japan-made cars last year. Toyota Motor Corp exported 53 percent, while Nissan Motor Co shipped 59 percent.

All three automakers have a basic strategy of creating a natural hedge against currency swings by producing as many cars as they can where they are sold. But for smaller markets where demand is insufficient to build a factory, production has been concentrated in Japan.

"At these exchange rates we lose competitiveness on these exports, and that leads to a fall in sales, triggering a vicious cycle," Ike said. "And when that happens, the natural consequence is for that production (in Japan) to disappear."

Ike said Honda had already gone down that path with motorcycles, expanding production in India, Vietnam and Indonesia. Honda imports many motorcycles into Japan from Thailand and China.

If Honda takes a similar step with cars, it could put pressure on rivals Toyota and Nissan to do the same and lead to a hollowing out of Japanese manufacturing, one of the main drivers of the country's economy.

Toyota and Nissan have been more vocal than Honda about protecting domestic production, with Toyota pledging 3 million vehicles a year of output in Japan and Nissan pledging 1 million.

Nissan said this week it plans to boost its sales in the shrinking Japanese market to keep the 1 million annual production target as it shifts more export-bound output overseas.

"Car makers are trying hard to cut costs to absorb the currency impact, but there's a limit to the speed and scope of what they can achieve," said Credit Suisse auto analyst Issei Takahashi.

"Even if they build a lot in Japan, if they lose money by doing so they won't be able to protect jobs. I think it's inevitable that some production shifts overseas." (Editing by Edmund Klamann)

Source;

http://www.reuters.com/article/2011/08/09/honda-idUSL3E7J922O20110809

Honda's new Home Power Generation

The New Honda: Cars, Bikes and …. Home Power Generation

Posted by Stephen On Friday, July 15th, 2011

The idea of what they are calling “co-generation” doe not get as much publicity as the latest Honda bike or car launch, but on July 14th Honda’s Yamada made it clear that company leaders want to see electricity co-generation technology products become a third pillar for Honda’s business, on par with their car and bike retail divisions.

So the first thing you are probably wondering is, well, what on earth is this “co-generation” thing they are talking about anyway? Well, to put it in a nutshell, it refers to domestic electricity generation using a combination of a gas engine and solar panels. Interest has focused on this type of technology in the wake of the earthquake that left so many homes without power, as well as the on-going crisis at the Fukushima nuclear reactor and Prime Minister Kan’s recent call for a nuclear-free Japan. Analysts are expecting this market to boom.

Now, while it is true that Toyota also has other seemingly-unrelated businesses, such as home builder Toyota Home, within its corporate group, Toyota’s primary focus is quite clearly on producing automobiles. So for Honda to be considering such a radical change of corporate strategy as putting this new business on par with their automobile and bike businesses is a very bold move.

So why do it? From Honda’s point of view, this technology also neatly dovetails with their future plans for alternatively powered vehicles. After all, if fuel cells and batteries in EVs or plug-in hybrids require a power source. What better than if you could generate your own power at home for both your household appliances and your vehicles? And once a system is in place to sell power back to the grid, it will give businesses and private individuals a way of participating in the energy generation business and thus paying down the cost of their investment and their own power usage quicker.

Source;

http://integrityexports.com/2011/07/15/new-honda-cars-bikes-and-home-power-generation/

Honda's new Home Power Generation

The New Honda: Cars, Bikes and …. Home Power Generation

Posted by Stephen On Friday, July 15th, 2011

The idea of what they are calling “co-generation” doe not get as much publicity as the latest Honda bike or car launch, but on July 14th Honda’s Yamada made it clear that company leaders want to see electricity co-generation technology products become a third pillar for Honda’s business, on par with their car and bike retail divisions.

So the first thing you are probably wondering is, well, what on earth is this “co-generation” thing they are talking about anyway? Well, to put it in a nutshell, it refers to domestic electricity generation using a combination of a gas engine and solar panels. Interest has focused on this type of technology in the wake of the earthquake that left so many homes without power, as well as the on-going crisis at the Fukushima nuclear reactor and Prime Minister Kan’s recent call for a nuclear-free Japan. Analysts are expecting this market to boom.

Now, while it is true that Toyota also has other seemingly-unrelated businesses, such as home builder Toyota Home, within its corporate group, Toyota’s primary focus is quite clearly on producing automobiles. So for Honda to be considering such a radical change of corporate strategy as putting this new business on par with their automobile and bike businesses is a very bold move.

So why do it? From Honda’s point of view, this technology also neatly dovetails with their future plans for alternatively powered vehicles. After all, if fuel cells and batteries in EVs or plug-in hybrids require a power source. What better than if you could generate your own power at home for both your household appliances and your vehicles? And once a system is in place to sell power back to the grid, it will give businesses and private individuals a way of participating in the energy generation business and thus paying down the cost of their investment and their own power usage quicker.

Source;

http://integrityexports.com/2011/07/15/new-honda-cars-bikes-and-home-power-generation/

MotorTrend: First Drive: Honda Fit Shuttle Hybrid

Not for our market....yet?....
Super-Sized Honda Is a Better Fit for Families
July 21, 2011
By Peter Lyon
Photography by Holiday Auto Magazine

Like much of Japan's industry, Honda's operations were massively disrupted after the March earthquake and tsunami, and new model launches were delayed. The super-sized Fit's debut was knocked back three months, and production temporarily relocated from the earthquake-damaged Saitama plant near Tokyo to Honda's Suzuka plant some 250 miles to the west. Now that things are back on track, we had a chance to take the Shuttle for a spin.

Based on the current model Fit's platform, with its superb center tank layout and low, flat floor, the Fit Shuttle is basically a Fit with a bigger, heavier body. It also inherits the 1.3-liter hybrid and 1.5-liter gas engines. In Japan at least, all models come with Honda's continuously variable transmission.

Some 20 inches longer than the current Fit, roughly 0.6 inches taller, and 154 pounds heavier, the Fit Shuttle employs the bolder, more substantial-looking nose from the U.S.-spec Fit. As you'd expect, the new Shuttle offers more head and legroom, and significantly more luggage space. While the increased space is its main reason for existence, the new Shuttle also delivers a better interior with higher-quality materials and trim, especially in the area of dashboard plastics. Honda is targeting customers downsizing from sedans, but still looking for acceptable ride quality and better quality and comfort levels than most small minivans. On those points the Shuttle delivers.


It delivers on the road, too, thanks to its proven hybrid IMA 1.3-liter i-VTEC engine, which generates 88 hp at 5800 rpm and 88 lb-ft of torque at 4500, while the electric motor produces 13 hp. Surprisingly, Honda engineers have managed to achieve mpg numbers that should match or beat the U.S.-spec Insight's roughly 40/43 city/highway (the same as its smaller, lighter Fit brother) by employing strategic aerodynamic revisions and friction reduction measures. These modifications make the Shuttle feel adequate but not quick, with a 0-60 mph time in the 10-second range. One aspect that impressed was the Shuttle's newfound quietness. Specially developed pile carpet, including synthetic inserts into the wheel wells and underbody, has significantly lowered the amount of noise and vibration reaching the cabin. You can hardly hear the engine laboring when pushed, or the CVT revving high to get the car up to speed.

Since the Shuttle went on sale last month in Japan, some 80 percent of customers have opted for the hybrid, which makes a lot of sense considering the post-earthquake mood here and the desire to save energy after the ensuing power cuts. However, Honda also offers a 1.5-liter gasoline model that delivers 117 hp and 106 lb-ft. For those looking for a Fit that has the get-up-and-go to propel five adults and their luggage, we'd recommend gas-powered Shuttle. That's not to say the hybrid doesn't cut the mustard. It does -- just not as well. The 1.5 jumps from 0-60 mph in around 8.5 seconds and delivers strong torque from as low as 2000 rpm. This for us was the pick of the crop, and it still delivers roughly 30 mpg combined.


On the road, the Shuttle has the Fit's sporty feel and handy road manners, combined with a more stable level of ride comfort. Its steering response is not quite as direct as the base Fit, but it still delivers good weight and channels ample feedback to the driver. Our only real gripe with the car was with its air conditioner, which periodically turned the compressor off to save fuel, then blowed hot air whenever it flicked into fuel efficiency mode at idle.

One Honda source we talked with suggested the Shuttle is being considered for export by mid-2012, with the U.S. as a long shot. A more likely scenario, however, would be for Honda to wait until the next-generation Fit lineup rolls out in 3-4 years before deciding on any U.S.-market launch. "We cannot send a soon-to-be-obsolete Fit, even if it's a bigger, more practical car," the Honda official told us. Stay tuned.

Source;
http://www.motortrend.com/roadtests/hatchbacks/1107_honda_fit_shuttle_hybrid_firist_drive/index.html

MotorTrend: First Drive: Honda Fit Shuttle Hybrid

Not for our market....yet?....
Super-Sized Honda Is a Better Fit for Families
July 21, 2011
By Peter Lyon
Photography by Holiday Auto Magazine

Like much of Japan's industry, Honda's operations were massively disrupted after the March earthquake and tsunami, and new model launches were delayed. The super-sized Fit's debut was knocked back three months, and production temporarily relocated from the earthquake-damaged Saitama plant near Tokyo to Honda's Suzuka plant some 250 miles to the west. Now that things are back on track, we had a chance to take the Shuttle for a spin.

Based on the current model Fit's platform, with its superb center tank layout and low, flat floor, the Fit Shuttle is basically a Fit with a bigger, heavier body. It also inherits the 1.3-liter hybrid and 1.5-liter gas engines. In Japan at least, all models come with Honda's continuously variable transmission.

Some 20 inches longer than the current Fit, roughly 0.6 inches taller, and 154 pounds heavier, the Fit Shuttle employs the bolder, more substantial-looking nose from the U.S.-spec Fit. As you'd expect, the new Shuttle offers more head and legroom, and significantly more luggage space. While the increased space is its main reason for existence, the new Shuttle also delivers a better interior with higher-quality materials and trim, especially in the area of dashboard plastics. Honda is targeting customers downsizing from sedans, but still looking for acceptable ride quality and better quality and comfort levels than most small minivans. On those points the Shuttle delivers.


It delivers on the road, too, thanks to its proven hybrid IMA 1.3-liter i-VTEC engine, which generates 88 hp at 5800 rpm and 88 lb-ft of torque at 4500, while the electric motor produces 13 hp. Surprisingly, Honda engineers have managed to achieve mpg numbers that should match or beat the U.S.-spec Insight's roughly 40/43 city/highway (the same as its smaller, lighter Fit brother) by employing strategic aerodynamic revisions and friction reduction measures. These modifications make the Shuttle feel adequate but not quick, with a 0-60 mph time in the 10-second range. One aspect that impressed was the Shuttle's newfound quietness. Specially developed pile carpet, including synthetic inserts into the wheel wells and underbody, has significantly lowered the amount of noise and vibration reaching the cabin. You can hardly hear the engine laboring when pushed, or the CVT revving high to get the car up to speed.

Since the Shuttle went on sale last month in Japan, some 80 percent of customers have opted for the hybrid, which makes a lot of sense considering the post-earthquake mood here and the desire to save energy after the ensuing power cuts. However, Honda also offers a 1.5-liter gasoline model that delivers 117 hp and 106 lb-ft. For those looking for a Fit that has the get-up-and-go to propel five adults and their luggage, we'd recommend gas-powered Shuttle. That's not to say the hybrid doesn't cut the mustard. It does -- just not as well. The 1.5 jumps from 0-60 mph in around 8.5 seconds and delivers strong torque from as low as 2000 rpm. This for us was the pick of the crop, and it still delivers roughly 30 mpg combined.


On the road, the Shuttle has the Fit's sporty feel and handy road manners, combined with a more stable level of ride comfort. Its steering response is not quite as direct as the base Fit, but it still delivers good weight and channels ample feedback to the driver. Our only real gripe with the car was with its air conditioner, which periodically turned the compressor off to save fuel, then blowed hot air whenever it flicked into fuel efficiency mode at idle.

One Honda source we talked with suggested the Shuttle is being considered for export by mid-2012, with the U.S. as a long shot. A more likely scenario, however, would be for Honda to wait until the next-generation Fit lineup rolls out in 3-4 years before deciding on any U.S.-market launch. "We cannot send a soon-to-be-obsolete Fit, even if it's a bigger, more practical car," the Honda official told us. Stay tuned.

Source;
http://www.motortrend.com/roadtests/hatchbacks/1107_honda_fit_shuttle_hybrid_firist_drive/index.html

Honda: Operating profit forecast not conservative

TOKYO: Honda Motor Co's annual operating profit forecast is not conservative given yen strength and rising raw materials prices, the automaker's chief financial officer said on Tuesday.

"I don't think assuming 80 yen to the dollar is conservative at all," Fumihiko Ike told a small group of reporters. "The same goes for raw material prices," he said.

Japan's No.3 automaker this month forecast a worse-than-expected 65 per cent fall in annual operating profit to 200 billion yen ($2.49 billion) for the year to March 2012 and projected a 6 per cent drop in global car sales to 3.3 million vehicles.

Many analysts consider its guidance overly conservative.

Source;
http://economictimes.indiatimes.com/news/international-business/honda-operating-profit-forecast-not-conservative/articleshow/9021763.cms

Honda: Operating profit forecast not conservative

TOKYO: Honda Motor Co's annual operating profit forecast is not conservative given yen strength and rising raw materials prices, the automaker's chief financial officer said on Tuesday.

"I don't think assuming 80 yen to the dollar is conservative at all," Fumihiko Ike told a small group of reporters. "The same goes for raw material prices," he said.

Japan's No.3 automaker this month forecast a worse-than-expected 65 per cent fall in annual operating profit to 200 billion yen ($2.49 billion) for the year to March 2012 and projected a 6 per cent drop in global car sales to 3.3 million vehicles.

Many analysts consider its guidance overly conservative.

Source;
http://economictimes.indiatimes.com/news/international-business/honda-operating-profit-forecast-not-conservative/articleshow/9021763.cms

Honda rakes up 7,000 orders for Fit Shuttle, Fit Shuttle Hybrid

Earlier this week, Honda unveiled the new Fit Shuttle and Fit Shuttle Hybrid. The Honda Fit Shuttle and the Honda Fit Shuttle Hybrid are both offered in 2wD and 4WD with prices starting at at ¥1,610,000 for the Fit Shuttle and ¥1,810,000 for the Fit Shuttle Hybrid.

So far, Honda has raked up 7,000 orders for the new model with 90 percent of the pre-order sales coming in for the Honda Fit Shuttle Hybrid.

Will this encourage Honda to bring the Fit Shuttle lineup to the United States? It just might.

Refresher: The Honda Fit Shuttle is powered by a 1.5L i-VTEC gasoline unit allowing it to average an estimated fuel-economy of 44 mpg using Japan’s 10·15 testing mode. The Honda Fit Shuttle Hybrid is powered by a 1.3L i-VTEC engine mated to the company’s IMA (Integrated Motor Assist) hybrid system. It returns an estimated fuel-economy of 59 mpg.

Source;
http://www.egmcartech.com/2011/06/18/honda-rakes-up-7000-orders-for-fit-shuttle-fit-shuttle-hybrid/

Honda rakes up 7,000 orders for Fit Shuttle, Fit Shuttle Hybrid

Earlier this week, Honda unveiled the new Fit Shuttle and Fit Shuttle Hybrid. The Honda Fit Shuttle and the Honda Fit Shuttle Hybrid are both offered in 2wD and 4WD with prices starting at at ¥1,610,000 for the Fit Shuttle and ¥1,810,000 for the Fit Shuttle Hybrid.

So far, Honda has raked up 7,000 orders for the new model with 90 percent of the pre-order sales coming in for the Honda Fit Shuttle Hybrid.

Will this encourage Honda to bring the Fit Shuttle lineup to the United States? It just might.

Refresher: The Honda Fit Shuttle is powered by a 1.5L i-VTEC gasoline unit allowing it to average an estimated fuel-economy of 44 mpg using Japan’s 10·15 testing mode. The Honda Fit Shuttle Hybrid is powered by a 1.3L i-VTEC engine mated to the company’s IMA (Integrated Motor Assist) hybrid system. It returns an estimated fuel-economy of 59 mpg.

Source;
http://www.egmcartech.com/2011/06/18/honda-rakes-up-7000-orders-for-fit-shuttle-fit-shuttle-hybrid/

2012 Honda FIT Shuttle Late Honda car debut turns into hot event

Not for us in North America.... yet....
Honda headquarters is sweltering, executives are without ties and reporters are fanning themselves in a scene illustrative of the nation's struggle to conserve electricity since March 11, when the massive earthquake and tsunami sent the Fukushima No. 1 nuclear plant into meltdown.

The scene unfolded as Honda Motor Co. launched the Fit Shuttle station wagon, including hybrid versions, for the domestic market Thursday — three months later than planned — another sign of the disaster's widespread impact.

The quake and tsunami destroyed Honda's parts suppliers, dealers and design facility in the Tohoku region.

Still, President Takanobu Ito was relieved the company had come this far.

"It was a real tough three months for us," he told reporters, wearing a casual beige jacket and no tie instead of his usual dark suits.

Cool Biz, the annual practice of allowing less formal attire to be worn in the office during the summer, is finally being embraced in a big way in the name of saving power. Now dubbed Super Cool Biz, some employees are even being encouraged to wear Aloha shirts and shorts.

Although no Honda executives were seen in shorts and their shirts were relatively staid, the nuclear crisis hung like a cloud over the event.

Tokyo-based Honda's invitation to the product launch — one of the first since March 11 — had warned that thermostats will be set at 28 degrees and that executives would be dressed in Cool Biz attire.

In addition to the Fukushima No. 1 crisis, which is expected to take years to resolve, another power plant was shut down months later over safety fears, causing the government to pressure companies and consumers to cut back on power use.

Automakers, a pillar of the economy, are under great pressure to cut power use 15 percent.
Autoworkers are producing cars on weekends and will instead take Thursdays and Fridays off for the next three months starting in July to reduce the load on power companies and avoid blackouts during peak demand periods.

Honda has said vehicle production in Japan will return to predisaster levels by the end of this month, and global production in August or September.

All orders for the Fit Shuttle will be delivered in two months' time, said Sho Minekawa, the executive in charge of Japan sales. There are no plans to offer the model overseas so far.

"We are finally able to introduce this product," he said. "We apologize to all those who have been waiting."

The Fit Shuttle, which comes as a hybrid (starting at ¥1.81 million) and with a gasoline engine (starting at ¥1.61 million), delivers the same mileage as the smaller Fit hatchback, according to Honda.

The hybrid version delivers 30 km per liter, or about 70 mpg, under Japanese test conditions, it said.

Honda is expecting its profit for the fiscal year through next March to plunge 63.5 percent to ¥195 billion from the previous year because of parts shortages and other disaster woes.

The maker of the Civic sedan and Odyssey minivan was battered by the cost of fixing damaged property and equipment, higher raw material costs, the strong yen and research expenses related to future products, such as environmental technology. Honda's global vehicle sales for the current fiscal year are projected to drop 6 percent on year to 3.3 million vehicles.

Honda to hire 1,000 temps
Kyodo
Honda Motor Co. will hire about 1,000 term employees at domestic plants, including in Saitama and Mie prefectures, during the second half of fiscal 2011 to cope with increased production expected from October to March, company sources said Thursday.

Honda is taking the measure because production is recovering from the March 11 catastrophe more quickly than anticipated and is expected to return to near normal by late June, they said.

The automaker will therefore withdraw its earlier plan set in April to gradually reduce the approximately 600 term employees at the plant in Saitama to zero by the end of September.

Honda will renew contracts of term employees if they want to do so, even for those whose employment contracts have already expired, they said.

Source;
http://search.japantimes.co.jp/cgi-bin/nb20110617a1.html

2012 Honda FIT Shuttle Late Honda car debut turns into hot event

Not for us in North America.... yet....
Honda headquarters is sweltering, executives are without ties and reporters are fanning themselves in a scene illustrative of the nation's struggle to conserve electricity since March 11, when the massive earthquake and tsunami sent the Fukushima No. 1 nuclear plant into meltdown.

The scene unfolded as Honda Motor Co. launched the Fit Shuttle station wagon, including hybrid versions, for the domestic market Thursday — three months later than planned — another sign of the disaster's widespread impact.

The quake and tsunami destroyed Honda's parts suppliers, dealers and design facility in the Tohoku region.

Still, President Takanobu Ito was relieved the company had come this far.

"It was a real tough three months for us," he told reporters, wearing a casual beige jacket and no tie instead of his usual dark suits.

Cool Biz, the annual practice of allowing less formal attire to be worn in the office during the summer, is finally being embraced in a big way in the name of saving power. Now dubbed Super Cool Biz, some employees are even being encouraged to wear Aloha shirts and shorts.

Although no Honda executives were seen in shorts and their shirts were relatively staid, the nuclear crisis hung like a cloud over the event.

Tokyo-based Honda's invitation to the product launch — one of the first since March 11 — had warned that thermostats will be set at 28 degrees and that executives would be dressed in Cool Biz attire.

In addition to the Fukushima No. 1 crisis, which is expected to take years to resolve, another power plant was shut down months later over safety fears, causing the government to pressure companies and consumers to cut back on power use.

Automakers, a pillar of the economy, are under great pressure to cut power use 15 percent.
Autoworkers are producing cars on weekends and will instead take Thursdays and Fridays off for the next three months starting in July to reduce the load on power companies and avoid blackouts during peak demand periods.

Honda has said vehicle production in Japan will return to predisaster levels by the end of this month, and global production in August or September.

All orders for the Fit Shuttle will be delivered in two months' time, said Sho Minekawa, the executive in charge of Japan sales. There are no plans to offer the model overseas so far.

"We are finally able to introduce this product," he said. "We apologize to all those who have been waiting."

The Fit Shuttle, which comes as a hybrid (starting at ¥1.81 million) and with a gasoline engine (starting at ¥1.61 million), delivers the same mileage as the smaller Fit hatchback, according to Honda.

The hybrid version delivers 30 km per liter, or about 70 mpg, under Japanese test conditions, it said.

Honda is expecting its profit for the fiscal year through next March to plunge 63.5 percent to ¥195 billion from the previous year because of parts shortages and other disaster woes.

The maker of the Civic sedan and Odyssey minivan was battered by the cost of fixing damaged property and equipment, higher raw material costs, the strong yen and research expenses related to future products, such as environmental technology. Honda's global vehicle sales for the current fiscal year are projected to drop 6 percent on year to 3.3 million vehicles.

Honda to hire 1,000 temps
Kyodo
Honda Motor Co. will hire about 1,000 term employees at domestic plants, including in Saitama and Mie prefectures, during the second half of fiscal 2011 to cope with increased production expected from October to March, company sources said Thursday.

Honda is taking the measure because production is recovering from the March 11 catastrophe more quickly than anticipated and is expected to return to near normal by late June, they said.

The automaker will therefore withdraw its earlier plan set in April to gradually reduce the approximately 600 term employees at the plant in Saitama to zero by the end of September.

Honda will renew contracts of term employees if they want to do so, even for those whose employment contracts have already expired, they said.

Source;
http://search.japantimes.co.jp/cgi-bin/nb20110617a1.html

UPDATE: Honda Pres: Yen Remains Big Concern As Seeks To Restore Ops

By Yoshio Takahashi
Of DOW JONES NEWSWIRES

TOKYO (Dow Jones)--Honda Motor Co.'s (7267.TO) chief executive voiced concern about the yen's strength Thursday, noting its current position could offset the Japanese auto maker's attempt to recover after the March 11 earthquake and tsunami.

"My feeling is that (the business) situation is tough, especially foreign exchange. I hope that the (unfavorable yen level) will change," Takanobu Ito, president and chief executive of the car maker, said at a press conference for the launch of the auto maker's Fit Shuttle hybrid wagon.

Earlier this week Honda said that it expects its net profit for the current fiscal year through March to drop 63% on the back of the yen's strength and reduced output resulting from a parts shortage in the wake of the disaster.

Honda expects a scarcity of some key parts from suppliers stricken by the disaster to reduce its global sales by 6% to 3.3 million vehicles this fiscal year.

In a bid to push sales during harsh times, Honda rolled out the Fit Shuttle hybrid wagon in Japan three month behind the initial schedule due to the earthquake.

The new hybrid with a starting price of Y1.81 million was developed based on its Fit company hybrid and can run 30 kilometers on a liter of gasoline.

This price is lower than the lowest price of the Prius Alpha minivan hybrid launched last month by Toyota of Y2.35 million.

Toyota's new hybrid was also introduced in Japan with a delay due to the disaster.

Honda said it has received orders for 7,000 Fit Shuttle hybrids, well above the model's monthly sales target of 4,000 units.

But Toyota sees much stronger demand for its newest hybrid, saying Tuesday that it has received 52,000 orders in Japan for the new minivan version of the Prius hybrid one month after its launch. The number far outstrips the company's 3,000 monthly sales target for the Prius Alpha.

Source;
http://online.wsj.com/article/BT-CO-20110616-702125.html

UPDATE: Honda Pres: Yen Remains Big Concern As Seeks To Restore Ops

By Yoshio Takahashi
Of DOW JONES NEWSWIRES

TOKYO (Dow Jones)--Honda Motor Co.'s (7267.TO) chief executive voiced concern about the yen's strength Thursday, noting its current position could offset the Japanese auto maker's attempt to recover after the March 11 earthquake and tsunami.

"My feeling is that (the business) situation is tough, especially foreign exchange. I hope that the (unfavorable yen level) will change," Takanobu Ito, president and chief executive of the car maker, said at a press conference for the launch of the auto maker's Fit Shuttle hybrid wagon.

Earlier this week Honda said that it expects its net profit for the current fiscal year through March to drop 63% on the back of the yen's strength and reduced output resulting from a parts shortage in the wake of the disaster.

Honda expects a scarcity of some key parts from suppliers stricken by the disaster to reduce its global sales by 6% to 3.3 million vehicles this fiscal year.

In a bid to push sales during harsh times, Honda rolled out the Fit Shuttle hybrid wagon in Japan three month behind the initial schedule due to the earthquake.

The new hybrid with a starting price of Y1.81 million was developed based on its Fit company hybrid and can run 30 kilometers on a liter of gasoline.

This price is lower than the lowest price of the Prius Alpha minivan hybrid launched last month by Toyota of Y2.35 million.

Toyota's new hybrid was also introduced in Japan with a delay due to the disaster.

Honda said it has received orders for 7,000 Fit Shuttle hybrids, well above the model's monthly sales target of 4,000 units.

But Toyota sees much stronger demand for its newest hybrid, saying Tuesday that it has received 52,000 orders in Japan for the new minivan version of the Prius hybrid one month after its launch. The number far outstrips the company's 3,000 monthly sales target for the Prius Alpha.

Source;
http://online.wsj.com/article/BT-CO-20110616-702125.html

Post-quake Honda says it now has lots of Fits, Insights for dealers

Honda offered a terrific sign this week that it is finally getting back on its feet in the U.S. after the March earthquake and tsunami that drastically slashed production.

It is now telling dealers that they can resume ordering two of the most in-demand models -- the small Honda Fit and the hybrid Insight, Automotive News reports.

The two models, both made in Japan, have been among the most in-demand as gas rose to an average of nearly $4 a gallon. The Fit is the smallest car that Honda sells in the U.S. and comes recommended by Consumer Reports. The Insight is the brand's underrated hybrid, a competitor to Toyota's Prius.

"Honda's manufacturing operations in Japan are returning to nearly normalized levels by the end of summer," said John Mendel, executive vice president of Honda's U.S. sales operation in a memo to Honda dealers. Adding back Fit and Insight "represents a major improvement from the recovery timetable we provided you last month."

Honda stopped orders on the models after the earthquake. Honda didn't incur major damange to its factories in Japan, but it has been badly impacted by the shortage of parts that has hampered other automakers, including those in the U.S.

In fact, Mendel is downright bullish. Noting that other models like the Pilot SUV, Odyssey minivan and CR-V small crossover are coming back to normal production levels, he implored dealers, "it is imperative that you keep your foot on the sales pedal."

It won't be easy: Sales fell 22% in May compared with a year ago, the News notes.

Source;
http://content.usatoday.com/communities/driveon/post/2011/06/post-quake-honda-says-now-lots-of-fits-insights-for-dealers/1

Post-quake Honda says it now has lots of Fits, Insights for dealers

Honda offered a terrific sign this week that it is finally getting back on its feet in the U.S. after the March earthquake and tsunami that drastically slashed production.

It is now telling dealers that they can resume ordering two of the most in-demand models -- the small Honda Fit and the hybrid Insight, Automotive News reports.

The two models, both made in Japan, have been among the most in-demand as gas rose to an average of nearly $4 a gallon. The Fit is the smallest car that Honda sells in the U.S. and comes recommended by Consumer Reports. The Insight is the brand's underrated hybrid, a competitor to Toyota's Prius.

"Honda's manufacturing operations in Japan are returning to nearly normalized levels by the end of summer," said John Mendel, executive vice president of Honda's U.S. sales operation in a memo to Honda dealers. Adding back Fit and Insight "represents a major improvement from the recovery timetable we provided you last month."

Honda stopped orders on the models after the earthquake. Honda didn't incur major damange to its factories in Japan, but it has been badly impacted by the shortage of parts that has hampered other automakers, including those in the U.S.

In fact, Mendel is downright bullish. Noting that other models like the Pilot SUV, Odyssey minivan and CR-V small crossover are coming back to normal production levels, he implored dealers, "it is imperative that you keep your foot on the sales pedal."

It won't be easy: Sales fell 22% in May compared with a year ago, the News notes.

Source;
http://content.usatoday.com/communities/driveon/post/2011/06/post-quake-honda-says-now-lots-of-fits-insights-for-dealers/1

Honda plans to bring its Japanese assembly plants back to normal output by summer

Honda Motor Co. is seeking to recover from the Japan disaster months earlier than forecasted. It expects that its assembly plants in Japan will be able to resume normal production by summer. Spokesman Keitaro Yamamoto said Honda’s factories in Sayama and Suzuka factories, the car’s only assembly plants in Japan, are expected to get back to pre-earthquake production levels by August. Honda had previously announced that global production will be restored by the end of the year. Honda had been significantly affected by the March 11 earthquake and tsunami in Japan that had resulted to disruptions in the supply chain and to idled plants.

But it’s likely that the global operations will normalize earlier with the progress in the country’s recovery, according to Autonews. Honda anticipates that the r&d center’s engineers, who were out of work after the disaster struck, will go back to the facility by the middle of June. The earthquake claimed one death and led to several injuries when it caused the ceiling at Honda’s body design facility to crash down. Last March, Honda put a thousand of its r&d workers (about 10% of the center’s total workforce) to continue their work at its other buildings in the site or at its other facilities in Japan while repairs are ongoing.

Yamamoto said that suppliers are exceeding expectations and are restoring output earlier. That is why automakers are also able to resume normal production earlier too. Honda’s improved outlook was revealed only days after it said that U.S. production will go back to normal this August for its entire lineup except the recently redesigned Civic. Honda has announced that a second shift will be put up later in 2011 at its Civic plant in Indiana to help make up for the production losses.

Source;
http://www.4wheelsnews.com/honda-plans-to-bring-its-japanese-assembly-plants-back-to-normal-output-by/

Honda plans to bring its Japanese assembly plants back to normal output by summer

Honda Motor Co. is seeking to recover from the Japan disaster months earlier than forecasted. It expects that its assembly plants in Japan will be able to resume normal production by summer. Spokesman Keitaro Yamamoto said Honda’s factories in Sayama and Suzuka factories, the car’s only assembly plants in Japan, are expected to get back to pre-earthquake production levels by August. Honda had previously announced that global production will be restored by the end of the year. Honda had been significantly affected by the March 11 earthquake and tsunami in Japan that had resulted to disruptions in the supply chain and to idled plants.

But it’s likely that the global operations will normalize earlier with the progress in the country’s recovery, according to Autonews. Honda anticipates that the r&d center’s engineers, who were out of work after the disaster struck, will go back to the facility by the middle of June. The earthquake claimed one death and led to several injuries when it caused the ceiling at Honda’s body design facility to crash down. Last March, Honda put a thousand of its r&d workers (about 10% of the center’s total workforce) to continue their work at its other buildings in the site or at its other facilities in Japan while repairs are ongoing.

Yamamoto said that suppliers are exceeding expectations and are restoring output earlier. That is why automakers are also able to resume normal production earlier too. Honda’s improved outlook was revealed only days after it said that U.S. production will go back to normal this August for its entire lineup except the recently redesigned Civic. Honda has announced that a second shift will be put up later in 2011 at its Civic plant in Indiana to help make up for the production losses.

Source;
http://www.4wheelsnews.com/honda-plans-to-bring-its-japanese-assembly-plants-back-to-normal-output-by/

Honda to revive HR-V in 2014,To be upsize and slot below CR-V

Older news but news none the less.... not expecting this for the North American market....
The current Honda HR-V is small SUV at the size of Suzuki SX4.The fist car will arrive in 1998 and second generation was debute in 2007.

Unfortunately the car is not success and discontinued in 2010.

Dua to recent boom of small crossover, Honda is plan to revive the car in by August 2014.

Mag-x of Japan have photoshop the car.

Size of the new HR-V will slighly increase and will be upmarket to compet with the like of Nissan Qashqai and Mitsubishi ASX where its place between Compact and Sub compact SUV.

Size is speculate at 4350 mm Long X 1745 mm wide X 1640 mm high.

Under the hood will be 2.0 liter 4-cylinder petrol and 2.2 liter diesel is also on card for European market.

Autoten also received news that Honda is working on smaller 1.5 liter diesel engine to fit in Jazz/Fit.

We not sure if this power will under new HR-V hood but it have strong possibility.

Honda claims that this car will be UV-utility vehicle.

So,we have to wait and see what they are going to bring some new innovative or difference from conventional SUV.

Source;
http://autoten.com/2011/05/31/honda-to-revive-hr-v-in-2014to-be-upsize-and-slot-below-cr-v/

Honda to revive HR-V in 2014,To be upsize and slot below CR-V

Older news but news none the less.... not expecting this for the North American market....
The current Honda HR-V is small SUV at the size of Suzuki SX4.The fist car will arrive in 1998 and second generation was debute in 2007.

Unfortunately the car is not success and discontinued in 2010.

Dua to recent boom of small crossover, Honda is plan to revive the car in by August 2014.

Mag-x of Japan have photoshop the car.

Size of the new HR-V will slighly increase and will be upmarket to compet with the like of Nissan Qashqai and Mitsubishi ASX where its place between Compact and Sub compact SUV.

Size is speculate at 4350 mm Long X 1745 mm wide X 1640 mm high.

Under the hood will be 2.0 liter 4-cylinder petrol and 2.2 liter diesel is also on card for European market.

Autoten also received news that Honda is working on smaller 1.5 liter diesel engine to fit in Jazz/Fit.

We not sure if this power will under new HR-V hood but it have strong possibility.

Honda claims that this car will be UV-utility vehicle.

So,we have to wait and see what they are going to bring some new innovative or difference from conventional SUV.

Source;
http://autoten.com/2011/05/31/honda-to-revive-hr-v-in-2014to-be-upsize-and-slot-below-cr-v/