Honda Installs Wind Tunnel Amid $355 Million Ohio Plant Upgrades

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



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



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



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



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

Efficiency



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



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



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



Fuel-Economy Push

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

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



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



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



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



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



Wind Tunnel

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



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



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



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



‘Not Just a Big Fan’

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

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



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



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



Source;

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

Honda Installs Wind Tunnel Amid $355 Million Ohio Plant Upgrades

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



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



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



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



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

Efficiency



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



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



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



Fuel-Economy Push

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

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



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



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



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



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



Wind Tunnel

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



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



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



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



‘Not Just a Big Fan’

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

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



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



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



Source;

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

Honda Motor Assigned Patent

08/23/2011

By Targeted News Service



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



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



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



Written by Shabnam Sheikh; edited by Jaya Anand.



Source;

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

Honda Motor Assigned Patent

08/23/2011

By Targeted News Service



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



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



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



Written by Shabnam Sheikh; edited by Jaya Anand.



Source;

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

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

By Mark Rechtin, Crain News Service



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



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



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



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



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



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



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



New group

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



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



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



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



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



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



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



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

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



Fresh blood

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



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



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



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



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



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



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



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



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



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



Source;

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

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

By Mark Rechtin, Crain News Service



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



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



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



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



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



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



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



New group

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



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



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



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



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



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



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



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

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



Fresh blood

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



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



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



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



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



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



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



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



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



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



Source;

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

Honda gives back

by David Taylor of www.simcoe.com



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



Implications felt half a world away

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



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



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



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



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



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



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



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



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



Giving back

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



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



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



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



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



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



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



Positive turnaround

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



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



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



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



Source;

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

Honda gives back

by David Taylor of www.simcoe.com



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



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



Implications felt half a world away

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



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



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



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



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



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



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



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



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



Giving back

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



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



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



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



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



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



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



Positive turnaround

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



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



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



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



Source;

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

WSJ: Honda To Resume Full North American Auto Production In August

By Mike Ramsey
Of THE WALL STREET JOURNAL

DAYTON, Ohio (Dow Jones)--Honda Motor Co. (HMC, 7267.TO) will return its North American auto production to normal levels for all but one vehicle in August, faster than the company expected, the company said in a statement Thursday.

Honda has been running its plants at around 50% of their normal volume since April because of limited supplies of critical parts. Honda, Toyota Motor Corp. (TM, 7203.TO) and Nissan Motor Co. (NSANY, 7201.TO) have all limited their production this year because of the massive March 11 earthquake that damaged dozens of parts suppliers, particularly electronics makers.

Unfortunately for Honda, the lone car built in North America that won't return to full production in August is the redesigned Civic. Production of the vehicle will remain at 50% of projected volume because of limited supplies of parts and return to normal sometime in the fall, the company said. The Civic is one of Honda's best-selling models and the redesigned model was expected to help drive sales this year, reversing a market-share decline.

"The light at the end of the tunnel is glowing brighter for us, represented by this significant improvement in our production situation," said John Mendel, executive vice president of American Honda Motor Co., in the statement.

Honda, with more production in North America than Toyota or Nissan, has been the slowest to return its plants to higher volume. Nissan's U.S. production missed only a few days and Toyota is ramping back up most of its plants in North America next month.

Low inventories of key vehicles, combined with few incentives from Honda and maybe the perception that cars aren't available, are expected to drag down Honda's sales results in May. TrueCar.com, a consumer research and vehicle pricing website, predicts Honda's May sales will decline 26%, the most of any major manufacturer.

Honda's Mendel last week sent a letter to dealers to encourage then to push for sales harder and to say that supplies wouldn't run out because sales results were disappointing at that point in the month.

Source;
http://online.wsj.com/article/BT-CO-20110526-707691.html

WSJ: Honda To Resume Full North American Auto Production In August

By Mike Ramsey
Of THE WALL STREET JOURNAL

DAYTON, Ohio (Dow Jones)--Honda Motor Co. (HMC, 7267.TO) will return its North American auto production to normal levels for all but one vehicle in August, faster than the company expected, the company said in a statement Thursday.

Honda has been running its plants at around 50% of their normal volume since April because of limited supplies of critical parts. Honda, Toyota Motor Corp. (TM, 7203.TO) and Nissan Motor Co. (NSANY, 7201.TO) have all limited their production this year because of the massive March 11 earthquake that damaged dozens of parts suppliers, particularly electronics makers.

Unfortunately for Honda, the lone car built in North America that won't return to full production in August is the redesigned Civic. Production of the vehicle will remain at 50% of projected volume because of limited supplies of parts and return to normal sometime in the fall, the company said. The Civic is one of Honda's best-selling models and the redesigned model was expected to help drive sales this year, reversing a market-share decline.

"The light at the end of the tunnel is glowing brighter for us, represented by this significant improvement in our production situation," said John Mendel, executive vice president of American Honda Motor Co., in the statement.

Honda, with more production in North America than Toyota or Nissan, has been the slowest to return its plants to higher volume. Nissan's U.S. production missed only a few days and Toyota is ramping back up most of its plants in North America next month.

Low inventories of key vehicles, combined with few incentives from Honda and maybe the perception that cars aren't available, are expected to drag down Honda's sales results in May. TrueCar.com, a consumer research and vehicle pricing website, predicts Honda's May sales will decline 26%, the most of any major manufacturer.

Honda's Mendel last week sent a letter to dealers to encourage then to push for sales harder and to say that supplies wouldn't run out because sales results were disappointing at that point in the month.

Source;
http://online.wsj.com/article/BT-CO-20110526-707691.html

Honda Gives Assurances to U.S. Dealers

By MIKE RAMSEY
DETROIT—Honda Motor Co. told its U.S. dealers Friday that July vehicle deliveries would increase by 11% from June levels and accelerate in August as the auto maker ramps up production after the March 11 earthquake in Japan.

American Honda Executive Vice President John Mendel said in a memo that its sales continued to "run at a relatively soft pace" despite what the company considers decent inventory levels, albeit lower than year-earlier levels.

"Many of you have indicated that it is due in large part to concerns for inventory going forward," Mr. Mendel said.

Honda follows Nissan Motor Co. in efforts to encourage its dealers to continue driving deals to gain customers despite a murky outlook for vehicle inventories this summer. Both auto makers and Toyota Motor Corp. had to stop production in Japan for several weeks following the earthquake, and all continue to face shortages of electronic components, LCD screens and rubber.

U.S. sales for Honda rose 10% last month compared to 18% for the overall industry.

"It's interesting to note that although our total inventory is down versus May 2010, we have more CR-Vs, Pilots and Fits in dealer inventory now than we did a year ago," Mr. Mendel said.

"With this level of inventory, coupled with competitive incentives focused on vehicles with sufficient availability, you all need to continue to push hard on the sales front."

Last week, Nissan asked dealers to be more aggressive and go after Toyota and Honda, which it deemed vulnerable.

Source;
http://online.wsj.com/article/SB10001424052748704816604576335061787279604.html?mod=googlenews_wsj

Honda Gives Assurances to U.S. Dealers

By MIKE RAMSEY
DETROIT—Honda Motor Co. told its U.S. dealers Friday that July vehicle deliveries would increase by 11% from June levels and accelerate in August as the auto maker ramps up production after the March 11 earthquake in Japan.

American Honda Executive Vice President John Mendel said in a memo that its sales continued to "run at a relatively soft pace" despite what the company considers decent inventory levels, albeit lower than year-earlier levels.

"Many of you have indicated that it is due in large part to concerns for inventory going forward," Mr. Mendel said.

Honda follows Nissan Motor Co. in efforts to encourage its dealers to continue driving deals to gain customers despite a murky outlook for vehicle inventories this summer. Both auto makers and Toyota Motor Corp. had to stop production in Japan for several weeks following the earthquake, and all continue to face shortages of electronic components, LCD screens and rubber.

U.S. sales for Honda rose 10% last month compared to 18% for the overall industry.

"It's interesting to note that although our total inventory is down versus May 2010, we have more CR-Vs, Pilots and Fits in dealer inventory now than we did a year ago," Mr. Mendel said.

"With this level of inventory, coupled with competitive incentives focused on vehicles with sufficient availability, you all need to continue to push hard on the sales front."

Last week, Nissan asked dealers to be more aggressive and go after Toyota and Honda, which it deemed vulnerable.

Source;
http://online.wsj.com/article/SB10001424052748704816604576335061787279604.html?mod=googlenews_wsj

Honda says parts supply recovery picking up speed

May 17 (Reuters) - Honda Motor is seeing a speeding up in the recovery of parts supplies, which will be key to bringing forward its timing for a return to normal production after a March earthquake and tsunami in northeastern Japan disrupted supply chains, the automaker's chief financial officer said on Tuesday.

Honda Chief Financial Officer Fumihiko Ike also told a small group of reporters that the company plans to announce its earnings forecast for the current fiscal year before its shareholders' meeting, which is scheduled for June 23. (Reporting by Kentaro Sugiyama; Writing by Junko Fujita; Editing by Edmund Klamann)

Source;
http://www.reuters.com/article/2011/05/17/honda-production-idUST9E7GA01I20110517

Honda says parts supply recovery picking up speed

May 17 (Reuters) - Honda Motor is seeing a speeding up in the recovery of parts supplies, which will be key to bringing forward its timing for a return to normal production after a March earthquake and tsunami in northeastern Japan disrupted supply chains, the automaker's chief financial officer said on Tuesday.

Honda Chief Financial Officer Fumihiko Ike also told a small group of reporters that the company plans to announce its earnings forecast for the current fiscal year before its shareholders' meeting, which is scheduled for June 23. (Reporting by Kentaro Sugiyama; Writing by Junko Fujita; Editing by Edmund Klamann)

Source;
http://www.reuters.com/article/2011/05/17/honda-production-idUST9E7GA01I20110517

Honda Motor To Cut Number Of Directors To 12 From 20 - Update

(RTTNews) - Japanese automaker Honda Motor Co., Ltd. (HMC: News ) Tuesday stated that its board of directors has decided on a plan for changes in management and board structures. The plan includes reducing the number of directors to twelve from presently twenty.

The plan, which was decided at a board meeting held today, is intended to strengthen the company's management structure amid changes in the economic environment.

The planned changes are subject to shareholders' approval at the general meeting to be held in late June 2011 and a decision at the board meeting to be held immediately thereafter.

According to the company, in 2005, it had implemented an operating officer system to strengthen the execution of regional and on-site operations and to carry out appropriate management decisions. In that system, a structure was established to differentiate the roles between directors and operating officers.

Honda Motor today said it will designate all of the directors who have business execution roles, including the president, as operating officers. In conjunction with these changes, titles such as senior managing, managing, and the like will be attributed to officers within the operating officer system.

Further, the company will elect a member from the operating officers as a candidate for director.

This member will be responsible for deciding matters provided by law and for monitoring and supervising business execution, in order to speed-up and streamline board's decision making. This member will also respond to the requests of shareholders and investors.


As a consequence of these changes, the number of directors will change from twenty to twelve in late June this year. Meanwhile, the company will maintain the number of corporate auditors at five.

In addition, in order to align with the beginning of the business year, the time of assumption of office for operating officers will be changed to April 1. It was late June earlier.

HMC closed Friday's trading at $44.49, up $0.12, on a volume of 496,400 shares.

Source;
http://www.rttnews.com/Content/BreakingNews.aspx?Id=1558176&SM=1

Honda Motor To Cut Number Of Directors To 12 From 20 - Update

(RTTNews) - Japanese automaker Honda Motor Co., Ltd. (HMC: News ) Tuesday stated that its board of directors has decided on a plan for changes in management and board structures. The plan includes reducing the number of directors to twelve from presently twenty.

The plan, which was decided at a board meeting held today, is intended to strengthen the company's management structure amid changes in the economic environment.

The planned changes are subject to shareholders' approval at the general meeting to be held in late June 2011 and a decision at the board meeting to be held immediately thereafter.

According to the company, in 2005, it had implemented an operating officer system to strengthen the execution of regional and on-site operations and to carry out appropriate management decisions. In that system, a structure was established to differentiate the roles between directors and operating officers.

Honda Motor today said it will designate all of the directors who have business execution roles, including the president, as operating officers. In conjunction with these changes, titles such as senior managing, managing, and the like will be attributed to officers within the operating officer system.

Further, the company will elect a member from the operating officers as a candidate for director.

This member will be responsible for deciding matters provided by law and for monitoring and supervising business execution, in order to speed-up and streamline board's decision making. This member will also respond to the requests of shareholders and investors.


As a consequence of these changes, the number of directors will change from twenty to twelve in late June this year. Meanwhile, the company will maintain the number of corporate auditors at five.

In addition, in order to align with the beginning of the business year, the time of assumption of office for operating officers will be changed to April 1. It was late June earlier.

HMC closed Friday's trading at $44.49, up $0.12, on a volume of 496,400 shares.

Source;
http://www.rttnews.com/Content/BreakingNews.aspx?Id=1558176&SM=1