Modern Business Project

Made By-Ankita Arshita Priyanka Khushboo

Preface

Contents
1. Introduction 2. History 3.

Introduction
Honda Motor Company, Ltd is a Japanese multinational corporation primarily known as a manufacturer of automobiles and motorcycles. Honda is the world's largest manufacturer of motorcycles as well as the world's largest manufacturer of internal combustion engines measured by volume. Honda surpassed Nissan in 2001 to become the secondlargest Japanese automobile manufacturer. Honda was the first Japanese automobile manufacturer to release a dedicated luxury brand in North America with the debut of Acura in 1986. Aside from their core automobile and motorcycle businesses, Honda also manufactures garden equipment, marine engines, personal watercraft and power generators, amongst others. Since 1986, Honda has been involved with artificial intelligence/robotics research and released their ASIMO robot in 2000. They have also ventured into aerospace with the establishment of GE Honda Aero Engines in 2004 and the Honda HA-420 Honda Jet, scheduled to be released in 2011.

History
From a young age, Soichiro Honda ( , Honda S ichir ) had an interest in automobiles. He worked as a mechanic at a Japanese tuning shop, Art Shokai, where he tuned cars and entered them in races. A self-taught engineer, he later worked on a piston design which he hoped to sell to Toyota. The first drafts of his design were rejected, and Soichiro worked painstakingly to perfect the design, even going back to school and pawning his wife's jewelry for collateral. Eventually, he won a contract with Toyota and built a factory to construct pistons for them, which was destroyed in an earthquake. Due to a gas shortage during World War II, Honda was unable to use his car, and his novel idea of attaching a small engine to his bicycle attracted much curiosity. He then established the Honda Technical Research Institute in Hamamatsu, Japan, to develop and produce small 2-cycle motorbike engines. Calling upon bicycle shop owners across Japan to take part in revitalizing a nation torn apart by war, Soichiro received enough capital to engineer his first motorcycle, the Honda Cub. This marked the beginning of Honda Motor Company, who would grow a short time later to be the world's largest manufacturer of motorcycles by 1963. The first production automobile from Honda was the T360 mini pick-up truck. Powered by a small 356 cc straight-4 gasoline engine, it was classified under the cheaper Kei car tax bracket. The first production car from Honda was the S500 sports car. Its chain driven rear wheels points to Honda's motorcycle origins.

working as a car mechanic before returning home to start his own auto repair business in 1928 at the age of 22. without any formal education. In 1959 Honda Motorcycles opened its first dealership in the United States." In retirement Honda busied himself with work connected with the Honda Foundation. In 1937 Honda began producing piston rings for small engines which lead to manufacturing small engines to be used in motorcycles. Honda spent his early childhood helping his father. Soichiro was born in Hamamatsu. His legendary status was such that People magazine placed him on their "25 Most Intriguing People of the Year" list for 1980. .. Ltd. Honda left home and headed to Tokyo to look for work. He died in 1991 from liver failure. a blacksmith. Gihei. Mika.S ichir Honda was a Japanese engineer and industrialist. was a weaver. Honda remained president until his retirement in 1973. and after some vacillation over his employment. He obtained an apprenticeship at a garage in 1922. Shizuoka. Japan. with his bicycle repair business. and then in 1948 he started producing complete motorcycles as president of the Honda Motor Company.. and founder of Honda Motor Co. stayed on as director. Honda turned the company into a billion-dollar multinational that produced the best-selling motorcycles in the world. dubbing him "the Japanese Henry Ford. he stayed for six years. and was appointed "supreme adviser" in 1983. At the time his mother. Honda's excellent engineering and clever marketing resulted in Honda motorcycles out-selling Triumph and Harley-Davidson in their respective home markets. At 15.

Leadership 1948-1973 ² Soichiro Honda 1973-1983 ² Kiyoshi Kawashima 1983-1990 ² Tadashi Kume 1990-1998 ² Nobuhiko Kawamoto 1998-2004 ² Hiroyuki Yoshino 2004-2009 ² Takeo Fukui 2009-present ² Takanobu It .

Front row Chairman and Representative Director.Satoshi Aoki President and Representative Director.Takanobu Ito Executive Vice President and Representative Director.Koichi Kondo Back row Akio Hamada Mikio Yoshimi Atsuyoshi Hyogo Shigeru Takagi Tetsuo Iwamura .

Corporate governance .

Remuneration for directors and corporate auditors is based on criteria approved by the Board of Directors. subject to agreement of the Board of Corporate Auditors. Bonuses for directors and corporate auditors . two of whom are external appointees. In FY2008 the Board of Corporate Auditors met 13 times. three of whom are external appointees. ‡Director remuneration The total amount of remuneration and bonuses of directors and corporate auditors is determined according to criteria that reflect company performance. It supervises the execution of Honda¶s business affairs and makes decisions on matters of importance to the company. Corporate auditors conduct these audits through various means. ‡Board of Corporate Auditors The Board of Corporate Auditors consists of five corporate auditors. Candidates for corporate auditor are nominated and appointed by resolution of the Board of Directors. and apportionment of responsibilities and decisions of the Board of Corporate Auditors. including legal issues. auditing policies. The board met seven times in FY2008. Each corporate auditor audits the directors¶ execution of duties in accordance with Honda auditing standards. a Corporate Auditors¶ Office has been established to provide direct support to the Board of Corporate Auditors. In addition. and is paid within the extent of the maximum amount set by resolution of the Ordinary General Meeting of Shareholders.Management structure ‡Board of Directors The Board of Directors has 21 members. such as attending meetings of the Board of Directors and reviewing the status of the company¶s assets and liabilities. ‡Decisions regarding director candidates Candidates for director are nominated and appointed by the Board of Directors.

Research and development activities are conducted principally at Honda¶s independent subsidiaries. Ltd. Securities Exchange Act. Each functional operation. including Customer Service Operations.. These regional operations adopt long-term perspectives and maintain close ties with local communities. taking into consideration company profits during the fiscal year. Ltd. Each operation aims to maximize its performance on a global basis. Business Support Operations and Business Management Operations. Honda¶s three business operations² motorcycles. supports the other functional operations. The Honda Group proactively conducts research and development in advanced technologies with the aim of creating products that are distinctive and internationally competitive. past bonuses and other factors. . Honda R&D Co. Business execution system ‡Organization Honda has six administrative regions around the world to execute and develop business based on its fundamental corporate philosophy. automobiles and power products ² formulate mediumand long-term business plans.S.. with the aim of increasing Honda¶s operational efficiency.are based on decisions of the Ordinary General Meeting of Shareholders. is responsible for product research and development. while Honda Engineering Co. as its independent auditor for the purposes of Japan¶s Company Law and Securities and Exchange Law as well as the U. handles research and development in the area of production technology. Production Operations. ‡Accounting audits Honda has appointed KPMG Azsa & Co. Purchasing Operations.

Honda maintains a highly efficient business execution system. By ensuring swift. as well as to each research and development subsidiary. . which consists of the President. The Executive Council met 29 times in FY2008. Along with discussing in advance the agendas of meetings of the Board of Directors.‡Business execution officer system Honda assigns a general manager from the Board of Directors or an Operating Officer to each regional and functional division. the Executive Council discusses important management issues within the scope of authority conferred upon it by the Board of Directors. optimal decision-making in each region and workplace. Vice President and Senior Managing Directors (for a total of nine members). ‡Regional Operating Boards To enhance the independence of each administrative region and ensure swift decision-making. regional operating boards have been established in each administrative region to discuss important regional management issues within the scope of authority conferred upon them by the Executive Council. ‡Executive Council Honda has established an Executive Council.

Background Honda headquarters building in Japan Honda is headquartered in Minato. With high fuel prices and a weak US economy in June 2008. Their shares trade on the Tokyo Stock Exchange and the New York Stock Exchange. such as Honda Siel Cars and Hero Honda Motorcycles in India. and is building new corporate headquarters in Markham. Sapporo. Honda's sales were up almost 20 percent from the same month last year.California. is based in Torrance. is headquartered in the Scarborough district of Toronto. Guangzhou Honda and Dongfeng Honda in China. Tokyo. Japan. Honda Canada Inc. as well as exchanges in Osaka. Honda has also created joint ventures around the world. Ontario. Fukuoka. American Honda Motor Co. and Honda Atlas in Pakistan. Honda has reported a 1% sales increase while its rivals. Nagoya. London. Analysts have attributed this to . Honda of Canada Manufacturing. Ontario. Kyoto. their manufacturing division. scheduled to relocate in 2008. is based in Alliston. Ontario. have reported double-digit losses. Paris and Switzerland. The Civic and the Accord were in the top five list of sales. including the Detroit Big Three and Toyota.

producing more than 14 million internal combustion engines each year. . The economic crisis has been spreading to other important players in the vehicle related industries as well. in that they can be easily retooled to produce any Honda model that may be in-demand at the moment. First.two main factors. Honda's product lineup consists of mostly small to mid-size. Honda has designed its factories to be flexible. were still not immune to the global financial crisis of 2008. three of the strongest vehicle companies in the world. Honda is the second largest manufacturer in Japan behind Toyota and ahead of Nissan. Honda. over the last ten years. highly fuel-efficient vehicles. Currently. Honda surpassed Chrysler as the 4th largest automobile manufacturer in the United States. and Toyota. as these companies reduced their profitability forecasts. Secondly. Nissan. As of August 2008. Honda is the 6th largest automobile manufacturer in the world as well as the largest engine-maker in the world. Honda spends about 5% of its revenues into R&D.

they produced the Hate Something advert. Canada .. A post 2005 style Honda dealership in Moncton. In 2004. usually immediately followed by a shortened version of the 2005/2006 Impossible Dream advert. The advertisement depicted a single cog which sets off a chain of events that ends with the Honda Accord moving and Garrison Keillor speaking the tagline. In 2003. work?" It took 606 takes to get it perfect. "Isn't it nice when things just. Mr. Honda's belief is that well built products will sell themselves. Honda released its Cog advertisement in the UK and on the Internet. To the chagrin of the engineers at Honda. the engineers at Honda constructed a Rube Goldberg Machine made entirely out of car parts from a Europe Domestic Market Honda Accord (upon which the USDM Acura TSX is based). To make the ad. all the parts were taken from two of only six hand-assembled pre-production models of the Accord.Marketing Honda's official slogan is "The Power of Dreams". They have never used this slogan to sell their products..

then a powerboat. tooling. then rides a succession of vintage Honda vehicles: a motorcycle. and were the official sponsor of the 2006 FIA Formula 1 telecast on broadcaster channel "Ten". Honda released The Impossible Dream a two-minute panoramic advertisement filmed in New Zealand. Soichiro Honda. and had a good relationship with Nobuhiko Kawamoto. He had immense respect for founder. saying that virtually all of the 72 victories were achieved by Honda powered (engined) machines. While singing The Impossible Dream (The Quest). Japan and Argentina which illustrates the founder's dream to build performance vehicles. Sceptics have accused Honda of interpreting their racing history rather liberally. In December 2005. In fact. then goes over a waterfall only to reappear piloting a hot air balloon. with Garrison Keillor saying "I couldn't have put it better myself" as the song ends. The song is from the 1960s musical "Man Of La Mancha". leaves his trailer on a minibike. the chairman of Honda at that time. Ayrton Senna. former and current staff of the McLaren F1 team have reiterated that Honda contributed more than just engines and provided various chassis. sung by Andy Williams. However. Honda advertised heavily during most motor racing telecasts. then a car. Senna once called Honda "the greatest company in the world". respectively. they were the only manufacturer involved in the 2006 Indy Racing League season. Honda released its Choir advertisement.In 2006. Nevertheless. Honda claimed they "built" cars that won 72 Formula 1 Grand Prix. the majority of victories attributed to Honda in the advertisements were won by Formula 1 cars . and aerodynamic parts as well as funding. This featured a 60-person choir who sang the car noises as film of the Honda Civic are shown. repeatedly stated that Honda probably played the most significant role in his three world championships. In Australia. In a series of adverts promoting the history of Honda's racing heritage. whereas the cars themselves were designed and built by Lotus F1. and McLaren F1 teams. a man reaches for his racing helmet. Williams F1. arguably the greatest F1 driver of all time. for the UK and the internet.

whether it is for bikes. looking at the exhibits with almost child-like wonderment (spreading out its arms in the aerospace exhibit.which were neither built nor designed by Honda. etc. It concludes with the tagline: "More forwards please".). As part of their marketing campaign. waving hello to an astronaut suit that resembles him. battling strong winds and flying debris. while Honda engineers in white suits walk and run towards a great light. Opportunity. However they had announced that they would not continue in 2008 due to the sponsorship price requested by ITV being too high. his . In late 2006 Honda released an ad with ASIMO exploring a museum. powerboats ² even lawnmowers. Honda released its Hondamentalism campaign. The campaign highlights the lengths that Honda engineers go to in order to get the most out of an engine. Honda's advertising has featured an animated character known simply as Mr. while Garrison Keillor ruminates on progress. Also. Honda also sponsored ITV's coverage of Formula One in the UK for 2007. focuses on their strengths in racing and the use of the Red H badge ² a symbol of what is termed as "Hondamentalism". holding on to anything that will keep them from being blown away. In the TV spot. and I'm knockin'". during model close-out sales for the current year before the start of the new model year. followed by him "knocking" on the television screen or "thumping" the speaker at the end of radio ads. Opportunity. commercials for Honda's international hatchback. cars. Finally one of the engineers walks towards a red light. "An engineer once said to build something great is like swimming in honey". For the last several years in the United States. The casual looking man talks about various deals offered by Honda and ends with the phrase "I'm Mr. and have little or no connection with Honda's current F1 operations. Garrison Keillor says. voiced by Rob Paulsen. Honda is an official partner and sponsor of Major League Soccer. the Jazz. In May 2007. are parodies of well-known pop culture images such as Tetris and Thomas The Tank Engine.

Honda . The digital campaign aims to show how visitors to the site share many of the Hondamentalist characteristics. It showed skydivers jumping from an aeroplane over Spain and forming the letters H. D and A in mid-air." a collection of 5-8 minute web vignettes that focus on the core philosophies of Honda.hand outstretched. demonstrating a hybrid engine. Honda has become a major sponsor of the CBS gameshow The Price Is Right. O. Kick Out the Ladder and Mobility 2088. The 90 second advert features large scale puzzles. large shapes and a 3-dimensional puzzle. a hydrogen powered car.honda. headquarters are located in the home state of both host Drew Carey and announcer Rich Fields (Ohio). The advert lasted three minutes. They feature Honda employees as well as Danica Patrick. as well as the Showcases. Joe Johnston and Orson Scott Card. The film series plays at dreams. On episodes in which a Honda car makes an appearance. The next flight of one of the two planes involved resulted in a fatal crash as the plane broke apart in mid-air. The following year. . Since 2008. Christopher Guest. Honda's U. both games that are played for cars use Hondas as a prize. Additionally. A web address is shown for the Hondamentalism website. more efficient solar panels and the FCX Clarity.the Problem Playground. involving Rubik's cubes.broadcast a live advertisement.in partnership with Channel 4 . The advert outlines Honda's environmental responsibility. Ben Bova.S. Chee Pearlman. In 2009. N. American Honda released the "Dream the Impossible Documentary Series. Current short films include Failure: The Secret to Success. This live advertisement is generally agreed to be the first of its kind on British television.com. Honda released . On 29 May 2008. at the beginning of 2008.

405[1] 31 mpg[2] Seating for 5 2009 Accord Sedan Starting at $20.905[1] 31 mpg[2] Seating for 5 .Product Line Honda automobiles 2009 Accord Coupe Starting at $22.

650[1] 45 mpg[2] Seating for 5 2009 Civic GX NGV Starting at $25.305[1] 36 mpg[2] Seating for 5 2009 Civic Hybrid Starting at $23.190[1] 36 mpg[2] Seating for 5 .2009 Civic Coupe Starting at $15.

905[1] 29 mpg[2] Seating for 5 2009 Civic Si Sedan Starting at $22.505[1] 36 mpg[2] Seating for 5 2009 Civic Si Coupe Starting at $21.105[1] 29 mpg[2] Seating for 5 .2009 Civic Sedan Starting at $15.

275[1] 25 mpg (2WD)[2] Seating for 4 2009 Element SC Starting at $23.270[1] 23 mpg highway (2WD)[2] Seating for 4 .245[1] 27 mpg[2] Seating for 5 2009 Element Starting at $20.2009 CR-V Starting at $21.

800[1] 43 mpg[4] Seating for 5 .750[1] 33 mpg[2] Seating for 5 2010 Insight Hybrid Starting at $19.2009 FCX Clarity Range: 240 miles[3] Seating for 4 2009 Fit Starting at $14.

805[1] 25 mpg Highway (EX-L.895[1] 23 mpg (2WD)[4] Seating for 8 2009 Ridgeline Starting at $28.200[1] 20 mpg[2] Seating for 5 .2010 Odyssey Starting at $26. Touring)[4] Seating for 8 View 2009 Model 2010 Pilot Starting at $27.

Engines Honda Outboard motor on a pontoon boat Honda is the largest engine maker in the world. Honda has a number of firsts in many categories. which replaces the standard Derailleur found on most bikes. including the first engine to meet the 1970 US Clean Air Act (1975 CVCC) .995[1] 25 mpg[2] Seating for 2 Mountain bikes Honda has also built a Downhill racing bike. known as the Honda RN01. Honda has taken on several people to pilot the bike. among them is Greg Minnaar. The key feature of this bike is the gearbox. The team is known as Team G Cross Honda.2009 S2000 Starting at $34.

7 mph). Honda's robot ASIMO (see below) as an R&D project brings together expertise to create a robot that walks. Weighing 54 kilograms and standing 130 centimeters tall. at up to 6 km/h (3. It is the eleventh in a line of successive builds starting in 1986 with Honda E0 moving through the ensuing Honda E series and the Honda P series. ASIMO resembles a small astronaut wearing a backpack.Robots ASIMO at Expo 2005 ASIMO is the part of Honda's Research & Development robotics program. which ASIMO has demonstrated by taking two plunges off a staircase. . and can walk on two feet in a manner resembling human locomotion. human motions such as climbing stairs are difficult to mimic with a machine. ASIMO is the world's only humanoid robot able to ascend and descend stairs independently.[19] However. dances and navigates steps.

increased aerodynamics and fuel efficiency thus reducing operating costs. In 1968.Aeroplanes Honda has also pioneered new technology in its HA-420 HondaJet that allows new levels of reduced drag. Honda-powered Brabhams dominated the 1966 French Formula Two championship in the hands of Jack Brabham and Denny Hulme. 1967 saw their next win at the Italian Grand Prix with John Surtees as their driver. coupled with their commercial difficulties selling automobiles in the United States. who scored Honda's first point at the Belgian Grand Prix. This racing tragedy. and Honda's first win at the Mexican Grand Prix. After a learning year in 1965. Jo Schlesser was killed in a Honda RA302 at the French Grand Prix. As there was no European Championship that . prompted Honda to withdraw from all international motorsport that year. Honda F1 Rubens Barrichello driving for Honda Honda entered Formula One as a constructor for the first time in the 1964 season at the German Grand Prix with Ronnie Bucknum at the wheel. 1965 saw the addition of Richie Ginther to the team.

Harvey Postlethwaite. Honda-powered cars overwhelmingly dominated the IndyCar Series. In 2003. Honda became the sole engine supplier for the IndyCar Series. Honda instead came back as an official engine supplier to British American Racing (BAR) and Jordan Grand . the company powered six consecutive drivers championships. this was the top F2 championship that year. before switching abruptly to Williams in 1984. WilliamsF1 won the crown in 1986 and 1987. In a related exercise. Honda withdrew from Formula One at the end of 1992. for the first time in Indianapolis 500 history. winning four races with Ligier and Jordan Grand Prix. Honda powered cars won six consecutive Formula One Constructors Championships. John Judd's Engine Developments company produced a turbo "Brabham-Honda" engine for use in IndyCar racing. Honda returned to Formula One in 1983. Drivers' Championship and Rookie of the Year titles.season. 1990 and 1991. In the early 1980s Honda returned to F2. winning 14 of 16 IndyCar races. Tauranac had designed the Brabham cars for their earlier involvement. Honda debuted in the CART IndyCar World Series as a works supplier in 1994. In 2004. supplying engines to Ron Tauranac's Ralt team. New partners Team McLaren won the title in 1988. initially with another Formula Two partner. The engines were far from competitive at first. During 1998. in 1988 for Bobby Rahal at Pocono. Honda switched allegiance again in 1988. and claimed the IndyCar Series Manufacturers' Championship. They were again extremely successful. the race was run without a single engine problem. including the Indianapolis 500. Honda transferred its effort to the rival IRL IndyCar Series. In 2006. 1989. In the late 1980s and early 1990s. It won only one race. Honda considered returning to Formula One with their own team. including the Indianapolis 500. although the related Mugen-Honda company maintained a presence up to the end of 1999. but after development. The project was aborted after the death of its technical director. the Spirit team. In the 2006 Indianapolis 500.

It was announced on 5 December 2008 that Honda would be exiting Formula One with immediate effect due to the 2008 global economic crisis. Honda won the 2006 Hungarian Grand Prix with driver Jenson Button.Prix. Honda bought a stake in the BAR team in 2004 before buying the team outright at the end of 2005. Motorcycles Honda CBR1000RR sport bike Honda Racing Corporation (HRC) was formed in 1982 by Richard Hynda. The company combines participation in motorcycle races throughout the world with the development of high potential racing machines.The team was sold to former team principal Ross Brawn and renamed Brawn GP. becoming a constructor for the first time since the 1960s. Its racing activities are an important source for the creation of .

Honda won their first 500 cc Grand Prix World Championship with Freddie Spencer. Honda's race bikes were known for their "sleek & stylish design" and exotic engine configurations. 125 cc bike and their 6-cylinder 250 cc and 380 cc bikes. In motocross. HRC also contributes to the advancement of motorcycle sports through a range of activities that include sales of production racing motorcycles. monocoque-framed.000 rpm. In the World Enduro Championship. winning a plethora of top level titles with riders such as Valentino Rossi and Mick Doohan. the NS500 and in 1983. four-stroke NR500. being a race driver himself. Honda has become a dominant marque in motorcycle Grand Prix racing. in an attempt to comply with the FIM rules which limited engines to four cylinders. and rider education programs. While always having powerful engines. The NR500 featured elongated cylinders each with 8 valves and with connecting rods in pairs. Honda has captured six titles. it took until 1961 for Honda to tune their chassis well enough to allow Mike Hailwood to claim their first Grand Prix victories in the 125 and 250 cc classes. Honda entered five motorcycles into the Isle of Man TT race. the most prestigious motorcycle race in the world. 22. Honda debuted their first two stroke race bike. most recently with Stefan Merriman in 2003 and with Mika Ahola in 2007 and 2008. In 1959. Soichiro Honda. it seemed Honda tried to accomplish too much at one time and the experiment failed. 1979 saw Honda return to Grand Prix motorcycle racing with their exotic. could not stay out of international motorsport. For the 1982 season.leading edge technologies used in the development of Honda motorcycles. Hailwood would later pick up their first senior TT wins in 1966 and 1967. Since then. Honda has claimed 6 motocross world championships. Unfortunately. such as the 5-cylinder. . support for satellite teams. Honda engineered the elongated cylinders in an effort to provide the valveinant two-stroke racers.

Electric and alternative fuel vehicles 2009 Honda Civic GX hooked up to Phill refueling system Top: Brazilian flexible-fuel Honda Civic. . Below: US Honda Civic Hybrid.

2010 Honda Insight hybrid electric vehicle (Second generation). Honda FCX Clarity hydrogen fuel cell vehicle .

the Civic GX was released in New York. In 2006. As others Brazilian flex-fuel vehicles. 33 percent of the Civic production and 28 percent of the Fit models. Initially.000 premium for the Civic. the carmaker decided to produce a limited share of the vehicles with flex-fuel engines. the sale price for the flex-fuel version was higher than the respective gasoline versions. jumping to 41.427 cars against 8. but does not run on gasoline.546 gasoline-powered automobiles. Also.Compressed natural gas The Honda Civic GX is the only natural gas vehicle (NGV) commercially available in some parts of the US. The car looks and drives just like a contemporary Honda Civic LX. both flex-fuel models sold 2. Flexible-fuel Honda's Brazilian subsidiary launched flexible-fuel versions for the Honda Civic and Honda Fit in late 2006. making it the second state where the consumer is able to buy the car. Honda started offering the GX directly to the public through factory trained dealers certified to service the GX.990 .[23][24] The Honda Civic GX first appeared in 1998 as a factory-modified Civic LX that had been designed to run exclusively on compressed natural gas. despite the fact that all other flex-fuel vehicles sold in Brazil had the same tag price as their gasoline versions. and US$ 650 for the Fit.S. Before that. First leased to the City of Los Angeles. During the last two months of 2006. In July 2009. these models run on any blend of hydrous ethanol (E100) and E20-E25 gasoline. in 2005. around US$ 1. and in order to test the market preferences. Honda launched in the Brazilian market its third flexiblefuel car. Home refueling is available for the GX with the addition of the Phill Home Refueling Appliance. In 2001. the Honda City. the Civic GX was rated the cleanest-burning internal combustion engine in the world by the U. only fleets were eligible to purchase a new Civic GX. Environmental Protection Agency (EPA).

Honda has also been selling since 2002 the Honda Civic Hybrid (2003 model) in the US markets It was followed by the Honda Accord Hybrid.S. .000 vehicles. The first-generation Insight was produced from 2000 to 2006 and had a fuel economy of 70 miles per US gallon (3. with half of those sales in the United States. just one month before the introduction of the Toyota Prius. the CG 150 Titan Mix is sold for around US$2. In March 2009 Honda launched in the Brazilian market the first flex-fuel motorcycle in the world. 84 mpg-imp) for the EPA's highway rating. Honda expects to sell 200. Produced by its Brazilian subsidiary Moto Honda da Amazônia. At USD 19. market will receive the new Insight in April 2009. by early 2009 a hundred percent of Honda's automobile production for the Brazilian market is now flexible-fuel.000. and initially sold for USD 20. the Honda Insight. and reaching 93. as well as another unique small hybrid vehicle based on the CR-Z sports car concept that it introduced at the 2007 Tokyo Motor Show.361 in 2008. the most fuel-efficient mass-produced car at the time.000 of the vehicles each year. Honda is also planning to introduce a hybrid version of its Fit .700. Hybrid electric Honda launched in late 1999 the first commercial hybrid electric car sold in the US market .800 as a five-door hatchback it will be the least expensive hybrid available in the US. Due to the success of the flex versions.4 L/100 km. Honda introduced the second-generation Insight in its home nation of Japan in February 2009. and only a small percentage of gasoline version is produced in Brazil for exports. Total global sales for the Insight amounted to only around 18. with release in other markets to expected through 2009 the U.flex-fuel cars in 2007. offered in model years 2005 through 2007.

the FCX Clarity combines hydrogen and oxygen from ordinary air to generate electricity for an electric motor. .8 million for four H2 fueling stations. More efficient than a gas-electric hybrid vehicle.7 million USD each. costing $1. Like a gas-electric hybrid. Honda will release the vehicle in groups of 150. thus improving fuel efficiency. California is the only US market with infrastructure for fueling such vehicle. it uses a lithium ion battery to assist the fuel cell during acceleration and capture energy through regenerative breaking. Honda Motors produced the first assembly-line FCX Clarity. though the number of stations is still limited. The lack of hydrogen filling stations throughout developed countries will keep production volumes low. Japan.Hydrogen fuel cell In Takanezawa. The vehicle itself does not emit any pollutants and its only byproducts are heat and water. Building more stations is expensive. 2008. on June 16. a hybrid hydrogen fuel cell vehicle. as the California Air Resources Board (CARB) granted $6. The FCX Clarity also has an advantage over gaselectric hybrids in that it does not use an internal combustion engine to propel itself.

CORPORATE SOCIAL RESPONSIBILITY .

y What to do if the law has been violated Whenever a violation of the law or the risk of such an occurrence is noticed. With each one of us sharing these values. every Honda associate in various countries around the world needs to share a common value at Honda and become even more self-reliant. y What to do in case of unclear interpretation Whenever there is a doubt or unclear interpretation of the law. we will be able to further gain the trust of our customers and society. we will immediately report to or consult with the supervisor or the legal department. or make a proposal to the Business Ethics Proposal Line.´ Compliance y Respect for the Law y Proper understanding of the law We will understand and abide by the letter as well as the spirit of applicable laws. helping Honda strengthen our position as ³a company that society will want to exist. y Report/notification to government agencies . stay informed of any revisions to the law and take the necessary courses of action. The ³Honda Conduct Guideline´ represents the important values that have guided our actions to date. we have shared a ³joy´ and established a trust with customers and society around the world.Conduct Guidelines Honda group companies in each region create their own Guideline based on the µHonda Conduct Guideline¶. we will consult with the legal department. In order to further advance our global business in each region. Guided by Honda Philosophy. government bodies and/or outside experts. Honda has expanded its business globally based on the pursuit of new dreams and the determination to make them come true. Through these efforts.

y Traffic Safety In order for Honda to be a leader in traffic safety. we will consult with the department that created the rule to confirm proper understanding. y Respect for Company Rules y Proper understanding of company rules We will understand and abide by the letter as well as the spirit of related company rules. y Respect for Social Norms As a member of society. 1. y Environmental Protection To help Honda actively promote environmental protection. y What to do if rules have been violated Whenever a violation of a company rule or the risk of such an occurrence is noticed. Proper processing of waste and pollutants .We will properly make reports/notifications to government agencies as required by law. we will proactively seek the means to protect the environment. we will behave ethically and in accordance with the common sense of the community in which we operate. we will report to or consult with the supervisor or make a proposal to the Business Ethics Proposal Line. y Report/notification We will properly make reports/notifications as required by company rules. stay informed of any revisions and take the necessary courses of action. y What to do in case of unclear interpretation Whenever there is a doubt or unclear interpretation of a company rule. we will abide by traffic rules and drive safely.

we will pay the utmost attention to the appropriate handling of confidential information. y Management of Information In order for Honda to properly manage customer. as required by environmental laws or company rules. noise. disposal. we will actively participate in activities that contribute to the well being of society. service. Efficient use of natural resources and recycling We will strive to make efficient use of energy and other natural resources. etc. smells. y Contributions to Society In order for Honda to be a good corporate citizen with strong roots in the community and society at large. Volunteer activities We will actively encourage. 2. 3. and continue to advance our recycling efforts.and business partner-related information. recording and reporting on the environment related to soil. Community Participation We will become active members of the local community and participate in local activities. Social welfare We will actively support people with mental and physical difficulties.We will strive to minimize and properly process waste and pollutants at each step of our activities. ultimately. Disaster relief We will actively support disaster relief activities. 1. Management of Information Security . and. Legally required measurements. 3. 2. logistics. 1. support and participate in volunteer activities. recording and reporting We will conduct measurements. underground water. sales. production. 4. in development.. air.

y Discrimination In order to make sure Honda is a fair. we will affirmatively accept the uniqueness and differences of people around the world and act in adherence to the principle that all people are created equal. we will immediately report to the supervisor. Prevention of discrimination . business partners. Emergency contacts To ensure quick action. 1. 3. 4. Accident prevention We will strive to manage potentially dangerous processes and areas to prevent injuries on the job. 2. What to do in case of disaster Whenever a disaster occurs. everyone will be informed in advance of what to do and who to contact in the event of an emergency situation. and carefully managing computers and security passwords. priority must be given to protecting human life and preventing the disaster from worsening. Action to be taken when an unsafe operation is discovered Whenever an unsafe process or area is noticed. and associates. 1.We will appropriately manage information security such as the locking of storage cabinets. hygienic and comfortable work environment for every Honda associate. well-organized and clean workplace. 5. Confidential Information Disclosure Prevention We will not release confidential information or personal information regarding customers. 2. discrimination-free company. Respect for smoking rules We will respect rules and etiquette regarding smoking. y Safety and Hygiene We will strive to provide a safe. Providing for a comfortable working environment We will provide a comfortable working environment by maintaining an orderly. 6.

religion. Prohibition on improper exercise of positions and authorities We shall not exercise positions or authorities inappropriately to exact improper benefits from business partners. 2. we will neither offer nor accept gifts or benefits beyond that normally considered appropriate. y Protection of Privacy To make sure Honda emphasizes the privacy of individuals. Selection of business partners When we need to purchase products or services. sound transactions.We will not discriminate according to place of birth. Respect for Privacy Protection Laws We will abide by the letter as well as the spirit of laws protecting individual privacy. we will select a business partner by comparing and evaluating in an impartial manner the terms and conditions offered by various business partners. 1. Prevention of Unauthorized Revelation of Private Information Before providing private information to a third party. age. hobbies. education. physical or mental disability. Prohibition of Use of Discriminatory Language We will not use words/expressions considered discriminatory or that may be interpreted as discriminatory. ethnic origin. 3. we will conduct fair. beliefs. race. y Relationships with Governmental Agencies . nor will we give business partners improper benefits. nationality. we must first obtain the approval of the person(s) concerned. sex. or status within society. y Business Transactions To make sure Honda maintains a fair and sound relationship with our business partners. 2. 1. 2. we will do our utmost to respect and protect privacy. Prohibition on excessive gifts and benefits In our dealings with business partners. legally protected medical condition.

Prohibition on excessive gifts and benefits We will not offer government officials any gift or benefit exceeding the social custom or socially accepted limits. Abiding laws and regulations for ethics We will act in a manner that recognizes government officials¶ ethics and what are considered conflicts of interest under the relevant laws and regulations. 2. y Communication As a highly accountable company. we will keep our relationships with government officials in a straightforward and sincere manner.As representatives of an independent corporation. 1. . we will value communications with society.

Environmental initiatives in FY 2008 Product development initiatives ‡Emissions enhancements Honda Fit Exhaust purification (high-precision air-fuel ratio control) system sensor .

second-generation Honda Fit was released in October 2007. With the new Fit we aimed to maintain a highly efficient system for cleaning exhaust emissions while decreasing the use of rare precious metals. the Fit features a linear air-fuel ratio sensor. . the Fit is now sold in 115 countries worldwide. allowing us to reduce the quantity of precious metals used in the converter. both of which are certified by Japan¶s MLIT as very low-emissions engines. It is available with a 1. in which two oxygen sensors are used for airfuel ratio control. Instead of the conventional approach. First introduced to Japan in 2001. an oxygen sensor and an air-flow sensor. The aluminum of the exhaust ports speeds up catalytic activation immediately after the engine is started. with cumulative sales surpassing 2 million units.Integrated cylinder head exhaust manifold The completely remodeled. The latest model features a newly developed integrated cylinder head exhaust manifold and an extremely heat-resistant catalytic converter.3-liter or 1. This high precision air-fuel ratio control greatly improves environmental performance.5-liter i-VTEC engine.

It boasts increased fuel economy with improved combustion efficiency through the use of only one valve and the implementation of low-friction technology. The Fit features various other friction-reducing technologies. a .‡Fuel economy enhancements Torque converter-equipped CVT 1.3-liter i-VTEC engine The new Fit achieves a class-leading fuel economy of 24. Its 4-valve i-VTEC engine balances fuel economy and high power output.3-liter i-VTEC engine and a newly designed torque converter²equipped continuously variable transmission (CVT). The pistons have a patterned molybdenum disulfide coating (a world¶s first) and an optimized piston skirt configuration. The Fit exceeds Japan¶s FY2011 fuel efficiency standards by 25%. including a crank embedded with molybdenum disulfide.0 kilometers per liter* thanks to its newly developed 1.

Pressing the brake stops creep force. The newly developed CVT with torque converter increases driving performance from a standing start while a broad lock-up clutch helps increase fuel economy. driving at low speeds and driving uphill (the latter is made possible using an inclination sensor). This provides optimized creep control when idling. The Fit also features a new creep control system. .narrowed cam chain and an auxiliary belt automatic tensioner. slowing the car and moderating fuel consumption.

a cogeneration system that generates hydrogen from natural gas to provide heat and electricity for the home and fuel for a hydrogenpowered vehicle. Previous Home Energy Station systems were equipped with a separate purifier and fuel cell. In California. In FY2004 we began experimental operations of our Home Energy Station. . By unifying these components and introducing the ability to switch from hydrogen refining to power generation. beginning experimental operations in Torrance. California.Home Energy Station IV and solar cell hydrogen stations: experimental operation continues Home Energy Station IV Honda is moving ahead with research into hydrogen production and supply systems to promote the widespread adoption of fuel cell vehicles. A household with a Home Energy Station IV and an FCX Clarity could reduce its carbon footprint by approximately 30% and its energy costs by approximately 50% compared to a household driving a gasoline-powered vehicle and using conventionally generated electricity. which use solar energy to produce hydrogen from water. In 2007 we introduced the Home Energy Station IV. Honda is also continuing to develop its solar-powered Hydrogen Stations. the system¶s size has been reduced 70% compared to the first-generation model. the focus was placed on high efficiency and compactness. To make the new technology even more suitable for the average household.

the SDH 125-T23 is a carburetor-equipped scooter that complies with China¶s National Standard III emissions standards.The SDH 125-T23: complying with China's emissions regulations Introduced to the Chinese market in July 2007. which went into effect in July 2008. Its primary exhaust-cleaning technology consists of streaming the exhaust into two inline catalytic converters and introducing a secondary airflow between them. . This results in improved emission levels and an extremely clean-running vehicle. while the downstream catalytic converter oxidizes CO and HC. Ignition optimization and modifications in the structure of the carburetor have allowed for quicker startup operation of the catalytic converter. reducing emissions of these substances. The upstream catalytic converter reduces NOx levels.

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we have promoted the independence of our local management and sales operations.Global operations At 67 production facilities in 24 countries and at 43 research and development facilities* in 13 countries. integrated and forward-looking planning for each region. operates in accordance with shared conduct guidelines. Hiring associates and procuring parts and materials locally. In accordance with this policy. which comprises 507 companies worldwide. Our global operations have grown because Honda delivers genuine satisfaction and has a policy of manufacturing products close to the customer.000 Honda associates help some 24 million customers each year. The Honda Group. and engaging in philanthropic initiatives in the communities that host our operations. comply with laws and regulations. At the same time. These help member companies and their associates appropriately evaluate and manage risk. about 178. maintain a high level of transparency in business operations. as well as customer service. purchasing. automobile and power products production. Honda¶s global operations are divided into six administrative regions responsible for local operations. . administration and other areas. are overseen worldwide. to ensure optimal. and work as one to maximize customer trust and the value of the Honda brand. certain functions related to motorcycle.

2008 .As on march 31.

190 1.83 0 5 6 0 4 641.617 464.777 3 5 4 by region Oversea 6.14 12.213.681.05 9.958 668.980 457.087.Financial information (consolidated) March March March March 31.927 656.534.10 6. 2006 31.228 1.04 Sales Japan 1.967 467.002.99 11.162.694.10 9. 2008 8.338 486.585.95 10.805 814.385 551.950.841 600.741 373.699.628.039 Research & development expenditure (millions of yen) Capital expenditures (millions of yen) 448.650.033 792.754 510.322 895.417.405.49 1.959 287.847 587. 2005 31.841 597. 2007 Sales and income (million s of yen) Net sales Income before taxes Net income March 31.197 597.90 8.20 1.60 8. 2004 31.868 592.907.950 (million s 7 0 2 7 .

231 178.650.785 167.99 11.s of yen) Total 8.960 Number of employees .907.14 12.002.087.600 137.827 144.83 0 5 6 0 4 131.60 8.162.10 9.

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