Honda Motor Company Limited : The new hero of Japanese auto-Industry

You can call it a windfall gain or simple luck but like it or not Japan’s second largest automaker Honda Motor Company is now at its peak. Where car makers around the world are grappling with rising cost of fuel and raw materials, Japan’s second largest automaker is making profits. What is the secret behind this success? Well, there is nothing. The whole situation just went to Honda’s favor. In this series I will be focusing Honda Motor Company, its background and major products.

Company Background:
Honda Motor Company Limited (TYO: 7267) is a multinational corporation. Headquartered in Japan, the company is an engine manufacturer and engineering company. Honda is the 5^th largest auto-maker in the world and the second largest in Japan. Every year, the company produces more than 14 million internal combustion engines. Its products include: cars, motorcycles, trucks, scooters, robots, jets and jet engines, All Terrain Vehicle (ATV), water craft, electrical generators, marine engines, lawn and garden equipment, and aeronautical and other mobile technologies. Along with these products Honda has now started producing luxury cars and mountain bikes.

Shares:
Honda shares are traded around various stock exchanges around the world. For example, Tokyo Stock Exchange, New York Stock Exchange. Other major stock exchanges include: Osaka, Nagoya, Sapporo, Kyoto, Fukuoka, London, Paris and Switzerland.

Head quarters and joint ventures:
Honda Motor Company’s main head quarter is situated in Tokyo Japan.

The United States of America:
American Honda Motor Co. is situated in Torrance, California.

Canada:
Honda Canada Inc. is situated in the Scarborough district of Toronto, Ontario. The company is building its new headquarters in Markham. The manufacturing facility is situated in Alliston, Ontario.

India:
Honda has a joint venture with the Hero Group of India. Currently, Hero Honda is the largest two-wheeler manufacturer in the world. Honda has also other joint ventures in India such Honda Siel Cars India Ltd,

Soichiro Honda:
The story of Honda Motor Company would be incomplete with Soichiro Honda, the founder of Honda company, the man who single handedly change the history of two-wheeled vehicles that you ride today.

Born on November 17 1906, at Komyo Village, which is now known as Tenryu City, to Gihei Honda and his wife Mika. Soichiro Honda had a fascination about machines since childhood. Gihei Honda was a blacksmith and his wife was a weaver. Despite poverty, Gihei instilled the ethic of hard work and love for machines into Soichiro. There was a rice mill in Yamahigashi that ran on a small engine. As a child, the sound of the motor fascinated Soichiro. Since his childhood, he used to work with various mechanical tools.

At the age of 15, without any formal education, Soichiro Honda came to Tokyo and obtained apprenticeship at a garage in 1922. It was a hard time for him. He moved around here there. Finally, at the age of 22, he started his own auto business. In 1937, Soichiro started to produce piston rings for small engines. In 1948, he established Honda Motor Co. Ltd. to build small capacity motor cycles. From there, he turned Honda Motor Company into one of the biggest auto-makers in the world. Soichiro Honda died from liver failure in 1991.

Honda wining Japanese auto market:
Till now, Toyota Motor Corporation used to be the top automobile seller in Japanese auto-market but the reign of Toyota is coming to an end. For the last eight month, Honda Motor Company has remained in the top position in passenger car sales. Honda’s Fit compact is now the most popular passenger career. According to the data of Japan Automobile Dealers Association, In June, sales of Fit compact rose 77% to 14,702 units. Toyota’s Corolla made it to the second and third position with Toyota Corolla and Vitz. Bloomberg reports:

Demand for the Fit and new Freed minivan boosted Honda's domestic sales, excluding minicars, by 4.1 percent last month. The latest version of the Fit, introduced in October, helped Tokyo-based Honda end the Corolla's four-year reign as Japan's bestselling car model in the year ended March 31.

Honda winning the USA auto market:
The USA is the biggest auto market in the world. After price gas rose to $4 per gallon, consumers started to shift their attention to small fuel efficient car where Honda is the pioneer. Even its major Japanese competitor Toyota Motor Corporation is incurring losses in the USA. SF Gate reports:

The No. 2 Japanese automaker, with the most fuel-efficient model lineup in the industry, never put both feet into the U.S. truck market, focusing instead on slow-but-steady growth with popular cars such as the Civic and the Accord.

It paid off in June. While its major competitors reported double-digit declines in sales and burgeoning truck and sport utility vehicle inventories, Honda had a modest 1 percent sales increase. Its car sales were up almost 20 percent from the same month last year; the Civic and the Accord were among the industry's top sellers.

John Mendel, Honda Motor Company’s executive vice president said that they were not geniuses but they were consistent. Auto industry analysts pointed out two reasons behind Honda’s success. One, they have a good line-up of small fuel-efficient vehicles and their factories are very flexible. They can produce more vehicles if necessary.

Poor conditions of American manufacturers:
When it comes to American manufacturers, three come to mind: General Motors, Chrysler, and Ford. All these companies produce large vehicles like pickups, SUVs which are now shunned by the US-consumers. More than half of the factories owned by these three companies produce trucks. With the rising price of oil, the US car market now consists of 56% cars and 44% trucks. This has resulted into huge sales drop. Now the three companies are planning to shut down many of its factories. Their condition is so bad that they could not even switch to producing large amount of small fuel efficient vehicles in the short term. Share prices of the companies dropped as well. Now, they have nothing but to prepare to accept a huge loss in their business.

Related articles:
http://world.honda.com/

Wikipedia

2009 Honda FCX Clarity: Over hyped Hindenburg!

‘The car that emits nothing but water’, ‘solution to fuel problem,’ and so many things! I was carried away for some time and started to think that this time the world will truly become a better place but my dream bubble just got busted. The new Honda FCX Clarity started with big bang but ended up in whims. For the last couple of days, what Honda Motor Co. Ltd. (TYO: 7267)has been touting as the ultimate solution to pollution free transport proved to be nothing but a public stunt. Now, the million dollar question is WHY?

First, production of Hydrogen requires lot of electricity. How do you produce that electricity? by burning fossil fuel. This takes us back to square 1.

Second, hydrogen is not widely available. Production of hydrogen in large quantity is not profitable. In the first reason, I have already explained why? Then why building hydrogen fuel cars?

Third, Honda is saying that electric plug in vehicles are not so good because they have lower mileage and the battery has limited power. True, but the electricity is more available than H₂. Then why going for expensive hydrogen cars? Criticizing New York Time's article on 2009 Honda FCX Clarity, Guardian says:

Is the Times unaware that electric-car manufacturers are working on "exchangeable batteries", which would make a battery swap about as fast as it takes to refuel a car with hydrogen?

Related articles:
Guardian

CNet News.com

The Seattle Times

The Independent

Honda Motor Company observes increased sales amidst economic slowdown and rising fuel price

In the middle of sub-prime economic crisis and high fuel price in the USA, Japan’s second largest auto maker Honda Motor Company Limited (TYO: 7267) is observing a consistent rise in its car sales. This is truly a big achievement for the company. In an email to the analysts, the company said that the company’s US sales in the first 20 days of June 2008 was higher than last year. Thanks to its latest models of fuel efficient small vehicles.

The email said that Honda’s total sales in the USA rose by 16% in the first 20 days of June. However, Chris Martin, Honda spokesperson could not confirm the email. Honda is among the top five automakers that has observed increased sales in the USA this year. The $4 per gallon gasoline has forced consumers to buy fuel efficient vehicles. Like other USA automakers, Honda does not depend heavily on large vehicle sales. Truck sales makes up less than 40% of its total vehicle sales. The Sydney Morning Herald reports:

''Honda may raise its profit forecast at the half-year point,'' said Takashi Aoki, who helps manage about 130 billion yen at Mizuho Asset Management. ''It may also increase production capacity for the Civic and Accord.''

Through May, Honda's US sales gained 4.8%, compared with an industry decline of 8.4%, according to Autodata. Last month the Civic was the top-selling vehicle in the US, besting Toyota's Corolla and Camry sedans.

The email further says that Honda civic, Honda Accord and Honda Fit are the top selling models of the company. However, sales of the light truck models are down due to fuel crisis and economic slowdown. The car sales went up by 37%.

According to Detroit based Honda spokesman, Chuck Schifsky, the demand of Honda Civic is so high that the company is facing a very tough time to meet the demands.

Related articles:
Bloomberg

Sydney Morning Herald

After Honda FCX Clarity, Honda launches fuel-efficient rail cars that emit less CO2

After taking the roads and highways, it is time to take the railways. Yes, American Honda Motor Co. Ltd is now planning to introduce fuel efficient rail cars. The Ohio based Japanese auto-giant announced to deploy a new fleet of Auto-Max rail cars. These railcars can hold up 22 cars and trucks. The 400-car carrier decreases fuel costs per vehicle and reduces CO₂ emissions. Biz Journals.com reports:

Honda's bi-level rail cars, by comparison, can move up to 10 trucks and only carry one vehicle at a time.

Ed Miller, a Honda spokesman, said another key feature of the railcars, designed by Lake Oswego, Ore.-based freight manufacturer Greenbrier Cos. (NYSE:GBX), is their fully enclosed design, which cuts down on shipping problems over long distances. Some vehicles produced in Marysville, for example, travel 3,000 miles.

In 2007, the USA Honda Motor Company Ltd. produced one million vehicles and transported every four out of five by rail. It spent about $7 million to redesign the infrastructure of its new railcars at its Marysville and East Liberty plants.

In the USA, Honda played a major role in increasing rail capacity and made it possible for railcars to move faster and reduce idle times during which it emits highest amount of CO₂.

Related article:
Biz Journals.com

Hybrid Prius, Hydrogen powered car and the new after market kit from A123 Systems

It looks like the auto arena has become a major battle ground of two BIG “H;” Honda’s Hydrogen vs. Toyota’s Hybrid. Who do you think deserve most lime light? If you ask me then my answer will be, I do not know.

By this time, I think all the readers who are reading/not reading this blog, know about the 2009 Honda FCX Clarity, the hydrogen fuel-cell car.

Toyota’s hybrid caught the attention of media after the price of oil started to rise and American people for the first time got the hit of high oil prices. Now, it takes very small time for the Toyota Prius to hit the show room and getting sold. Dealers all over the USA are just observing their Toyota Prius waiting list getting longer day by day. Last month, Toyota Motor Corporation (TYO:7203)) declared that by the end of April it sold about 1,028,000 Prius cars. Now, they have set a target of selling one million vehicles per year after 2010.

Toyota also declared two new hybrid models that will be powered by lithium-ion battery. Masatami Takimoto, Head of R&D, Toyota Motor Corporation, said that one of the new vehicles is going to be a new design and it would be larger than Prius and released under the Lexus Brand in 2010. The other car, a production of version of Toyota’s “iQ microcar”, is a 10 feet long small city car for four passengers.

Battery technology company, A123Systems, has begun selling its new aftermarket kit which can convert the Toyota Prius hybrid into a Plug-in hybrid and increase fuel-efficiency to more than 100 miles per gallon. The kit’s retail cost is under $10,000 and includes installation at select dealerships.

Related article:

Sustainable Business

Reuters

Will Honda FCX Clarity be the ultimate transport solution of the future?

Like a big python, the high price of fuel coiled the world economy and squeezing out every chance of growth. From the top economies to the poorest region, every one is suffering from high fuel prices. At the same time, major environmental changes and green house effects have changed our lives. At such a critical stage, Honda Motor Company may have been able to bring a sigh of relief among people. The new Honda FCX Clarity is going to hit the road next month. A car that runs on hydrogen and emits no CO₂ but water seems to be the ideal car for every one. However, there is a catch. The car is not still available for the mass market. It comes with a high price tag.

Still, the good thing is people in developed countries have started using vehicles that are fuel efficient and emits less CO₂. The revolution has already started in the United States of America. Major US automakers like Ford, Chrysler, GM are now focusing on building small fuel efficient vehicles and hybrid and electronic vehicles.

Now, the million dollar question is, can cars like Honda FCX Clarity change people’s demand of oil? At this stage, that is a big ‘No.’ The demand of oil will still remain high as more and more countries are moving towards industrialization. In addition, there are many products around us that require petroleum to produce such as plastic. It would take a lot more to divert people from using oil as the major source of energy but Honda FCX Clarity is the symbol of hope. It shows that if we try we can change ourselves and enrich our lives and the lives of others.

Related article:

The Record

The 2009 Honda FCX Clarity : The hydrogen fuel-cell car from Honda Motor Company Ltd.

Honda Motor Company Ltd. (TYO: 7267) has made a big leap towards developing environment friendly car. The 2009 Honda FCX Clarity is the first fuel-cell car of the world. Honda Motor Company was also the pioneer of gas-electric hybrid. Now, they have brought out the first car that produces nothing but steam. It is truly a car of the future.

Dimension:
Wheelbase. . . . . . . . . .110.2 inches
Length. . . . . . . . . . . . 190.3 inches
Height. . . . . . . . . . . . .57.8 inches
Width. . . . . . . . . . . . . 72.7 inches
Track (front/rear). . . .62.2 / 62.8
Curb Weight. . . . . . . . .3582 lbs.

• The 2009 Honda FCX Clarity is a dynamic full-cabin sedan. Automobile mag says:

The FCX handles like a well-composed family car. But easily distracted drivers might be mesmerized by the multi-color power meter gauge in the center of the dashboard, especially a ball that grows alarmingly and changes color as fuel mileage dwindles. (Note to self: See if mashing the throttle down long enough will cause the ball - and the car - to self-destruct to prevent further environmental irresponsibility.) Driven properly, the FCX is expected to deliver the equivalent of 68 mpg and zero tailpipe emissions.

• The front end of the 2009 Honda FCX Clarity comes with a 6-sided grille.
  

• The 2009 Honda FCX Clarity comes in a sophisticated rich color called Star Garnet Metallic.
  

• The hood, trunk, doors and fenders of the 2009 Honda FCX Clarity are made of aluminum.
  

• The wheels of 2009 Honda FCX Clarity have ultra-lightweight 5-spoke forged aluminum.
  

• The front and rear sub frames of 2009 Honda FCX Clarity are made from extruded aluminum.
  

• A significant portion of the seating material of the 2009 Honda FCX Clarity comes from plants.
  

• The 2009 Honda FCX Clarity seat covers are made of environment friendly Honda bio-fabric. Conventional polyester are made from petroleum but Honda bio-fabric provides a CO2 reduction of 30% compared to polyester. The bio-fabric is highly elastic and very silky, durable and soft to the touch.
  

• The seats of the 2009 Honda FCX Clarity are individually contoured to complement human form. The seats also have heating and cooling facility. There is also a rear center console which serves as tray table.
  

• The 2009 Honda FCX Clarity comes with front and rear door pockets to stash you stuff.
  

• The 2009 Honda FCX Clarity comes with Satellite Linked Navigation System with voice recognition and rearview camera. It is not available in all the FCX Clarity powertrain. The navigation system is available in the USA; except Alaska.
  

• The 2009 Honda FCX Clarity comes with XM® Radio and MP3/auxiliary input jack in the center console. Honda official website says:

Required XM® Radio monthly subscription sold separately after 90-day trial period. Installation costs and other fees and taxes may apply after initial trial period, including a one-time activation fee. Subscription fee is consumer only. All fees and programming subject to change. Subscriptions subject to Customer Agreement available at xmradio.com. XM service only available in the United States except Alaska. The XM name is a registered trademark of XM Satellite Radio Inc.”

• The 2009 Honda FCX Clarity comes with a multi-layered instrument panel. The hydrogen-consumption gauge changes color and size to show the level of your hydrogen consumption as driving conditions change. During high consumption the ball becomes large and amber colored. In case of low consumption, it shrinks and turns yellow then blue.
  

• The 2009 Honda FCX Clarity comes with USB audio interface. Honda official website says:

The USB Audio Interface is used for direct connection to and control of some current digital audio players and other USB devices that contain MP3, WMA, or AAC music files. Some USB devices with security software and digital rights-protected files may not work. Please see your dealer for details on compatibility.

Performance:

• Honda has given equal emphasis on performance of the 2009 Honda FCX Clarity. Motor Trend says:

the Clarity's fuel-cell stack is located under the driver's right arm, is 65 percent smaller by volume, packs 17 percent more power (100 kW or 136 horses), and it can start at temperatures as low as -22 degrees F (owed to its vertical, gravity-drain water path). Combined with its co-axial and compact motor/gearbox up front, lithium battery pack under the rear seat, and single, 5000psi storage tank behind the rear passengers, the Clarity is brilliantly laid out. Interior space is generous, particularly its rear passenger legroom, and trunk volume is commendable.

• The 2009 Honda FCX Clarity is powered by both fuel cell and electric motor. Alternative fuels.about.com says:

The fuel cell stack works in conjunction with an electric motor that spins up to 12,500 rpm, and is bundled into a single unit with the gearbox. Regenerative braking charges up advanced lithium ion batteries which power the electric motor, and the system works together to produce a total of 134 horsepower and 189 ft-lbs of torque. The FCX Clarity achieves the hydrogen equivalent of 68 mpg combined, with a total cruising range of 270 miles, and its only emissions are water vapor.

• One of the great features of the 2009 Honda FCX Clarity is that you do not need any keys to start the vehicle. All you have to do is just push the start button. Business Weeksays:

Step on the throttle and you're likely to be surprised by the Clarity's aggressive launch. The system produces 100 kilowatts of power, with a modest additional assist from the onboard batteries, which operate much like those in today's gas-electric hybrids. ……From 0 to 30 mph, the FCX delivers some serious acceleration. It slacks off as you approach highway speed, but that doesn't mean it's a slouch. We were able to easily merge onto the congested I-10, in Santa Monica , and quickly soared to near 90 mph. Certainly, around town, the FCX Clarity will keep up with traffic.

Safety features:

• The 2009 Honda FCX Clarity comes with Six airbags.
  

• The 2009 Honda FCX Clarity has anti-lock braking system (ABS).
  

• The 2009 Honda FCX Clarity has Even Vehicle Stability Assist.
  

• The 2009 Honda FCX Clarity has Electronic Brake Distribution (EBD) systems.
  

• The 2009 Honda FCX Clarity passed all the tests required by U.S. safety standards.
  

• The 2009 Honda FCX Clarity comes with omni-directional crash protection system to protect the hydrogen and electrical devices inside the car in times of crash.
  

• The 2009 Honda FCX Clarity comes with Honda’s newly improved Collision Mitigation Braking System (CMBS). Introduced in 2003, CMBS can detect potential collisions. In case of unavoidable collision, front seat belts automatically retract and braking force reduces the vehicle's speed.

Related articles:
Autobloggreen

Motor Trend

Automobilemag

Business Week

Alternative Fuels

FCX Clarity official website

Honda

Hondafuel-cell

zeroemission

HondaFCXClarity