Honda Motor Co. has announced the development of a new global small car and three new automobile engines-one gasoline and two diesel engines - as part of a strategy that Honda President and CEO Hiroyuki Yoshino says will strengthen Honda's European operations. Honda's plans also include further improvements in its European manufacturing facilities.
Key to the new strategies -- which also includes Honda's motorcycle and power products businesses -- is the introduction of a new "B category" global small car in Japan next month, and in Europe and Asia from early 2002, that will feature an all-new 1.3-liter "i-DSI" (Dual & Sequential Ignition) gasoline engine. When combined with Honda's newly developed CVT (continuously variable transmission), the i-DSI engine, which is the latest addition to Honda's next-generation "i" series of gasoline engines, achieves the world's top level fuel efficiency of 23 kilometers per litre in this new vehicle (determined by in-house testing based on Japan standard).
Another key is the introduction of two new diesel engines into the "C" and "D" segments of the European market: * A 1.7-litre Isuzu-made diesel engine will come to Honda as the result of an agreement signed this month between Honda and Isuzu Motors Limited, which results from the mutual engine supply agreement signed with GM in late 1999. To be installed in the U.K.-built Civic, the fuel efficient, low emission diesel engine was newly developed by Isuzu and is to be made by its plant in Poland.
Honda is also developing its own 2-litre class diesel engine-based on a prototype first shown prior to the 1999 Tokyo Motor Show-that is planned for installation in the next-generation European version of the Accord in 2003. Based on Honda's own engine technology, Honda is developing this new diesel engine with the support of Isuzu's diesel engine expertise as part of the new agreement with Isuzu Motors. "By adopting these strategies and optimizing the total performance of our three product businesses-motorcycle, automobile and power products-we plan for our European business to return to profitability in the fiscal year ending March 2003. This is currently our top priority in Honda," says Yoshino.
In moves to improve the capacity utilization ratio at Honda of the U.K. Manufacturing (HUM) in Swindon, United Kingdom, Honda also announced plans to focus the factory on the production of models based on Honda's Global Compact Platform-including the Civic series and CR-V-in order to achieve lower new model investments and higher production efficiency. In a further effort to maximize efficiency, production of the next generation European Accord will be consolidated in Japan with production of the Japanese version Accord. In summer 2001, HUM's second U.K. auto plant comes on line, increasing annual capacity to 250,000 units. To optimize use of this capacity, HUM will join the Honda Global Product Supply Network by first starting exports of the Civic 3-door to Japan in autumn 2001 and to North America early next year. The next-generation CR-V export to North America will also begin early 2002. "These strategies further demonstrate the flexibility and efficiency gained through our New Manufacturing System and Global Product Supply Network," said Yoshino.