(Photo by Kit Hubert on Flickr)
Honda CEO Takeo Fukui used his final address to stockholders in 2008 to offer a glimpse into the Japanese automaker’s future. Fukui mixed in good news with bad in last week’s speech, noting that gasoline and diesel vehicles will be continued at reduced capacity in 2009. In an effort to stay ahead of Toyota in the green vehicle market, Honda will focus on hybrid models and small cars to meet the needs of customers worldwide.
Fukui noted that Honda would press forward with its new Insight hybrid in 2009 along with an unnamed hybrid SUV that will be ready for sale by December 2010. Honda also plans to introduce a small vehicle more slight than the diminutive Fit that could be ready as early as 2012. Another novel vehicle in the works by Honda is an electric motorcycle to add to the company’s popular motorcycle line. This battery-powered motorcycle will likely hit the market by 2011 unless economic problems force Honda to reconsider its plans. The mixture of hybrid and small-frame vehicles allows Honda to increase its green production profile by decreasing raw materials used in new models.
Honda hopes to achieve these two goals by deferring planned expansions in domestic and foreign markets until economic waters have settled. Fukui stated that production facilities in Yorii and Yachiyo slated to start operation in 2010 would delay production until at least 2011. Honda’s plans to increase production capacity in high-demand markets like India and Turkey will be held off until 2010. For gearheads and racing fans alike, the news that Honda will discontinue its Formula One sponsorship after the 2008 season brings home the fact that the floundering market is hitting everywhere.
The current state of affairs in the global auto market will sort automakers into two camps: a camp of has-beens that will go green slowly and another camp that will be flexible enough to react to market changes in the short term. Honda’s plans may frustrate drivers who like sizable sedans and SUVs as well as racing fans but Takeo Fukui offers a blueprint for success in the future. Honda’s executives and designers are looking to conserve resources, allow drivers to find green-powered vehicles and apply clean technologies to overlooked areas like motorcycles and commercial machinery.
