<u>Honda's new president puts emphasis on quality cars, not fast sales growth</u>

TOKYO (AP) - Honda Motor Co. is going to focus on creating quality cars rather than pursuing quick growth in sales, the new president of Japan's No.2 automaker said Thursday.

"I'm not setting sales targets," said Takeo Fukui, who took office as president and chief executive last month. "All that may be convenient for the business but it's totally irrelevant to the customer."

He said Honda has no plans now to add plants in North America in the next several years and would concentrate on the ongoing capacity increase at its Alabama plant to 300,000 vehicles a year from 150,000 vehicles to meet growing demand.

Honda has assembly operations in Alliston, Ont., northwest of Toronto, that employ 4,200 workers making about 360,000 vehicles annually.

Under Fukui's leadership, Honda will refuse to aimlessly seek numbers in selling cars and will stick to pleasing the customer "one by one," Fukui said, accepting the results as they come.

Fukui acknowledged Honda had come under intense pressure to boost sales in the last several years because of the onslaught of mergers among the world's automakers aimed at gaining profitability and cost cuts through sheer size.

And that sometimes may have led Honda off what Fukui believes is its true track.

With the exception of Toyota Motor Corp., Honda's Japanese rivals have entered alliances with foreign automakers - Nissan Motor Co. with Renault SA of France and Mitsubishi Motors Corp. with DaimlerChrysler AG of Germany.

Honda will continue to go at it alone, said Fukui, a soft-spoken, diminutively built man who conveys a quiet seriousness.

"When all cars are starting to look alike, we are looking for qualities that make Honda distinct," he said in an interview at headquarters in Tokyo.

"Our company takes the basic performance of the car itself very seriously - the drive, the stop and the turn. The car has to be fun to drive. That's the root of our cars."

Fukui, 58, the former head of Honda's U.S. manufacturing operations, takes over at a time when Honda is doing booming business in all regions outside Japan, where it is losing to the Japan's No.1 automaker, Toyota, and a revived Nissan.

In the fiscal year ended March 31, Honda posted its highest profit in company history, a profit of 427 billion yen, the equivalent of $3.6 billion US and an 18 per cent increase from the previous year.

It sold 2.89 million vehicles for the fiscal year, up eight per cent from the previous year. But vehicle sales in Japan were down 3.3 per cent at 849,000, while they were up 11 per cent in North America at 1.5 million vehicles.

That trend has continued in recent months.

"Honda is stuck in a long winter as far as the Japanese market," said Masaaki Sato, who has written books on Honda. "If you can't sell cars in your own home market, that means Honda can't feel it's on sure footing."

Honda has produced hit models here, such as the Fit subcompact, but as rivals come out with similar models, Honda has had a tough time.

"The Japanese market is important," Koichi Amemiya, Honda executive vice president, told The Associated Press. "We can't let Toyota take all that alone."

Fukui said Honda will rely on technology to win back buyers although he refused to give details of what was in the works.

Honda is setting up new research centres in Japan, the United States and Germany, where it will study lighter material for car bodies, fuel made from plants and artificial intelligence, the company said Thursday.

"Presidents at Honda tend to have a common trait," said Nobuyuki Kondo, a Honda general manager. "They never forget to pursue a dream. And we just follow that."

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Hmmm - made record amounts of money and yet still behind in the JDM market.

&lt;nudge nudge&gt; hey guys! put a V8 in the NSX and bring over the Type Rs!

 

has to be fun to drive? I think they failed at that since the late 80s/early 90s with the exception of the S2K and ITR... (in the US market at least).

Maybe they'll produce some more FR or MR cars. That'd restore my faith in Honda

 

If they're concentrating on the JDM market, does it even matter to us? Sounds sorta like we'll get shafted again and get to hear about that V8 NSX but never drive it...

 

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD>Quote, originally posted by sscguy &raquo;</TD></TR><TR><TD CLASS="quote">Sounds sorta like we'll get shafted again and get to hear about that V8 NSX but never drive it... </TD></TR></TABLE>

Now, what kind of sense does that make? Why would they just stop bringing in a car that's been here for 12 years?

Honda has been damn good about bringing mostly every cool car they make over here, in one form or another.

 

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD>Quote, originally posted by sscguy &raquo;</TD></TR><TR><TD CLASS="quote">If they're concentrating on the JDM market, does it even matter to us? Sounds sorta like we'll get shafted again and get to hear about that V8 NSX but never drive it... </TD></TR></TABLE>

You have the attitude of, "well...what has Honda done for me?"

Frankly, I'd rather see Honda's overall worldwide success rather even if it means the usdm market will still not get their full jdm lineup.

V8 NSX huh? And I presume you have the $ to purchase one?

 

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD>Quote, originally posted by Ross &raquo;</TD></TR><TR><TD CLASS="quote">Now, what kind of sense does that make? Why would they just stop bringing in a car that's been here for 12 years?</TD></TR></TABLE>

Toyota and Mazda did it.

 

Quality, huh??? what about our tin can fenders that bend if you look at them wrong?

Or is this about future cars?

 

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD>Quote, originally posted by Mario &raquo;</TD></TR><TR><TD CLASS="quote">

You have the attitude of, "well...what has Honda done for me?"

Frankly, I'd rather see Honda's overall worldwide success rather even if it means the usdm market will still not get their full jdm lineup.

V8 NSX huh? And I presume you have the $ to purchase one? </TD></TR></TABLE>

Well of course. Who gives a rat's *** about their success. I don't. If they bring all the "good" models and trim levels to every market they'll have a better chance of being successful. They are #2 in Japan, and they would be #2 or worse here (of japanese imports) if the other companies brought over their good cars. Honda isn't all that, far from it.

=

 

ITR is a far cry from the typical automobile...and the sales numbers (and production number) show that.

Few companies want to take a gamble on selling a vehicle that "isn't quiet" and they also have to be mindful a plethora of other circumstances. Even the ITR is a compromise of sorts...a radio, suede seats?!? It would be cool to have a car that is completely customizable from the ground up. Want aftermarket seats? Don't pay for factory ones..., etc.

 

The Japanese always copy the Germans.....just another case.

 

I hope this guy knows what the Fukui he's doing...

 

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD>Quote, originally posted by Padawan &raquo;</TD></TR><TR><TD CLASS="quote">

Toyota and Mazda did it. </TD></TR></TABLE>

I was defending Honda here, and no one else.

 

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD>Quote &raquo;</TD></TR><TR><TD CLASS="quote">Frankly, I'd rather see Honda's overall worldwide success rather even if it means the usdm market will still not get their full jdm lineup.
</TD></TR></TABLE>

Sorry, but the USDM market is the biggest in the world. Honda damned well better take it into account.

Subaru and Mitsubishi sure do.

 

I know I'd probably never buy another Honda car...maybe an NSX but that's about it.

 

Honda definitely needs to do something. After buying nothing but Honda's for 13 years, I now own two Subarus. Honda didn't have real competition for either car.

 

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD>Quote, originally posted by Tweakmeister &raquo;</TD></TR><TR><TD CLASS="quote">I know I'd probably never buy another Honda car...maybe an NSX but that's about it.</TD></TR></TABLE>

me too!!

 

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD>Quote, originally posted by bps2799 &raquo;</TD></TR><TR><TD CLASS="quote">

Sorry, but the USDM market is the biggest in the world. Honda damned well better take it into account.

Subaru and Mitsubishi sure do.</TD></TR></TABLE>

I'm willing to bet we'd see Ford's 300hp AWD Cosworth Focus before we see anything mind blowing from Honda again... besides I'd rather have the Cosworth.

 

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD>Quote, originally posted by bps2799 &raquo;</TD></TR><TR><TD CLASS="quote">

Sorry, but the USDM market is the biggest in the world. Honda damned well better take it into account.

Subaru and Mitsubishi sure do.</TD></TR></TABLE>Typical America-centric thinking...

 

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD>Quote, originally posted by jim &raquo;</TD></TR><TR><TD CLASS="quote">Honda definitely needs to do something. After buying nothing but Honda's for 13 years, I now own two Subarus. Honda didn't have real competition for either car.</TD></TR></TABLE>

I don't think Honda will be able to produce any competition (at least HP wise) to makes like Subaru and Mitsu with everybody going FI nowadays.

 

everyone going FI is the US's perception...actually the current trend is to go NA. Toyota's new supercar is rumored to be non-turbo and Nissan's Z-car and Skyline are roumored to also stay NA and go larger displacement.... The NS-X will obviously stay NA (only the really lowend cars in the line-up will get turbo engines)

Only reason why Mitsu ans Subaru are staying turbo is because the rally class that they compete it regulates a 2.0L engine. NA 2.0L is not powerful enough for what they do.

 

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD>Quote, originally posted by MiraiZ &raquo;</TD></TR><TR><TD CLASS="quote">Typical America-centric thinking... </TD></TR></TABLE>

No, it's called "good business."

Tell me how smart it is to blow off the US for a country of less than half the size, where folks don't have as high an ownership rate for cars?

FWIW, Let's include Europe in there too. I wonder how many people own cars there? the population is greater than the US, but I'd say that there are far fewer vehicles on the road, both in total and on a per capita basis.

If this is America-centric thinking, then thank God I don't live in some crappy country where they drive on the wrong side of the road, eat what I use for fishing bait, and pay thousands of US dollar equivalents to live in tiny apartments where they roll up the bed every AM to have a place to sit - never mind that the economy has gone down the tubes for thae last decade and is way worse than what we in the US are experiencing.

 

I appreciate that Honda made and brought the DC2R to the US, and the NSX has been here, but none of the special or even different editions of it have been imported here. NSXR, NSX: Zanardi Edition or whatever, nothing. As far as I'm concerned, that's all Honda has to offer me, and that's not too terribly different from a number of other automotive companies offering hot-rod stock models. Given that, why should they stand out? Reliability? Toyota is just as reliable.
And I don't have the money for an NSX, but what does it matter? I can only appreciate cars I can afford? If that's the case, that's pretty damn stupid.

 

I hate to nit-pick, but we did get the Zanardi edition, AKA "NSX Type S-Zero" in Japan.

The only cars that Honda really did not bring are the NSX-R and the Accord R. The EK9R didn't come, but the EP3R will.

I hate to disagree, but Honda really hasn't given us that much to complain about.

 

I'd rather have an Accord R than the TSX, provided it has the euro styling and not this ugly stuff they dump on the US with the USDM accord.

 

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD>Quote, originally posted by bps2799 &raquo;</TD></TR><TR><TD CLASS="quote">If this is America-centric thinking, then thank God I don't live in some crappy country where they drive on the wrong side of the road, eat what I use for fishing bait, and pay thousands of US dollar equivalents to live in tiny apartments where they roll up the bed every AM to have a place to sit - never mind that the economy has gone down the tubes for thae last decade and is way worse than what we in the US are experiencing. </TD></TR></TABLE>

What an excellent retort.

You sound so worldly and intelligent.