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Summary of Honda CEO Speech on Automobile Business Direction - May 8, 2019


Direction for the electrification of our automobile products

  • Striving to realize a carbon-free society, Honda set a goal to electrify two-thirds of our global automobile unit sales by 2030.
  • When we talk about the introduction of electrified vehicles, there are two perspectives. One is the improvement of fuel economy, and the other is zero emissions. Regulations for the Corporate Average Fuel Economy (CAFE) standards are becoming increasingly stringent in every country around the world and complying with CAFE standards is one of the most important challenges for the automobile industry. At Honda, in light of the required infrastructure and how people use automobiles, we believe that hybrid technology is, at this moment, the most effective way for us to comply with CAFE standards. Therefore, we will electrify our products mainly with hybrid technologies. By increasing sales of our hybrid models all around the world, Honda will contribute to the global environment through the improvement of fuel economy.
  • To this end, we will expand the application of our 2-motor hybrid system to the entire lineup of Honda vehicles. In addition to the 2-motor hybrid system which is compatible with mid-to-large-sized vehicles, we developed a new, more compact 2-motor hybrid system suitable for small-sized vehicles. This small-sized 2-motor hybrid system will be adopted first by the all-new Fit which we are planning to exhibit as a world premiere at the Tokyo Motor Show this fall.
  • In addition to the expansion of the lineup of products equipped with the 2-motor hybrid system, we also will expand the application of the 2-motor hybrid system on a global basis. With that, by 2022, we are expecting to reduce the cost of the 2-motor hybrid system by 25% compared to the cost of this system in 2018.
  • As for zero emission vehicles, with our battery EVs we will comply with the Zero Emission Vehicle (ZEV) program being adopted by California and other states in the U.S. and China's New Energy Vehicle (NEV) mandate. We will efficiently introduce our battery EVs to the market by selecting the most appropriate partners and resources to satisfy the different needs in each region.
  • In North America, we will jointly develop battery components with General Motors and introduce highly-competitive battery EVs in the market.
  • In China, in order to keep up with the fast speed of electrification, we have already begun introducing battery EV models developed together with our local joint venture companies in China. While envisioning the introduction of battery EV models from the Honda brand, we will continue utilizing local resources in China and introduce more battery EV models in a timely manner to fulfill local market needs in China.
  • In Europe and Japan, we will introduce the Honda e, a new battery EV model, which was recently introduced as a prototype at the Geneva Motor Show.
  • To summarize, Honda will popularize and improve the business feasibility of electrified vehicles by focusing on hybrid vehicles and battery EVs
Cheaper Insight by 2022 with mid-gen Insight refresh due to 25% cost reduction of 2-motor hybrid system? :surprise:
 

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I'd love to see a ~50 MPG CR-V or HR-V. The Kia Niro just wasn't for me.

It is exciting to see another major automaker meet the challenge of a reduced carbon economy.
 

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Discussion Starter #3
I'd love to see a ~50 MPG CR-V or HR-V. The Kia Niro just wasn't for me.

It is exciting to see another major automaker meet the challenge of a reduced carbon economy.
Honda revealed that on the NEDC European test loop, the front-drive CR-V Hybrid manages to get 44.4 mpg combined, and the all-wheel-drive version gets 42.8 mpg.

Those are impressive numbers, but it should be noted that if the CR-V Hybrid were tested using U.S. EPA methods, the fuel economy would probably be worse. On the gas-powered, all-wheel-drive CVT CR-V that's available in the U.S., for example, there's about a 12 percent difference between the NEDC and EPA combined fuel economy ratings. As such, we can estimate that the CR-V Hybrid might earn an EPA rating of around 39 mpg combined for the front-drive model, and between 37-38 mpg for one with all-wheel drive. https://www.autoblog.com/2018/11/19/2019-honda-cr-v-hybrid-fuel-economy-more-revealed-for-europe/
^The European/Japanese Honda CRV Hybrid gets about 39mpg.
 

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I'd like to see a Honda Insight with a larger battery that could provide, say, 5-10 miles on EV. That's cover most of our short errands. Non-plug-in, naturally.
 

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I'd like to see a Honda Insight with a larger battery that could provide, say, 5-10 miles on EV. That's cover most of our short errands. Non-plug-in, naturally.
The Clarity Plug-in Hybrid is sort of similar to an Insight with a bigger battery. It uses the same 1.5L gas engine as the Insight but with a more powerful electric drive motor. You don't have to plug it in but the car is going to struggle filling up the larger battery. I think the same problem will happen if the Insight has a 5-10 mile battery instead of the 47 mile battery in the Clarity. Extra weight, redesign of the car to fit the bigger battery, and the gas engine being on longer probably will result in lower MPG than the current Insight. The Clarity Plug-in Hybrid gets 42mpg combined when running on the 1.5L gas engine.
 

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As Honda preps for these upcoming plans for global "Honda Architecture" platform announced in May 2019 (first post in thread), the CEO came down hard on suppliers recently over a 2-day meeting - emphasizing quality, common parts and more streamlined offerings.

Quality errors and recalls have reduced Honda's profit margin to just 2-3%, yet Honda R&D spending continues to be almost double that of Toyota. And Honda's brand image, as measured by JD Power Dependability Study, has dropped from a peak of #5 to a low of #18 over just the past 5 years.

https://www.reuters.com/article/us-honda-quality-insight/insight-hondas-hachigo-seizes-the-wheel-as-quality-crisis-hits-profits-idUSKBN1YD2DP
 

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Honda has too many trim levels and variations between regions for the same vehicle. They sort of got it right on the Insight in the US with 3 trim levels but then gave Canada and Mexico different options. Japan has a totally different Insight even though all 4 Insight variations are coming from the same factory.
 
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