Honda Reinforces Its European Operations
- Includes New Global Small Car and Three New Automobile Engines -
TOKYO, May 18 Honda Motor Co., Ltd., today announced the
development of a new global small car and three new automobile engines-one
gasoline and two diesel engines-as part of an ambitious strategy that Honda
President and CEO Hiroyuki Yoshino said will strengthen Honda's European
operations. Honda's plans also include further improvements in its European
manufacturing facilities.
New Small Car with a New Gasoline Engine
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 liter in this new vehicle
(determined by in-house testing based on Japan standard).
Diesel Engines
Another key is the introduction of two new diesel engines into the "C" and
"D" segments of the European market:
* A 1.7-liter 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-liter 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," said 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.
Motorcycle Business
Honda's ambitious plans for its motorcycle operations in Europe include
new products and expansion of the New Manufacturing System for motorcycles to
the company's European plants. With plans to launch 25 new models by the end
of the fiscal year ending March 2004, Honda has set its European sales
forecast for that year to increase by 30%, to 450,000 units, from the fiscal
year ended March 2001. Included is the launch of several large size
motorcycles, several mid-size models and new scooter models.
Honda will also create a more efficient and flexible production system at
its motorcycle plants in Italy and Spain, increasing the capacity utilization
ratio and raising the ratio of locally produced motorcycles to 60% by the
fiscal year ending March 2004. Further, Honda will use its Global Product
Supply Network to, for the first time, supply Euro markets with small
displacement motorcycles from Honda plants in developing nations.
Power Product Business
Just as with motorcycles, Honda will expand production in Europe of power
products, including general-purpose engines in Italy, and new walk-behind lawn
mowers and hedge trimmers in France. This will increase the percentage of
locally-built products to 40% from the current 30%. Production efficiencies
will also be obtained through the synchronization of engine production in
Italy with product assembly in France.
Honda also plans to expand its acing activities in Europe. To commemorate
the recent achievement of Honda's 500th World Grand Prix championship race,
Honda plans to show for the first time a brand new V-five 4-stroke engine, to
be used for the future WGP races, at Spain's Catalunya Circuit on June 16.
Honda will also continue to participate in the Superbike, Trial and other
motorcycle competition series in Europe, as well as the Formula 1 Grand Prix
auto racing series.
Finally, Honda remains on track to achieve its ambitious global sales
target -- first announced one year ago in May 2000 -- to achieve total annual
sales of 16 million products by the fiscal year 2004. Further, Yoshino said
Honda might achieve record revenue and net profits during the current fiscal
year -- two years ahead of the original schedule.
In its first year toward the global sales objective, sales of Honda
motorcycles, automobiles and power products reached a new record of over
11.58 million units in the recently completed fiscal year ending March 31,
2001.
Honda designs, manufactures and markets automobiles, motorcycles and power
products worldwide. Honda is the largest engine maker in the world, producing
more than 11.5 million engines annually for its three product lines. Honda
also builds products in over 100 manufacturing plants in 31 countries,
employing more than 125,000 associates globally.
Honda Develops a Next Generation, 1.3-liter, 4-cylinder i-DSI Engine
- Offers High Performance, Record Fuel Efficiency and Low Emissions -
TOKYO, May 18, 2001 -- Honda Motor Co., Ltd. today introduced the all-new
1.3-liter, 4-cylinder "i-DSI" -- the latest in Honda's next generation of
"i-series" engines. A lightweight, compact, high-performance engine, the
i-DSI offers ample horsepower and torque at all ranges, using intensive
combustion to achieve a combination of ultra-high fuel efficiency and clean
emissions. The i-DSI -- for "Dual & Sequential Ignition" - will be installed
in a new small car, scheduled to be unveiled in June, 2001.
The engine is equipped with two spark plugs in each of its newly-designed,
compact combustion chambers. These sparks are activated in a different order
depending upon engine revving and load resulting in intelligent, dual-point
sequential ignition control to achieve intensive fuel combustion at all
ranges.
Two spark plugs per cylinder are arranged diagonally to accelerate flame
propagation in the combustion chamber, thus achieving rapid combustion of the
air-fuel mixture and high output from a minimum amount of gasoline. This
intensive combustion at all ranges not only controls knocking, but also
permits a much higher compression ratio, achieving a maximum output of
63kW (86PS) at 5700 rpm, and maximum torque of 119Nm (12.1kg-m) at 2800 rpm.
The engine is paired with Honda's newly-developed, lightweight, compact
Multimatic S continuously-variable-speed transmission (CVT), which minimizes
engine power loss to achieve ultra-high fuel efficiency of 23 kilometers per
liter (determined by in-house testing based on Japan standard) -- among the
world's best for a gasoline powered production vehicle, and compliant with
2010 fuel efficiency standards. Furthermore, harmful exhaust emissions have
also been greatly reduced: the i-DSI engine's clean performance is recognized
by Japan's National Ministry of Transportation's "Low Emissions Excellence"
certification.
The engine has also been made 8% lighter and more compact than Honda's
previous 1.3-liter engines. This was achieved by reducing the valve angles to
create a smaller combustion chamber, and by incorporating a more compact air
cleaner, a serpentine auxiliary drive system, a plastic intake manifold, a
stainless-steel exhaust pipe, and other innovations.
The lightweight, compact, high-performance i-DSI engine, in tandem with a
newly developed Honda Multimatic S transmission, creates a new breed of small
car that achieves ultra-high fuel efficiency and clean emissions coupled with
superior performance. In addition, the smaller engine room makes for a
roomier passenger compartment.
NOTE: all performance specifications are based on Honda's in-house
testing.
A photograph of the i-DSI engine cut-away model will be available for
downloading after May 18, 2001 at:
http://www.honda.co.jp/PR/photo/NewGenerationEngine/
European Civic to Be Equipped With Isuzu-designed Diesel Engine
- Honda Also Developing Next Generation 2-liter Diesel Engine -
TOKYO, May 18, 2001 -- Honda Motor Co, Ltd. today announced plans to equip
its European Civic with 1.7-liter Isuzu diesel engine, with production
starting in November 2001 at Honda of the U.K. Manufacturing (HUM). The
diesel engine will be manufactured by Isuzu Motors Incorporated at its plant
in Poland (Isuzu Motors Polska). Honda is also developing a next generation
2-liter class diesel turbo engine and is aiming to mass produce the engine for
the next generation European Accord to be launched in 2003.
With respect to the new 2-liter diesel engine, Honda has also reached a
basic agreement with Isuzu for technical support in the development process
leading up to mass production. The percentage of diesel passenger vehicle
sales in the European market has been increasing year by year and Honda plans
to strengthen the competitiveness of its flagship model Civic and next
generation Accord vehicles by equipping them with diesel engines.
1.7 Liter Diesel Turbo Engine
In December, 1999, Honda reached an agreement with General Motors
Corporation (GM) to supply GM with Honda's V6 ULEV engine and transmission,
with Isuzu, a GM Group company, to provide Honda with diesel engines for Honda
vehicles bound for the European market. The Honda-Isuzu diesel engine supply
agreement this week is in fulfillment of that agreement and stipulates that
Isuzu will provide approximately 5,000 engines to Honda through March of
2002 and another 15,000 engines annually commencing in April for Civics to be
sold in the European market. Production of the Civic will be at HUM, located
in Swindon, Wiltshire, England.
The engine that Isuzu will supply to Honda is a newly developed
1686cc DOHC diesel equipped with a common rail high-pressure fuel injection
system. It is exclusively designed for the Civic and provides a maximum
output of 100ps (Value based on in-house testing), while still delivering
excellent fuel economy.
New-Generation 2-Liter Diesel Turbo Engine
Honda is currently developing a new-generation 2-liter class diesel turbo
engine with an aluminum engine block based upon technical expertise gained in
the development of its gasoline engine aluminum engine blocks. Based on a
prototype prior to the 1999 Tokyo Motor Show, the development process is now
shifting toward mass production with plans to install the engine in the next
generation European Accord in 2003. Utilizing its expertise in engine
technology, Honda will strive to develop a next-generation engine with
top-level environmental friendliness and powerful performance.
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