Honda Forecasts Production Increases for Suppliers
13 May 1998
Production Increases, New Models Ahead for Honda Suppliers
MARYSVILLE, Ohio, May 12 -- Honda challenged its North
American supplier team today to be ready for more new models and increased
production as the company honored 70 suppliers with 89 top awards, the most
ever, at the annual Honda Supplier Conference.
"This year, our quality, flexibility and productivity will be tested again
with the launch of the new Honda Minivan on a new production line at Honda of
Canada Mfg. and the new Acura TL Sedan at the Marysville Auto Plant," said
Takeo Fukui, president of Honda of America Mfg. (HAM). "Based on this team's
track record of setting new standards of performance with the 1998 Accord and
its growing capabilities, I'm confident we will be successful."
Production in North America is planned to increase this year by 4.5% for
autos to 850,000 units and by 12.2% for engines to 880,000 units, noted Cesar
Penaherrera, vice president of HAM Purchasing. "In order to remain
competitive, we must find ways to become more efficient," Penaherrera told
suppliers. "We are competing for customers all over the world. We must
continue to set new standards for production, quality and value."
Other production increases supported by 408 Honda suppliers in North
America include the new Honda of South Carolina Mfg. plant, which begins mass
production of Honda ATVs in July, and the Honda do Brazil auto plant in its
first full year of production.
With both the new Honda Minivan and the new Acura TL being prepared for
mass production launch this year, Fukui noted that this is the first time two
totally new models have been developed simultaneously for North American
production.
"The new Acura TL will be the most complex and fully-featured car ever
built by this team, and the new Honda Minivan is our first entry into a
mature, full-size minivan market," Fukui said. "Both must have high quality
and high value to succeed in today's highly competitive market. Since both
the Minivan and the Acura TL have high domestic content, it is important that
suppliers work with us to meet all quality, delivery and cost targets."
Penaherrera drew a parallel to Honda's successful CART racing program.
"As we approach the millennium, speed and flexibility will dictate who wins
the competition," he said. "In order to win, the car must be finely tuned,
the design made more efficient, and the team must respond quickly to changes."
Another area emphasized at this year's Supplier Conference was
environmental leadership. "Honda was the first automaker to introduce low and
ultra-low emissions vehicles in North America," Fukui observed. "We will
continue to be a leader in environmentally friendly products and environmental
practices at our production facilities."
Penaherrera told suppliers that Honda is committed to achieving ISO 14001
environmental registration for all HAM plants by the end of the year. He
asked suppliers to become familiar with the ISO standard for environmental
systems. "This is simply becoming a standard for doing business," he said.
Among the notable Supplier Conference awards, Bando Mfg. of America in
Bowling Green, KY was a triple award winner -- for Quality, Delivery and
Productivity Improvement. Bando is only the fifth triple award winner in the
history of Honda supplier awards in North America. Others are Kaneka in 1988,
OKI Telecom in 1989, Goodyear in 1992 and Century Tube in 1997.
A total of 17 suppliers were double award winners -- 11 for Quality and
Delivery, three for Quality and Productivity Improvement, and three for
Delivery and Productivity Improvement. A new record for consecutive awards
was set by Bearse Mfg. Co. of New Windsor, NY, who won an award for Quality or
Delivery for the eighth year in a row.
A record 25 companies received Productivity Improvement awards,
representing a cross-section of stampers, molders, component and electronic
suppliers throughout the industry. "We appreciate the efforts by all our
suppliers," said Penaherrera. "We spotlight these suppliers whose performance
is a model for others to follow."
In fiscal year ended March 31, 1998, HAM purchased a record $5.75 billion
in parts from original equipment suppliers, up eight percent from last fiscal
year. During the same period, HAM increased the number of domestic suppliers
from 381 to 408.
HAM employs 13,000 associates at its four plants in Ohio. Products
manufactured include the Accord Sedan and Coupe; the Civic Sedan and Coupe;
the Acura CL Coupe, the Gold Wing, Valkyrie and Shadow motorcycles and
FourTrax ATVs; and engines and drivetrain components for both automobiles and
motorcycles.
SOURCE Honda of America, Mfg., Inc.