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Honda Suppliers Set New Performance Records

12 May 1999

Honda Suppliers Set New Performance Records
    MARYSVILLE, Ohio, May 11 -- In the wake of production
capacity increases announced last week, Honda challenged its North American
suppliers today to prepare their own management and technical systems for
increased production and enhanced capabilities.  The message was part of the
annual Honda Supplier Conference at which the company honored a record 73
companies with 93 awards, the most ever.
    "Our goal is to become more competitive by staying in touch with the needs
of customers, accelerating the pace of innovation, and increasing efficiency,"
said Koki Hirashima, President and CEO of Honda of America Mfg. (HAM).  "Last
week, Honda announced that auto and light truck vehicle production in North
America will reach 1.13 million in 2003, including a new plant in Alabama and
production increases at Honda of Canada Mfg. and at the Anna Engine Plant in
Ohio.  I encourage suppliers to seek improvements in the flexibility and
efficiency of your own production systems to support this growth on behalf of
our customers."
    Cesar Penaherrera, vice president and general manager of HAM Parts and
Procurement, used the Supplier Conference theme of "Innovation" to paint a
picture of the future for the more than 420 companies attending the event.
"We must increase our speed to market by reducing new model and manufacturing
lead time," said Penaherrera.  "As we approach future new model launches,
there will be less development time and fewer trial events to mature tooling
and processes.  We will accomplish this in part by transitioning to 100
percent use of digital design and development tools, and by implementing a new
electronic, integrated production scheduling system linked to the
marketplace."
    Hirashima noted that the pace of change is faster today.  "In response to
the global marketplace and economic conditions, the auto industry is
restructuring," he observed.  "To continue our leadership and success, we must
continue to improve.  That means developing new technologies that are easy to
use and improve customer value."
    Everything Honda and suppliers do to improve efficiency pays off with
reduced costs and improved value for the customer, Hirashima said.  "To
achieve fundamental excellence, we must find fresh and innovative ways to
approach our challenges and accomplish our goals."
    Honda's North American suppliers also will benefit from a major increase
in the number of parts and component sets shipped for production of Accord and
Civic models built at 13 other Honda plants in 11 countries, including Canada,
Mexico and overseas plants.  In 2003, this production is expected to increase
from 320,000 component sets in fiscal year ended March 31, 1999 to nearly
800,000 component sets in fiscal year 2004.
    Even as production increased, suppliers set new performance records last
year.  Quality awards hit a new record of 31, an increase over the previous
high of 28 set in 1998.  In addition, a record 20 suppliers scored double
awards in two of the three categories, up from 17 in 1998 and 11 in 1997.
    In fiscal year ended March 31, 1999, HAM purchased a record $6.4 billion
in parts from original equipment manufacturers, up 11 percent from last fiscal
year.  During the same period, HAM increased the number of domestic suppliers
from 408 to 450.
    HAM employs 13,200 associates at its four plants in Ohio.  Products
manufactured include the Accord Sedan and Coupe; the Civic Sedan and Coupe;
the Acura CL Coupe and Acura TL Sedan; the Gold Wing, Valkyrie and Shadow
motorcycles; FourTrax ATVs; and engines and drivetrain components for both
automobiles and motorcycles.

    Quality Performance Award

    Dawson Manufacturing Co.,           Hitachi Automotive Products,
      Dawson, GA                             Harrodsburg, KY
    Design Plastics, Omaha, NE          Neaton Auto Products Mfg., Eaton, OH
    Essex Specialty Products,           Polycon Industries, Guelph, Ontario
      Hillsdale,MI                      Shape Corporation, Grand Haven, MI
    F & P America Mfg., Troy, OH        Showa Aluminum Corp., Mt. Sterling, OH
    F & P Mfg., Tottenham, Ontario      Siemens Automotive Group, Tilbury,
    F.T. Precision, Fredericktown, OH     Ontario
    GKN Automotive, Sanford, NC         Tri-con Industries, Lincoln, NE
    Greenville Technology,              Vuteq Canada, Woodstock, Ontario
      Greenville, OH

    Delivery Performance Award

    A.A.P. St. Marys, St. Marys, OH     Plumley Division-Dana Corporation,
    Allied Ring Corp., St. Johns, MI      Paris, TN
    Dayton Rogers Mfg. Co.,             Plydex, Div. of Decoma Int'l.,
      Columbus, OH                        Aurora, Ontario
    Glacier Daido America,              Ranco North America, Plain City, OH
      Bellefontaine, OH                 Scottish Industries, Cleveland, OH
    Hayes Lemmerz International,        TFO Tech Co., Jeffersonville, OH
      Montague, MI                      The Gates Rubber Co., Monks Comer, SC
    Machining Corporation,              Zenith Sintered Products,
      Barberton, OH                       Germantown, WI
    Metokote Corporation, Lima, OH
    Mitsubishi Electric Automotive
       America, Mason, OH

    Productivity Improvement Award

    ACD Tridon, Springfield, TN         Fleetwood Metal Industries, Tilbury,
    Adronics Elrob Mfg. Corp., Hays, KS   Ontario
    Aisin U.S.A. Mfg., Seymour, IN      Gemstone Gasket Company, Danville, KY
    Collins & Aikman, Old Fort, NC      Kaneka Texas Corporation, Marion, OH
    Delphi Delco Electronics System,    Midwest Stamping, Edgerton, OH
      Kokomo, IN                        Nastech Manufacturing,
    Delphi Energy & Engine Mgmt. System,    Bennington, VT
      Fitzgerald, GA                    NEC Technologies, Hillsboro, OR
    Denso International America,        Newman Technology, Mansfield, OH
      Southfield, MI                    Panasonic Automotive Electronics Co.,
    Dura Automotive Systems,              Peachtree City, GA
      Rochester Hills, MI               Siemens Systemas Auto, Guadalajara,
    Eagle Ottawa Leather Co.,             Mexico
      Rochester Hills, MI               Vernomatic, Concord, Ontario
    Enkei America, Columbus, IN         Wabash Magnetics, Huntington IN
    Fastac, Sunbury, OH

    Double Award Winners: Quality & Delivery

    Central Manufacturing Corp.,        Johnson Matthey Catalytic System,
      Paris, KY                           Wayne, PA
    Century Tube Corp.,                 NEC Electronics, Santa Clara, CA
      Pine Bluff, AR                    Oiles America Corp., Concord, NC
    Engelhard Corporation,              Sinclair Printing, Los Angeles, CA
      Huntsville, AL                    Ver-sa-til Associates, Chanhassen, MN
    Federal Mogul Sintered Products,    Windo-Motion, Newmarket, Ontario
      Summerton, SC
    J.B. Tool & Machine,
      Wapakoneta, OH
    J.W. Speaker Corp., Germantown, WI

    Double Award Winners: Quality & Productivity Improvement

    Atlantic Tool and Die Co.,          Grede Foundries, Reedsburg, WI
      Strongsville, OH
    Bando Mfg. Of America,
      Bowling Green, KY

    Double Award Winners: Delivery & Productivity Improvement

    Clarion Corporation of America,     NGK Spark Plugs (USA), Irvine, CA
      Reynosa, Mexico                   U.S. Engine Valve Corp., Westminister,
    Eaton Corporation, Roxboro, NC        SC
    MBL (USA) Corporation, Ottawa, IL