Straight from Honda new President, Takanobu Ito, Honda cancels development of rear wheel drive cars.  A sad news for many enthusiasts because they balked at the fact that the previous Honda President, Takeo Fukui announced exciting projects for Honda, namely a new flagship rear wheel drive sedan, powered with a new V8 engine and the arrival of the most awaited replacement for Honda supercar, NSX. Spy shots of the new rear wheel drive mule car are abound, and the NSX replacement, sporting its V10 engine is screaming around the test track, everything is ready… Until Takanobu Ito arrives on the scene. Takanobu Ito is no stranger to Honda spirited roots, he is in fact, the guy in charge of creating NSX all aluminum body. So he knows a thing or two about what makes a great car (not an excessive engine).

The move is warranted though, not because Ito-san hates the enthusiasts or something, it’s just Honda couldn’t afford making these so called “question marks” products… At least according to BCG high growth/low demand matrix. The halo effect is there positively, but how is the demand? Let’s take a look at Honda profit ending 2008… 20 Billion Yen… WOWZA! A lot of cash no? No! Ending 2007, Honda profit is roughly 200 Billion Yen, 10 times of that last year. What Honda needs are cash cow products, products that makes profit like well, Fit/Jazz, Accord, Freed, and anything in between.

The new flagship sedan would just create costs and like any late comers, it will not sell well. Honda will need to cover for loss of the new car, something that Honda simply just couldn’t afford. What they can afford though is the creation of car variants from existing platform, that’s why the ZDX came to be, because it’s just a bigger Accord.

So what if Honda doesn’t have a 370Z, RX-8, ZR-1, SLK? What Honda needs now is to survive and that’s a priority over slow selling (albeit super sexy) cars anytime, anytime. Takanobu Ito will have a tough time and will have his photo on the target range of any misled Honda fans. But for true fans who understand the situation, he is actually a savior who dares to take the seat and all the responsibility (and one of the responsibilities is to take shit from enthusiasts).

But there’s still good news though; the NSX replacement is shelved, but that’s just the V10 version. There is news about Honda going to create another supercar… A hybrid supercar. Yep, Honda is rumored to scrap the V10 engine for a V6 hybrid system, just like Toyota planned hybrid Supra revival. But unlike Toyota’s hybrid 400 horsepower engine, Honda own super hybrid will generate up to 450 horsepower. This new bigger hybrid system will also found its way onto family friendly cars, probably destined to found its way under Acura hoods.

My take on the cancellation of anything rear wheel coming out from Honda is not the end all devastating news. So what if Honda or Acura is not becoming like Mercedes, BMW or even Toyota/Lexus? Honda well, they are going after Audi and Volvo… At least they both have the same front wheel vanilla cars and AWD spicier version. However both Audi and Volvo are not so stingy with their engine offering, at least there’s turbo and big V8s on Volvo side, and Audi have like what… V8, V10, W12… Acura could have gone the way of the Audis and I would care less just add more engines… A-VTEC would be nice Ito-san!

Source:

Rumored Honda super hybrid is coming

Takanobu Ito: FR Sedans are lame

Ito as new Honda President: Red marks all over

Okay, 2008 is closing, and even though Honda posts record breaking profit by the middle of 2008, September came and hell along with the winter autumn breeze. Why hell? Hell… Everything plummet since September, everything that went up suddenly dropping like it was, I dunno, want to crack some joke but I think it’s futile anyway. Anyway…

When somebody wrote “The situation is worsening every day in all regions.” in their publicized company report… Then, probably it is. For 2009, Honda forecasts a drop in automobile and power equipment demands, but cited an increase in motorcycle demand. Well, it is given, when you can’t afford a car, you will buy a motorcycle (if you live in SE Asia).

“Unit sales forecasts are: motorcycles; 10.3 million units (+10.5%), automobiles; 3.65 million units (-7%), power products; 5.185 million units (-14.4%).”

The forecasts seems… Rather safe and heart lightening, however, when we look at the direction Honda is taking, I’m not so sure anymore. “

“• Toward this end, Honda will closely monitor the marketplace and then carefully determine what actions need to be taken. Once decisions are made, Honda will take quick action as the company realizes the situation is very urgent and a slight delay in making management decisions could be critical.

• Based on this understanding of the situation, bonuses for directors, corporate auditors and operating officers will be reassessed based on the business results of the current fiscal year ending March 31, 2009. In addition, monthly remuneration of directors, corporate auditors and operating officers will be cut by 10% for all directors starting January 2009.” Things are tough when the higher ups bonuses are reassessed based on the business results.”

Tough, because if the situation doesn’t improve, it’s up to the higher ups effort to maintain their bonuses, and in this uncertain economy condition… Well it’s safe to assume that Honda just want to cut its spending.

Okay, so enough of the preliminary, let’s just cut into the meaty part. So…

The darker side…

• Honda is canceling the NSX project, along with it, the V10 and V8 engine destined to go to Acura.
• As such, Acura launch in Japan is postponed.
• So does medium to large diesel engines.
• Not to mention quitting F1 and AMA.

The lighter side…

• Honda will concentrate on small sized cars as forecasted will be the top selling model of 2009. Meaning no more waiting for the Fit on the dealers!
• Hybrids are go, CR-Z is confirmed for 2010, and Insight V2 will be available early next year.
• Focusing on small cars, Honda will introduce small size diesels and an unnamed small car positioned below the Fit/Jazz.
• Honda will make available full electric scooter in 2 years time.

The Acura homeward bound cancellation is quite a shocker… But considering that it will take much more effort of time and money to introduce and maintain two separate brand, Honda best bet is just to keep Acura where it already established its business. When things are better, you can be sure Honda is going to take Acura home!

The NSX cancellation means a lot for everybody, Honda own NSX that races in SuperGT needs replacement badly… It’s the only naturally aspirated small block V6 on the grid. Fighting with the likes of large bore V8s of Toyota and super turbos of Nissan makes an easy opponent of Honda… Although the NSX is giving Toyota and Nissan a run for their money. NSX might not dominates anymore, but the extra decade old NSX still slots in on the top 5 at SuperGT… And sometimes manage a podium finish, not bad at all.

The V8 that is planned to go to Acura is another question mark. I would say Honda already have a blueprint for the engine, but just doesn’t want to produce it in quantity. Remembering the fact that new technology = retooling cost, and cost is the keyword that everybody is trying to avoid next year. Oh well, in the coming tough times, it’s good enough that people still buys a car.

One of the biggest interesting aspect of the year end report speech is the introduction of an unnamed small car that will be positioned below the Fit/Jazz. Is it the Life? Or better yet, Zest Spark? If it is, why wait 3 years? 3 years is quite a long time, the global economy slowdown might as well be relieved by then… Well, or perhaps Honda is waiting for its Chinese-partnership to bear fruits? The Li-Nian concept car is mighty fine… I wouldn’t mind driving a Chinese made Honda.

The all new Honda Zest Spark… Not released yet

All in all, Honda is bracing for a tougher times ahead, and there nothing to better close this post than taking it directly from the big man himself…

“Honda is a company driven to achieve continuous growth by the dreams and passions of each Honda associate. Especially when the company faces difficult times, each associate will maintain a high level of initiative and continue challenging.”

We will always challenge the future Fukui-san, we will always.

Source:

Official Honda CEO year end speech

As Acura most successful and most selling product, the new 2009 TSX has a lot of ground to cover. Acura didn’t mess with success and designs the new TSX with similar cues as the out going generation. To satisfy the demands of its customers, Acura made the new TSX bigger and with a revised engine, producing slightly lower horsepower but more improved torque. More pictures and witty comments after the click.