Honda is dead, long live Honda

If that title isn’t click bait-y enough…

Well, Yesterday Honda new CEO Takahiro Hachigo held a press conference and basically threw a lot of thing upside down inside out left to right and back and forth.

You can read Hachigo-san summary here, but here’s what I think.

Hachigo-san took a butcher knife and hack the hell out of Honda management and decision making process.

Buried under all that rose colored wordings, is the management change that Honda sorely needed or not… I don’t know… It’s all very confusing. Under Takanobu Ito leadership from 2009 to 2015, Honda for lack of better term is going through a peculiar time. During Ito-san leadership we saw Honda great three hybrid solution and the first ever mass produced turbo engine for almost than 3 decades on the Civic and JDM StepWGN. We also see the development of NSX and plenty of interesting cars such as ILX and TLX coming equipped with 8 speed dual clutch transmission and 9 speed auto that puts it finally with the “numbers aficionado” that is premium car buyers. We also see the record breaking Mobilio introduced in Indonesia that boost Honda sales beyond whatever they can imagine.

Yet, for every new interesting products Honda made for that time period under Ito-san, there’s always a hitch here and there. The Fit hybrid, employing the new hybrid system had a back and forth recall. The JDM StepWGN turbo engine is acceptable but not as revolutionary as expected, almost as if the usage of turbo is unnecessary for the car. Honda new (actually outsourced) 9 speed auto has a slight hiccup here and there. The Civic had its new 2.0L engine recalled, not even after 3 months of its introduction. There’s also airbag recall, but that’s third party event, out of reach from Honda.

Hachigo-san statement especially this one worries me… or not…

We will establish a structure where development teams at the spot can concentrate on creating automobiles and focus on the development of one whole vehicle as one product under a consistent concept. To be more precise, we will add some new positions, including new positions in charge of the area of product development, a new position in charge of conducting evaluations from the standpoint of the entire vehicle consistently for all models and new positions in charge of supervising design creation of Honda and Acura models, respectively, on a global basis. Through these changes, we will realize a development structure that can further highlight the unique characteristics of Honda.

This means that product development is going to be centralized. Is this good or bad? As I have concern for Acura in particular about this development.

Acura supposed to be the premium of Honda, but for the longest time, near premium is the only title Acura can be proud of. All of Acura products are basically premium version of the Honda cars it’s based on. ILX = Civic, TLX = Accord, RDX = CR-V, MDX = Pilot. Aside from RLX and Legend which is just basically badge engineered of the two and the NSX, all are just souped up Honda.

In 2014, Acura got a “task force” led by Erik Berkman, Honda America executive vice president, tasked to set up the planning for Acura product for the future. So with Hachigo-san shakedown, what happened with the task force?

In 2008 Honda finally gave in into the premium market market push and actually going to gun for the flagship premium at the likes of BMW and Mercedes. A spy shot was captured showing an Acura TSX with long wheel base and long dash to axle ratio indicating rear wheel drive. This push was part of two previous Honda CEO, Takeo Fukui project.

It seems that for every Honda CEO change there’s always a funky change be it organizational structure or management change. Hachigo-san push for a centralized design hopefully ends up sticking for the foreseeable future, and for every change of CEO doesn’t mean a constant change of strategy. Just make sure that future product planning is done carefully and with prudence.

It’s okay for Honda to take time to roll out new technology, fans will wait. Once somebody has been touched by a Honda product, they will always comes back.

Honda Hotness Is Coming Back?

2008 was a great year for Honda fans and maybe even for automotive scene in general. Just imagine this, Honda, a conservative company who swears on sensibility and quality is throwing those notions away for a V8 rear wheel luxury sedan and a V10 powered super car. The automotive scene roars with high expectations. Spy photos of the rear wheel sedan test car is everywhere and the super car already making runs on a race track. Alas, comes 2009 and demand for automotive products dwindles as most sought after cars are econoboxes. Honda new President, Takanobu Ito back then changed his tune about the new cars and tells the fans and the scene to go “enjoy yourself” (there’s a new profanity filter in effect). So everything was scrapped, and all hopes out the window.

Denied luxury: The canceled mule of the FR Luxury Sedan

Rumors from inside automotive industry said that the V8 rear wheel luxury sedan which was destined to go to Acura division was a great car one that should put Honda luxury division on par with tier 1 luxury marque. While the super car lives on as a special fielded race car on Japan’s most prestigious racing event, the Super GT and won it. So as you can read, it’s very unfortunate for Honda to cancels both of these cars altogether.

Denied performance: Reportedly, this car doesn’t even consider GT-R and LF-A as competition

But this morning, birds are chirping beautifully on my front porch, the wind blows softly and the sun rose with a hint of blue and orange altogether. While I browsed Autoblog and Temple of VTEC the next minute, I was shocked out of my pants that Takanobu Ito in a way hints a little hope of a super car comeback after Honda discontinued the NSX. Apparently, Takanobu Ito was interviewed in Japan and some reporters asked if Honda would make a road going version of the super car that won the Super GT.

Ito’s answer for the question was “I have something in mind”. Now for those who don’t know Takanobu Ito, this guy is all straight as an arrow kind of leader. He always answers question in a definite way, yes or no and that’s that. For Ito to answer “having something in mind” well, it’s still ambiguous but having something is better than nothing right?

Such a tease: “I have something in mind”

Okay, so the news came from a French auto news site, which might make some little mistranslation (from Japanese to French to English). However, according to Temple of VTEC news section;Yahoo Japan and Asahi Shimbun also confirms and clearly stated that Takanobu Ito greenlight the project once again. Asahi Shimbun which post the news in English also mentions that Ito hints at making two sports car, the affordable and high performance… *faints*…

For those who don’t know, this is actually earth shattering news. Honda currently has no true performance sports car in its lineup, well, sure there’s the Civic Type R, but it’s more of a pedestrian car with souped up engine. Honda Prelude ends its production in 2001, Honda NSX ended in 2005, Honda Integra ended in 2007 and finally Honda S2000 ended in 2009. What came from the demise of those cars? Hybrids and lots of it. Civic Hybrid, Insight 2.0, CR-Z, and Fit Hybrid, not to mention Freed Hybrid and next generation Accord with Honda next generation hybrid system.

The shift from hardcore to green for some was considered too rough as there are no transition product in between. It’s quite understandable actually, as technology to produce performance with fuel economy wasn’t available yet. The  2010 CR-Z was Honda answer to this and although the blend of performance and fuel economy is good enough, as usual,  some consumers demand more… Well, to be fair… This particular consumer is too accustomed to huge ass performance gas guzzler 2 door sports car that’s bigger than a Honda Fit. Still, the CR-Z receives acclaims and accolades in a place where sensibility is praised.

But remember folks, Honda has set its sight straight in the green line and we’re not talking about money. Ever since the green revolution in the late 00′ Honda has been making fuel sipper as priority. So when you think about Takanobu Ito statement, don’t forget to add the green juice. Honda has fielded NSX with KERS (Kinetic Energy Recovery System, a form of hardcore hybrid system for racing) as a test bed for SuperGT 2012 rule change that mandates smaller engine and a hybrid system. It’s unclear whether this will be applied to Honda super car but you can be sure Honda will put every single piece of technology in its super car.

Front engine – KERS NSX test car: notice the exhaust tip on the side skirt?

Whatever it is Honda… We are awaiting with arms wide open, but until this car shows up in the real world, I’m putting a question mark on the title. We’ve been burned before Ito-san, and I won’t let my heart be broken the fourth time.

Source:

Temple of VTEC: Ito san changing his tune about NSX/HSV

Yahoo Japan: NSX development to resume (Japanese)

Asahi Shimbun: Honda to develop high performance sports car

SuperGT: 2012 KERS rule

Honda Making A Nano Fighter After All

In the worse taking back your comment in corporate history, Honda certainly is at the top… As Honda is indeed making a Nano fighter. On June 2008 Wall Street Journal article, Honda is dissing the Nano and betting that the booming middle class will choose bikes over small cars like the Nano. But what do you know? One year later Honda is making one, and will debut the car in January on an Indian auto expo.

The news is actually inline with Honda current CEO, Takanobu Ito statement in an interview done by Autocar magazine UK early this December. That there is a small car coming to Asia… So does Ito-san means this is the car that’s coming to India?

What we know that the car will be produced by Honda Siel Cars India Ltd. and is indeed smaller than the Fit/Jazz. The car will be targeted towards emerging countries and that’s about it… But what the heck is it? Honda already has quite a diverse Keii/small cars… What’s with the suspense people! As I’m certainly buying this car (if it has an auto) and Freed for the family (smiley face).

Source:

Honda small car is debuting at Delhi Auto Expo

Honda CEO Interviewed, A Small Car Coming To Asia?

Honda current CEO, Takanobu Ito is interviewed by Autocar magazine UK, talking mostly about Honda plan in Europe. However, there’s one interesting question that got a very interesting answer from the head honcho.

Here’s a quote:

What’s happened to the small sub-Jazz car that was mentioned last year?

The recession has caused our business to go through difficult times, and we had to revise our business plan, which has slowed development. Our priority now is to increase sales of the Jazz in Europe. But we haven’t given up on the small car. We’d like to try it in Asia first.

As you can read it for yourself, Honda is indeed making a sub sub compact car that is going to be slotted under the Fit/Jazz, and it will be coming to Asia first… However, like my previous question is… What is it? Ito-san talked like the car is something new, not pre existing one, as Honda already has the Keii car line which literally speaking are Honda small entry level car slotted under the Fit.

Anyway, the plan is certainly on hold, but if it came to fruition, Asia will get it first.

Source:

Autocar UK interview with Takanobu Ito

New Honda President: No FR Sedans! But…

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