I found this while skimming through Autoweek archive.....
Talk from the Top: New Honda chief Takeo Fukui puts the accent on performance
By AUTOMOTIVE NEWS
Since taking the helm of Honda Motor Co. as president and CEO in June, Takeo Fukui has been pushing the message that Honda needs to raise the fun-to-drive quotient in its vehicles.
Fun to drive is not just about raw horsepower, he says. Rather, it comes from a total package of ride, styling, equipment and performance. In this view, the Odyssey minivan is an example of fun to drive.
The 58-year-old Fukui traveled Honda's traditional route to his new post. An engineer who worked on the important CVCC engine program, he most recently headed Honda R&D, the wholly owned Honda unit that has been the source of every Honda president.
Not surprisingly, even a brief conversation with him reveals a strong focus on vehicle performance. For example, he has made no attempt to hide his desire to push Honda back into the front ranks of Formula One racing.
Fukui discussed his plans and priorities with Staff Reporter Yuzo Yamaguchi at Honda's Tokyo headquarters on Oct. 30.
What will be the focus of the next three-year plan, which starts in April 2005?
It will show a clear direction for Honda's future progress, but I can't be specific. We don't think that we're merely an automaker; we're a mobility company. Motorcycles are important for us. We may get into the airplane business. So we want to progress in multiple directions.
Do you have a sales goal for auto operations?
We will never aim for market share or a volume target. We have to make our customers happy and shore up our brand first. If we do, sales will follow. If sales grow, we will expand plants. But most automakers do the opposite: They build their plants first and then calculate market share based on production capacity. They end up in an incentives war as a result.
You have indicated that you want to place a greater emphasis on driving performance in Honda vehicles. What do you mean by that?
Driving performance is part of it, but we also have to work hard on safety and environment, which are the most important issues. But we'll pay attention to fun to drive, thinking of what customers are looking for. The Odyssey is an example of fun to drive.
You reported a currency loss of about $100 million for the fiscal first half ended on Sept. 30 because of the weaker dollar. How will you adjust to the pressure from the higher yen?
We got an aggressive handle on the strong yen some years ago when it shot up above 80 yen per dollar. We boosted local production actively and rode out the yen's fluctuations. So I think the impact of a strong yen is smaller on us than on our rivals. But if the yen continues rising, we could bring more U.S.-built vehicles into Japan because they would be price competitive here.
Earlier you described as a "niche" and a "new genre" an upcoming light truck for the U.S. market. How could it be all that distinctive from other trucks?
It will offer a comfortable ride like a passenger car, good fuel economy and space utility. That would differentiate the vehicle from others. But don't try to imagine what it will be like. We're not aiming it at buyers of Big 3 pickups, because we're not out to antagonize the Big 3. I'm expecting the vehicle to lure European car owners as well as some of our own customers.
Are you going to show it at the Detroit show in January?
I can't say. It's for our local operations to decide.
How many will you build?
About 50,000 to 60,000 a year. That's a minimum volume for a vehicle in the United States. But we haven't decided whether to build it in Alabama or Canada.
What will you do next in the U.S. market?
The Honda brand is established in America, but we now want to distinguish it from other Japanese brands. The image American customers have of Honda is similar to other Japanese brands. We want to make it stand out. Boosting the Acura brand also is a challenge for us.
What is your midterm sales target in the United States in 2005 when you start the next three-year plan?
We will discuss the midterm plan by seeing how the market goes. But for now, we have no sales target. Even if we have it, we won't disclose it.
Koichi Amemiya, chairman of American Honda Motor Co., has said he wants to boost light-truck sales in the United States to match car sales, which were about 840,000 in 2002 vs. about 410,000 for light trucks. Is that still the plan? How will you do that?
We should have a 50:50 ratio because the light-truck market is growing. So we'll bring out the two light trucks we've discussed - a smaller Acura model and a bigger Honda vehicle. If our capacity is inadequate to achieve that 50:50 ratio, we'll have to consider what to do. But if each plant manages to raise production by 10 percent, that will lift total volume tremendously. We'll do that before we think of building a new plant.
Acura is criticized for lacking horsepower and for sticking with front-wheel drive instead of rear- or all-wheel drive. Do you plan to change the RL sedan, which is due out next fall?
The RL will be either rear-drive or all-wheel drive.
Are you considering bringing Acura to Japan?
No. We already have three channels in Japan.
At the Tokyo Motor Show, several Japanese carmakers showed new styling directions aimed at making their brands stand out in the marketplace. Does Acura need a more distinctive design theme?
We're trying to differentiate Acura design from Honda design. We'll work harder on it because exterior design is very important. For example, the TL was designed in the United States. It shows a different front view than a Honda. We want to strengthen Acura because the brand hasn't been established yet.
At the Tokyo Motor Show, you showed the ASM minivan concept powered by a V-6. Is that a sign that Honda will be joining a high-power hybrid race?
We have two hybrids powered by I4 and V-6 engines. The question is how we should expand the use of those two engines to other models. Now that we have built up an ecological image with the Insight hybrid, we have to appeal to the mass market.
What U.S. models will get hybrid powertrains? Passenger cars?
We can use our hybrid system in a variety of models because our system is simpler, more compact and less costly than others. We can use a V-6 in any model.
You said at the Tokyo Motor Show that you want hybrids to account for 5 percent of Honda's global sales. How many units is that?
That 5 percent is based on a total volume of 3 million, or 150,000 units a year. The United States and Japan should account for 120,000 units a year. That could be reasonable.
By 2020, what percent of the developed world's markets will be powered by hybrids, what percent by fuel cells, what percent by diesels and what percent by gasoline internal combustion engines?
Gasoline engines will remain the mainstream, accounting for more than 50 percent of the total. No question about it. The question is how far hybrids will go. That may be 5 percent to 20 percent. But fuel cell penetration will be very limited, probably less than 10 percent.
At the Tokyo Motor Show in 2001 and again this year, Honda displayed a concept car that resembled a potential replacement for the NSX. When will you put the concept into production?
I want to bring it out soon, but not in a year. Everybody is waiting for it. More than 10 years have passed since the NSX was launched. The main market will be the United States, and we'll look at Japan and Europe as well. We're not expecting to sell a large number. We're looking not at volume but at the performance of the car.
When do you expect the pace of sales in China to slow?
It's hard to say when, but I think there is a risk of a slowdown. While China has tremendous potential, it's also risky. But if we are afraid of the risk, we will be behind others.
Talk from the Top: New Honda chief Takeo Fukui puts the accent on performance
By AUTOMOTIVE NEWS
Since taking the helm of Honda Motor Co. as president and CEO in June, Takeo Fukui has been pushing the message that Honda needs to raise the fun-to-drive quotient in its vehicles.
Fun to drive is not just about raw horsepower, he says. Rather, it comes from a total package of ride, styling, equipment and performance. In this view, the Odyssey minivan is an example of fun to drive.
The 58-year-old Fukui traveled Honda's traditional route to his new post. An engineer who worked on the important CVCC engine program, he most recently headed Honda R&D, the wholly owned Honda unit that has been the source of every Honda president.
Not surprisingly, even a brief conversation with him reveals a strong focus on vehicle performance. For example, he has made no attempt to hide his desire to push Honda back into the front ranks of Formula One racing.
Fukui discussed his plans and priorities with Staff Reporter Yuzo Yamaguchi at Honda's Tokyo headquarters on Oct. 30.
What will be the focus of the next three-year plan, which starts in April 2005?
It will show a clear direction for Honda's future progress, but I can't be specific. We don't think that we're merely an automaker; we're a mobility company. Motorcycles are important for us. We may get into the airplane business. So we want to progress in multiple directions.
Do you have a sales goal for auto operations?
We will never aim for market share or a volume target. We have to make our customers happy and shore up our brand first. If we do, sales will follow. If sales grow, we will expand plants. But most automakers do the opposite: They build their plants first and then calculate market share based on production capacity. They end up in an incentives war as a result.
You have indicated that you want to place a greater emphasis on driving performance in Honda vehicles. What do you mean by that?
Driving performance is part of it, but we also have to work hard on safety and environment, which are the most important issues. But we'll pay attention to fun to drive, thinking of what customers are looking for. The Odyssey is an example of fun to drive.
You reported a currency loss of about $100 million for the fiscal first half ended on Sept. 30 because of the weaker dollar. How will you adjust to the pressure from the higher yen?
We got an aggressive handle on the strong yen some years ago when it shot up above 80 yen per dollar. We boosted local production actively and rode out the yen's fluctuations. So I think the impact of a strong yen is smaller on us than on our rivals. But if the yen continues rising, we could bring more U.S.-built vehicles into Japan because they would be price competitive here.
Earlier you described as a "niche" and a "new genre" an upcoming light truck for the U.S. market. How could it be all that distinctive from other trucks?
It will offer a comfortable ride like a passenger car, good fuel economy and space utility. That would differentiate the vehicle from others. But don't try to imagine what it will be like. We're not aiming it at buyers of Big 3 pickups, because we're not out to antagonize the Big 3. I'm expecting the vehicle to lure European car owners as well as some of our own customers.
Are you going to show it at the Detroit show in January?
I can't say. It's for our local operations to decide.
How many will you build?
About 50,000 to 60,000 a year. That's a minimum volume for a vehicle in the United States. But we haven't decided whether to build it in Alabama or Canada.
What will you do next in the U.S. market?
The Honda brand is established in America, but we now want to distinguish it from other Japanese brands. The image American customers have of Honda is similar to other Japanese brands. We want to make it stand out. Boosting the Acura brand also is a challenge for us.
What is your midterm sales target in the United States in 2005 when you start the next three-year plan?
We will discuss the midterm plan by seeing how the market goes. But for now, we have no sales target. Even if we have it, we won't disclose it.
Koichi Amemiya, chairman of American Honda Motor Co., has said he wants to boost light-truck sales in the United States to match car sales, which were about 840,000 in 2002 vs. about 410,000 for light trucks. Is that still the plan? How will you do that?
We should have a 50:50 ratio because the light-truck market is growing. So we'll bring out the two light trucks we've discussed - a smaller Acura model and a bigger Honda vehicle. If our capacity is inadequate to achieve that 50:50 ratio, we'll have to consider what to do. But if each plant manages to raise production by 10 percent, that will lift total volume tremendously. We'll do that before we think of building a new plant.
Acura is criticized for lacking horsepower and for sticking with front-wheel drive instead of rear- or all-wheel drive. Do you plan to change the RL sedan, which is due out next fall?
The RL will be either rear-drive or all-wheel drive.
Are you considering bringing Acura to Japan?
No. We already have three channels in Japan.
At the Tokyo Motor Show, several Japanese carmakers showed new styling directions aimed at making their brands stand out in the marketplace. Does Acura need a more distinctive design theme?
We're trying to differentiate Acura design from Honda design. We'll work harder on it because exterior design is very important. For example, the TL was designed in the United States. It shows a different front view than a Honda. We want to strengthen Acura because the brand hasn't been established yet.
At the Tokyo Motor Show, you showed the ASM minivan concept powered by a V-6. Is that a sign that Honda will be joining a high-power hybrid race?
We have two hybrids powered by I4 and V-6 engines. The question is how we should expand the use of those two engines to other models. Now that we have built up an ecological image with the Insight hybrid, we have to appeal to the mass market.
What U.S. models will get hybrid powertrains? Passenger cars?
We can use our hybrid system in a variety of models because our system is simpler, more compact and less costly than others. We can use a V-6 in any model.
You said at the Tokyo Motor Show that you want hybrids to account for 5 percent of Honda's global sales. How many units is that?
That 5 percent is based on a total volume of 3 million, or 150,000 units a year. The United States and Japan should account for 120,000 units a year. That could be reasonable.
By 2020, what percent of the developed world's markets will be powered by hybrids, what percent by fuel cells, what percent by diesels and what percent by gasoline internal combustion engines?
Gasoline engines will remain the mainstream, accounting for more than 50 percent of the total. No question about it. The question is how far hybrids will go. That may be 5 percent to 20 percent. But fuel cell penetration will be very limited, probably less than 10 percent.
At the Tokyo Motor Show in 2001 and again this year, Honda displayed a concept car that resembled a potential replacement for the NSX. When will you put the concept into production?
I want to bring it out soon, but not in a year. Everybody is waiting for it. More than 10 years have passed since the NSX was launched. The main market will be the United States, and we'll look at Japan and Europe as well. We're not expecting to sell a large number. We're looking not at volume but at the performance of the car.
When do you expect the pace of sales in China to slow?
It's hard to say when, but I think there is a risk of a slowdown. While China has tremendous potential, it's also risky. But if we are afraid of the risk, we will be behind others.
