Honda expresses its most sincere condolences to those who lost loved ones in the Great East Japan Earthquake. Our thoughts and prayers are with all those who were affected by the disaster, and we wish them a speedy recovery from its effects.
Unfortunately, one associate at a facility in the Tochigi district was killed, and damage including fallen ceilings and crumbled walls at some facilities made a temporary cessation of business activities at those facilities inevitable. As a result of bringing Honda's full resources to bear in a task force-led companywide effort to recover from the disaster, we were able to resume operations to a certain extent in our development, production, and sales departments about three weeks after the earthquake struck. Automobile production, which had been limited to 50% of capacity due to part supply instability, returned to normal levels in late June in Japan, and we expect to resume more or less normal operations overseas between August and September. We are striving to recover from the effects of the disaster so that we can provide products to waiting customers worldwide as quickly as possible.
Honda has also done everything it can to offer support to suppliers and dealerships affected by the earthquake so that they can resume stable part production as well as sales and service for customers at the earliest possible date. Going forward, we will continue to work closely with suppliers and dealerships to achieve a full recovery in business operations.
Honda's direction in moving toward 2020
The business environment in which Honda operates has been characterized by a marked acceleration of demand for compact vehicles in the world's automobile markets due to heightened environmental awareness worldwide and structural changes in the global economy. It is essential that Honda move quickly to adjust to these changing times to ensure its continued growth and development. In short, I see our top management priority as quickly strengthening our business in emerging nations' markets and accommodating the shift toward smaller vehicles by developing and commercializing advanced environmental technologies from the standpoint of society and customers as we build robust business structures. Based on this awareness, in June 2010 we adopted our 2020 Vision of providing customers good products quickly, with speed, affordability and low CO2 emissions. Today we continue to pursue that vision, which outlines the company's direction over the next 10 years.
In this context, "good products" refers to appealing products needed by customers that have been made possible by Honda's unique technology, knowledge, and creativity. Honda recognizes that its future path consists of providing such good products to customers quickly, so that they do not have to wait, and with affordability, so that they are happy to have purchased them. We are also urgently aware that Honda has no future as a manufacturer of personal mobility solutions if it does not dramatically reduce CO2 emissions, so we have included low CO2 emissions as a characteristic of this new philosophy.
Honda has a history of helping reduce CO2 emissions through technological evolution in a broad range of motorcycle, automobile, and power products, and we have worked to decrease environmental impacts through energy-creating products such as thin-film solar panels and cogeneration systems. Going forward, we will accelerate our effort to reduce environmental impacts by advancing environmental technologies and working to speed their adoption.
We see fiscal 2011 as a key year in laying a foundation for the achievement of this 2020 Vision, and while the earthquake has caused some delays, the initiative itself remains unchanged. Indeed, we believe that in these times of unparalleled difficulty, the most important thing is to get back to the Honda philosophy–the origin of everything we do—and continue to provide satisfying products to all customers.
Doing our best for the environment
In June 2011, we announced the Honda Environmental Vision as a new series of guidelines for the company's environmental initiatives based on the 2020 Vision. To accomplish the vision's goals of the joy of mobility and a rich, sustainable society, we have established CO2 reduction goals for 2020 products, and we will continue to strengthen initiatives to lower greenhouse gas emissions and minimize all environmental impacts in our corporate activities, including in production and throughout the supply chain.
The Honda Environmental Vision also serves as a declaration of our commitment to simultaneously pursuing the two goals of providing customers with the joy of personal mobility and achieving a sustainable society by further advancing Honda's unique technologies. Applying this vision to guide our actions around the world, we will boldly embrace the challenge of becoming the world's leader in environmental and energy technologies.
Going forward, we will advance those technologies so that we can continue to provide appealing products that justify Honda's existence while exciting and inspiring customers in a low-carbon manner. At the same time, I'm confident that our efforts to work closely with dealerships, suppliers, and associates to strengthen our business structures and give something back to society will ultimately contribute to the recovery of the Japanese economy. I consider this to be part of our social responsibility as a company.
Honda will continue to focus all of its abilities and resources on striving to be a company society wants to exist.
