Response
In the immediate aftermath of the earthquake, we created a companywide countermeasures headquarters at the Aoyama Headquarters chaired by the company's Risk Management Officer and began working to gather information, including about the effects of the disaster on each area of operations and the safety of dealerships, suppliers, and associates. We held meetings to share information with each area and considered what action needed to be taken. President Takanobu Ito and other executives immediately traveled to facilities in Tochigi Prefecture, dealerships in the Tohoku region, and other facilities to assess the earthquake's effect on the company's operations.
Managers check for damage in Tochigi Prefecture
Acting on behalf of customers, dealerships, students, suppliers, and associates
Customers
By the time one month had passed since the earthquake, we had resumed operations at all plants, giving top priority to fulfilling existing customer orders. To accommodate product inquiries and other requests, we listed contact information on the main page of our website along with a link to answers to frequently asked questions. We also increased the number of customer service personnel on duty and provided support by assigning experts to our Customer Relations Center, which experienced a spike in inquiries in the wake of the disaster, in order to speed our response time.
Customer Relations Center
Dealerships
To assist dealerships in the Tohoku region, we created a local countermeasures headquarters after the earthquake, and we dispatched a countermeasures headquarters support team and dealership recovery support team from Service Technology Centers throughout Japan and the Wako Building. In areas directly affected by the disaster, we supported dealerships' efforts to resume operations, including by assessing damage, transporting and repairing damaged vehicles, and cleaning showrooms and service shops. To date, more than 120 associates have rotated through these teams. We also provided emergency supplies such as food and water to motorcycle, automobile, and power products dealerships in the hardest-hit areas.
A support team helps recover vehicles that were washed away from dealerships (Honda Cars Miyagikita Tagajo Branch).
Workers remove mud from a used vehicle display area (Honda Cars Ishinomakihigashi Ishinomaki Bypass Branch).
Students
We delayed the screening schedule for students looking for jobs by two months to allow all applicants to complete the process with peace of mind. The rescheduled process began in June 2011.
Suppliers
Of some 110 suppliers with facilities in areas that experienced the earthquake with a seismic intensity of six or above on the Japanese scale, about 10% had major damage. Starting immediately after the earthquake, Honda purchasing department personnel began verifying the safety of suppliers and checking for damage, surveying the procurement status for all vehicle models' parts one at a time, and examining alternative proposals. We also sent support teams to help suppliers in affected areas resume operations as quickly as possible. Going forward, we will continue to provide assistance in order to facilitate long-term stability in our procurement operations.
Associates
In the immediate aftermath of the disaster, we began efforts to verify the safety of associates at all facilities and to check for facility damage. To avoid any long-term interruption of operations at facilities in Tochigi Prefecture, where Honda buildings and facilities sustained the greatest damage, we moved business functions to temporary satellite offices at other facilities starting in late March. About 1,700 associates worked in those offices. By early June, the satellite offices had been disbanded as their associates resumed operations at their original facilities.
A satellite office created at another facility
Other support activities
Honda donated 300 million yen to the Japanese Red Cross Society to assist in relief efforts in disaster-stricken areas.
Other aid has included providing 1,000 gasoline - and portable gas cartridge-powered electrical generators as well as 13,000 gas cartridges. In addition to enclosing printouts with instructions on how to safely use the generators and other precautionary information, we placed a video on YouTube describing the same information.
We also donated 20 Today motorcycles to social welfare councils in Iwate, Miyagi, and Fukushima Prefectures and 45 Super Cub scooters to prefectural police departments in Miyagi, Ibaraki, and Aomori Prefectures for use as a means of transportation in affected areas. Additionally, we loaned automobiles free of charge to the Central Community Chest of Japan.
We are also holding special ASIMO classes in affected areas and emergency shelters to communicate the importance of cherishing one's dreams and not giving up to children who are suffering the effects of the disaster and subsequent displacement in an effort to help them smile and stay positive.
Honda placed videos explaining how to use donated generators on its website and YouTube.
ASIMO visits an area affected by the disaster.
Future action
In terms of parts supply issues, Honda has long worked to ensure stable supplies of parts and to minimize parts supply risk in the event of a disaster by procuring parts from multiple suppliers and from multiple supplier facilities. In the future, we will work to further address the now-manifested risks associated with procuring electronic parts, materials, and other supplies from a small number of suppliers.
In terms of facilities, we will review building-related safety standards throughout the company. We also launched an initiative to support volunteer efforts by associates to help clear mud and rubble in areas affected by the disaster in early July.
Honda associates are also doing their best to meet the goal of lowering power consumption 15% from the previous year as set by the government and the Japan Automobile Manufacturers Association. As part of our effort to save as much electricity as possible without adversely affecting production, we had associates report for work on weekends, when power consumption was typically lower, and take vacation days on weekdays from June 30 to September 30, 2011. This initiative was not limited to areas served by the Tokyo Electric Power Company and Tohoku Electric Power, but rather extended to Honda facilities nationwide. Additionally, we are urging automotive parts manufacturers to take similar measures in partnership with the Japan Auto Parts Industries Association.
Providing traffic information and congestion information for affected areas
Working with Google, Honda began providing information to the public about which roads in and around affected areas were passable on Google Maps on March 14, 2011, to facilitate the safe movement of people and supplies in disaster-stricken areas. On April 27, we began making available information about traffic congestion to Google Inc. and Yahoo Japan, both of which started publishing the data on maps on their websites. By combining driving data from Honda car navigation system members with data from other companies and making the resulting information available to the general public, the initiative has developed in a way that transcends individual companies. This rapid response to the disaster occurs in the context of efforts launched by Honda in 2006 to provide information in times of emergency. The program began with a service that provides notification of forecasted flood locations and times to prevent vehicles from being submerged during heavy rainfall and then expanded to include services for issuing warnings for, and verifying personal safety in the wake of, earthquakes with an intensity of lower 5 on the Japanese scale. Honda has subsequently made improvements in these services following earthquakes.
Google's special disaster information website
Yahoo! Maps
