Striving to Become a Company That Society Wants to Exist

Honda’s Dynamically Growing Business

Thanks to the support of many people, Honda’s business operations are prospering as of last year. In fiscal 2005, Honda achieved record unit sales of motorcycles, automobiles, and power equipment and provided its customers worldwide with more than 20 million Honda products. We also achieved record net sales for the sixth consecutive fiscal year.
I believe we were able to achieve these results because we worked toward the enhancement of global competitiveness and successfully established an advanced manufacturing system in Japan to support our business on a global scale.
We have set the following three objectives as pillars to ensure further progress:
• to further develop our advanced manufacturing systems;
• to strengthen the company’s infrastructure for growth overseas;
• and to emphasize and strongly implement measures to reduce the environmental impact of our business operations.

Further Improving Environmental Technology by Strengthening the Sources and Sites of Product Creation

Environmental problems are no longer limited to issues of local pollution, which have collectively caused global warming. It has been reported that CO2 emissions from vehicles account for approximately 22 percent of all CO2 emissions from the burning of fossil fuel, and these emissions have increased every year. To address this trend, companies that conduct business on a global scale must make concerted efforts to implement global measures to reduce their environmental impact. To do so, they need strong determination as well as the appropriate technology and skills. The starting point in implementing environmental measures should be the building of an advanced R&D and production system.
To strengthen the source of product creation, Honda has entirely reorganized its R&D system, which is the foundation for its manufacturing, so that each Honda engineer will become highly motivated in their work, leading to further advances in Honda’s environmental technology. At the same time, we will establish a new domestic manufacturing facility to build a highly efficient, high-quality production system and share these advances with our plants around the world. Through these measures, we will further strengthen our capability of product creation at the source and spot.

To Become a Company That Society Wants to Exist

We will continue to take on the challenge of creating new value for our customers and society, properly acknowledging social problems that change continuously over time. To create a sustainable society, we will set higher goals and act ambitiously to help address these problems.
Honda will work to provide joy and excitement to people so that they, will value Honda as a company. Honda’s goal is to become a company that people throughout the world will want to exist.
As a means to demonstrate its commitment to be such a company, Honda has set voluntary targets for reduction in CO2 output from its products and production activities around the world. Honda is the first company in the auto industry to announce such an ambitious target.
We have set the 2010 CO2 reduction target as our corporate goal. I strongly hope that this target will serve as an important step for the present and future society and contribute to greater global movement toward reductions in greenhouse gas emissions.