Hybrid Automobiles

Accelerating the Provision of Hybrid Vehicles to Global Customers

Honda released the Civic Hybrid and Accord Hybrid following the release of its first hybrid automobile, the Insight, in the United States in 1999. Subsequently, in November 2005, we released the new Civic Hybrid, equipped with the new Honda hybrid system called the 3-stage i-VTEC + IMA. This newly-developed hybrid system combines an intelligent variable valve timing and lift electronic control (VTEC) system to provide three stages of valve timing (low-rpm, high-rpm, and cylinder-idle mode) with a more compact and efficient Honda Integrated Motor Assist (IMA) system. The new IMA system has 20-percent higher output and 5-percent higher fuel economy¹ and is 5 percent smaller than the previous system². Moreover, it has the world’s cleanest exhaust emissions for a gasoline-powered vehicle.
Honda will develop a new, more fuel efficient and affordable hybrid family car that provides global customers with hybrid vehicles at a more affordable price, thereby contributing to the reduction of CO2 emissions.

Diesel-Powered Automobiles

Developing Next-Generation Diesel Engines That Have Cleaner Performance

The use of diesel engines theoretically improves thermal efficiency, and diesel engine technology is therefore an effective technology for achieving higher fuel economy. Particularly in Europe, diesel engines are a popular technology for reducing CO2 emissions.
In December 2003, Honda released the Accord powered by a Honda-developed 2.2-liter 4-cylinder i-CTDi diesel engine. Since then, this advanced diesel engine technology has been expanded to additional models including the FR-V (the Edix in Japan), the CR-V, and the Civic. In some CR-Vs, we attached a diesel particulate filter (DPF).
The Accord with i-CTDi engine was officially recognized by the Federation Internationale de l’Automobile (FIA) as having achieved the world’s fastest speed and highest fuel economy in the 2-liter class. Also, the engine claimed top prize in the 2—2.5-liter category at the United Kingdom’s International Engine of the Year Awards 2005. The engine was evaluated as having the best environmental performance in Europe in terms of fuel economy, quietness, and other factors.
Honda is now developing a more advanced 4-cylinder next-generation diesel engine. Within three years, we plan to commercialize this clean diesel engine, which achieves U.S. EPA Tier 2/Bin 5 emissions levels,.
We believe that diesel engines, with their technological characteristics, are especially effective in improving the fuel economy of large automobiles. Therefore, we are developing a V-6 clean diesel engine as well.

Gasoline-Powered Automobiles

Higher Fuel Economy from Advanced VTEC and VCM Systems

Honda adopted the i-VTEC system in its
gasoline-powered automobile engines of various displacements to achieve both powerful driving performance and excellent fuel economy. The i-VTEC system is an intelligent system based on Honda’s original VTEC technology.
In September 2005, Honda released an all-new Civic equipped with a 1.8-liter i-VTEC engine with performance equivalent to that of a conventional 2.0-liter engine during takeoff and acceleration, and fuel efficiency on par with a 1.5-liter engine during cruising. The model has thus achieved the highest fuel economy in its class at 17.0 km/liter.
In 2003, a Variable Cylinder Management (VCM) system, which provides a “cylinder-idle” mode, was first introduced in the Japan-market Inspire. Using this system, fuel economy was improved approximately 11 percent* compared with a conventional Honda V-6 engine without VCM. This improvement was made possible by increasing flexibility in the number of cylinders that are cut off.
Honda has applied these advanced VTEC and VCM technologies to mass-market products and will expand the application of these core automobile engine technologies to further improve fuel economy in the future.

Motorcycles

Adopting Super-Low Friction Engines and Variable Cylinder Management Technology to Further Improve Fuel Economy

Honda is committed to replacing the engines of its small and large motorcycles and scooters with 4-stroke engines and introducing electronically controlled fuel injection (FI) technology.
In 2004, Honda became the world’s first company to apply FI technology, previously used in only medium-sized and large motorcycles, to 50cc scooters. We will further expand the use of FI technology to include a larger number of models, adopting this system to all Honda scooters sold in Japan by the end of 2007, and most of Honda’s worldwide motorcycle fleet by the end of 2010.
By introducing two spark plugs and reducing engine friction to the lowest level in the world, we will improve the combustion efficiency of engines in the 125cc to 150cc class, sold in high volumes globally, as next-generation motorcycle engines. Through these measures, we will improve fuel economy for 125cc to 150cc engines by 13 percent (compared to a regular 2005 engine), while providing high output.
Also, we are now developing a Variable Cylinder Management system for large motorcycle engines based on the variable cylinder technology used in automobiles, in combination with the hyper VTEC system. These next-generation motorcycle engines will flexibly control the number of combustion cylinders and valves to deliver both higher fuel efficiency and superior driving performance. For large motorcycles, our goal is to increase fuel economy by approximately 30 percent* compared with 2005 levels.

Power Equipment

Releasing Intelligent Engines and High Expansion Ratio Engines

Honda provides power equipment with high environmental performance. For example, we marketed the GX and GC series engines, which use overhead-valve (OHV) and overhead-camshaft (OHC) technologies, and introduced the cleaner M4 series, 4-stroke, 360-degree inclinable engine to the handheld market, where 2-stroke engines were the mainstream technology. Moreover, with the iGX engine, we achieved the industry’s best environmental performance and ease of operation through the application of an intelligent, electronically controlled self-tuning regulator (STR) as a core technology. We will release a new series of iGX engines to expand the use of intelligent technology. Going forward, we will continue development of a high expansion ratio engine as the next-generation general-purpose engine. This next-generation engine has a mechanism to change the intake/compression stroke to a short stroke and the expansion/emissions stroke to a long stroke. We have already started pilot operations in the laboratory, aiming for a 20 percent improvement in fuel economy compared with a conventional engine.
Also, total sales of Honda’s small, light cogeneration units for household use, released in March 2003, surpassed the 20,000-unit mark. This cogenerator utilizes the world’s smallest natural-gas engine—the GE160V—and Honda’s unique sine wave inverter technology. On an annual basis, these 20,000 units have contributed to a reduction in CO2 emissions equal to the amount of CO2 absorbed by 1.2 million trees, representing a forested area the size of Chiyoda City, Tokyo.
Based on a basic business agreement with Climate Energy, LLC, in the United States, we will start selling the cogeneration unit to test customers in the United States in 2006 and to the general consumer market in 2007.

Fuel Cell Vehicles

Taking Another Step for the Promotion of the FCX

Since delivering an FCX fuel cell vehicle to Japan’s Cabinet Office and the City of Los Angeles in the United States in December 2002, Honda has delivered a total of 30 FCX vehicles in Japan and the United States. During this time, we leased the FCX to New York City and the prefectural government of Hokkaido, where the temperature drops below 0°C in winter. We have thus expanded the area in which the FCX can be used, proving its practicality.
In June 2005, we obtained a type approval from the Ministry of Land, Infrastructure and Transport for the FCX, a first in Japan. Before we obtained this approval, however, we had to gain approval from the ministry for each of the fuel cell vehicles. The approval for the FCX will enable us to sell the FXC in the general market, another step toward the promotion of fuel cell vehicles.
In the United States in April 2004, we obtained approval from the U.S. EPA and California Air Resources Board (CARB) to market the FCX. This is the only certification ever granted by these regulatory bodies for a fuel cell vehicle. In June 2005, we leased the FCX to the world’s first individual customer for a fuel cell vehicle and have since continued our technological research from the customer’s point of view in order to advance the accessibility of fuel cell technology for general consumers.
For the all-new FCX Concept, presented for the first time at the 39th Tokyo Motor Show in October 2005, we considerably downsized the fuel cell system while improving both its output and efficiency. We also developed the lowest floor platform ever created for a fuel cell vehicle and achieved a wide and spacious passenger cabin and next-generation sedan form.
We are now developing a new model based on the FCX Concept, to be introduced within three years. Honda will continue to take on the challenge of popularizing fuel cell vehicles, making them a familiar sight to consumers.

HES Hydrogen Fueling System for Household Use

Experiments on the Third-Generation Model Begins in the United States

Honda conducts research on its experimental Home Energy Station (HES) technology in Torrance, California, as part of its research on alternative fuels which will replace gasoline in the future. HES technology produces hydrogen from natural gas for home refueling of fuel cell vehicles while also providing households with heat and electricity. The experimental operation of the first-generation HES system (HES I) started in October 2003 and was followed in November 2004 with the more compact second-generation system (HES II). Following extensive demonstration and testing, we developed a small but high-performing reformer for the third-generation HES, which resulted in an approximate 30 percent reduction in size along with a roughly 25 percent increase in power generation. In addition, hydrogen generation and storing capacity have improved 50 percent and start-up time is reduced by one minute compared to the second-generation system. We also equipped the third-generation HES with the ability to adjust the unit’s energy production according to changes in household electricity consumption. In the event of a power blackout, the new system has the capability to generate electricity utilizing its on-board hydrogen storage tanks.

Solar Cells

Mass-Producing the Next-Generation of Thin-Film Solar Cells

The company installed its non-silicon-based, next-generation thin-film solar cell panels at twelve sites in Japan and three sites overseas to produce energy without CO2 emissions. We will introduce this system to the Suzuka Factory in fall 2006 as a next step in the process of becoming a company that manufactures products with the highest environmental performance at manufacturing plants with the lowest environmental impact.
In 2007, we will start operations at a new plant on the grounds of the Kumamoto Factory, where solar cells will be mass-produced at a rate of 27.5 megawatts annually. We will use copper-idium-galliium-selenium (CIGS) thin film to manufacture the solar cells, thereby reducing energy consumption in the manufacturing process to roughly half the amount consumed in manufacturing traditional crystallized silicon-based solar cells. In addition to reducing CO2 emissions from the manufacturing of solar cells, these environmentally-friendly cells have the highest level of solar energy conversion efficiency in the thin-film cell category.

Production Domain

To Minimize the Environmental Footprint of Honda Manufacturing Plants

Honda promotes measures to become a company that manufactures products with the highest environmental performance at manufacturing plants with the lowest environmental impact. Furthermore, to reduce CO2 emissions mainly for the prevention of global warming, we are accelerating environmental measures in the production domain. At our five domestic factories, we have set a target to reduce unit energy consumption by 30 percent by fiscal 2010 compared with fiscal 1990 levels and to improve energy savings and production efficiency by such means as integrating production processes and replacing fuels with cleaner-burning natural gas.
At the Tochigi Factory, we began replacing kerosene, used to fuel steam boilers in the production process, and liquid petroleum gas (LPG) with natural gas in May 2006. We plan to complete the replacement in fiscal 2006. By implementing these measures, we will reduce annual CO2 emissions by 3,500 tons and complete the shift to natural gas at all our factories in Japan.
In addition to the two natural-gas cogeneration systems installed at each of the Saitama and Suzuka Factories, another system will start operations at the Kumamoto Factory in July 2006. As a result, a total of five natural-gas cogeneration systems will contribute to reducing CO2 emissions by approximately 12,500 tons annually.
The Saitama Factory has transferred its on-site aluminum melting process to a Honda Group company’s aluminum alloy manufacturing facility and started a system of pouring molten aluminum from recycled materials directly into die-cast machines. This decreases the frequency with which aluminum is melted, reducing CO2 emissions. The molten aluminum supply system was first introduced to the Kumamoto Factory in 1994 and then expanded to the Saitama Factory.
At Honda’s overseas factories, measures to reduce CO2 emissions are underway. For example, Wuyang-Honda Motors (Guangzhou) Co., Ltd. in China has implemented the Green Factory initiative at a new factory that started operations in February 2006. The company collects, purifies, and reuses wastewater and rainwater to water plants and for use in cooling. Moreover, the company makes full use of natural sunlight to save energy.
In 2008, we will build a new factory for completed vehicles in the United States, and it will have the smallest environmental footprint of all our automobile factories in the region. Honda will make concerted efforts at its factories around the world to further reduce its CO2 emissions.

Recycling of Products

Development of a Bio-Fabric

Honda has succeeded in developing a plant-based bio-fabric that is highly durable and fade resistant. The fabric is a polyester material called polypropylene terephthalate (PPT) made from 1-3PDO (propanediol) derived from corn and terephthalic acid contained in oil. This fabric is used for interior surface sheets (such as seat fabric) for automobiles. It is soft, smooth, highly durable, and resists fading even after many years of use. In addition to being used as surface sheets, it can be used to cover doors and roofs and as a material in making floor mats.
Bio-fabrics are made using materials derived from plants. As such, compared with manufacturing polyester fabrics from oil, energy consumption can be reduced by 10 to 15 percent in the manufacturing process, and CO2 emissions from the automobile can be reduced by about 5kg. These fabrics can be used without changing the current cloth manufacturing process and is suitable for mass production. After adopting the bio-fabric for a new fuel cell model, we will gradually expand its use to include other new models.