Annual Report 2002
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Research and Development
Honda's R&D activities comprise long-term, forward-looking research aimed at developing basic and advanced technologies, and the development of products featuring these technologies that respond to the specific needs of customers in various parts of the world. In all aspects of our R&D activities, we maintain a firm commitment to innovation and leadership.

CLEANER VEHICLES
Honda has always placed a high priority on cultivating superior technologies that reduce the environmental impact of its products. Our efforts focus on such objectives as improving emissions performance, enhancing fuel economy and developing alternative-energy vehicles. To date, we have succeeded in applying a number of advanced environmental technologies to a broad range of commercial products.

Our breakthrough CVCC engine technology, incorporating a cleaner combustion process that reduces exhaust emissions, was featured in the popular Civic series in 1972. We have continued to conduct research with the goal of further reducing the carbon monoxide (CO), hydrocarbon (HC) and nitrogen oxide (NOx) emissions from exhaust gas. In 1995, we introduced the first Low Emission Vehicle (LEV) gasoline engine. At present, we are pursuing our fiscal 2006 targets to lower HC and NOx emissions by 75% from the fiscal 1996 level (Japanese market).

Efforts to develop clean, fuel-efficient engine technologies have yielded such major achievements as the Variable Valve Timing and Lift Electronic Control System (VTEC) engine technology, which increases engine output while reducing fuel consumption, and the Honda Integrated Motor Assist (IMA) system, a unique gasoline-electric hybrid system that greatly improves fuel economy. In December 2001, we commenced sales of the Civic Hybrid, featuring an advanced Honda IMA system that offers even greater efficiency than its predecessor. Current efforts target a 25% improvement in average fuel efficiency in Honda automobiles sold in Japan from the fiscal 1996 level by fiscal 2006.

We continue to promote R&D directed at the commercialization of vehicles powered by electricity, natural gas and other next-generation fuel alternatives. In September 2001, we announced the FCX-V4, a new fuel cell-powered vehicle featuring improved speed, acceleration and cruising distance, as well as new collision-safety measures, all of which enable it to deliver a performance closer to mass-produced vehicles than has previously been possible.

INDUSTRY-LEADING SAFETY STANDARDS
Honda remains committed to developing technologies that set the standards for safety in today's motorized society. Our efforts encompass active safety technologies developed to prevent accidents from occurring, and passive safety technologies that minimize injuries to drivers, passengers and pedestrians in the event of an accident. Achievements to date include our renowned antilock brake system (ABS) that provides greater stability in critical braking conditions, Vehicle Stability Assist (VSA) system and omnidirectional collision safety body, all of which have been successfully commercialized. At our indoor car-to-car crash test facility in Japan, we conduct real-world crash tests, thereby accelerating the development of technologies that meet our own increasingly high safety standards.

THE POWER OF DREAMS
Our commitment to anticipating and responding to the future needs of our customers is driving us to expand R&D efforts into new fields. In line with the commitment of our R&D team worldwide to promoting coexistence with society by providing products that offer new value, in 1986 we launched a humanoid robotics project. This project culminated in the year 2000 with the unveiling of ASIMO, our third prototype and the world's most advanced bipedal humanoid robot. We continue to conduct research with the goal of developing ASIMO into a robot that can be of great benefit to humans and to society as a whole.

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