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 Annual
Report 2005 |
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| According to Webster’s dictionary, the word “civic” means “of or relating to a citizen, a
city, citizenship or civil affairs.” And so it was that the Honda Civic made its world debut
in 1972, a year of great advancement in motorization in Japan. As its name suggests, the
Civic incorporated Honda’s wish to create “a car for all people, a car for the world.” Ever
since, the Civic has embodied Honda’s challenging spirit, always ahead of the pack and
always delivering new levels of value. Now, 33 years since its launch, the Civic is sold in
approximately 160 nations and regions worldwide. The Civic is truly a car for the global
citizen and continues to earn the support and love of people around the world.
In this section, we will describe the evolution of the Civic as it approaches its first full
model change in five years. We will also describe how our values have been encapsulated
in this remarkable car. |
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Birth of the Civic
Honda Targets World Market
As Newcomer in Automobiles |
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The year 1970 was a historic one for Japan.
Amid a period of remarkable economic
growth, the nation hosted the Osaka Expo
and busily prepared itself for the 1972
Sapporo Winter Olympic Games. These
international events prompted Japan to
accelerate the building of transportation
infrastructure and fueled its swift transition
into an urbanized society, symbolized by
the automobile. It was then that Japan
took over the position as the world’s No. 2
automobile manufacturing nation.
Such rapid economic expansion and
urbanization caused major issues in the
form of traffic jams and air pollution.
At the time, Honda specialized in high-performance,
sporty vehicles. Given the
issues facing the nation, however, the
Company assumed the urgent task of
developing a new, economic passenger
car that would become a central part of
people’s lives. This led to the creation
of the first-generation Civic, a strategic
model incorporating the comprehensive
strengths of Honda.
The Civic’s development process
contrasted completely with Honda tradition.
Rather than pursue development based
primarily on the vision of Company founder
Soichiro Honda, the Civic’s development
team traveled to various world markets,
gained local knowledge and experience
first-hand, and then set about creating a
car that “is needed right now.”
Honda’s previous models had extremely
high-performance engines, but were lacking
in terms of space, noise reduction and weight
balance—which are important factors in
creating a car that is closely tied to people’s
lives. After reflection, the Company decided
to develop a new model that was compact
and nimble—a basic car acceptable to
people worldwide that provided “maximum
value from the minimum number of mechanical
components.”
As a latecomer to the automobile
industry, the Company’s decision to lead
the industry in developing a global car for
world markets was a true demonstration
of Honda’s challenging spirit which has
remained to this day.
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Rolling off the assembly line in July
1972, the first-generation Civic
greeted a wave of hopes and
expectations.
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At the time, the traditional “front-engine,
rear-wheel-drive, 3-box” design (engine
compartment, cab and trunk) was the
mainstream standard for compact cars,
but the Company boldly chose a “front-engine,
front-wheel-drive, 2-box” specification
(engine compartment and cab only) as
the concept for the “basic world car.” Its
project members were confronted with
multiple new challenges and difficulties in
the development process, and overcoming
these issues led to the birth of new technologies.
One was related to weight reduction.
By decreasing the thickness of steel
sheets to one-millimeter units and modifying
their structure, the Company overcame
conventional wisdom and achieved new
levels of vehicle lightness, which also
contributed greatly to reduced cost and
fuel efficiency. Also, Honda chose an independent
strut-type suspension*1, which
offered a sporty driving feel as well as a
comfortable ride, rather than the rigid-beam
suspension used in most Japanese compact
cars and trucks at the time. In another
revolutionary first, the Company introduced
its transverse-mounted engine to the
compact car market, where vertical
engines had been mainstream—giving its
cars a “roomier” feel. |
*1: Independent strut-type suspension
With an independent
strut-type suspension, the suspension of the right
and left wheels operates independently, as opposed to
a rigid-beam suspension, where the suspension of the
right and left wheels is fixed onto each axle.
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Perhaps the greatest determining factor
in the success of the first-generation Civic
was the distinctive three-door hatchback
styling, which was unusual in Japan
despite having won attention in Europe
and North America. The Civic’s “mold”
design spurned the traditional obsession
with style and took the “maximum value
from the minimum mechanical space”
concept to the extreme. This design
helped entrench its image as a familiar
“people’s car.”
After only two years of extensive trial
and error—an incredibly short amount of
time in those days—development was
complete, and the Civic made its debut,
with a two-door model in July 1972,
followed by a three-door version in
September. The series was a major hit,
especially among young people. For three
consecutive years, from 1972 to 1974,
the Civic won the Car of the Year Japan
award, firmly entrenching its name in the
Japanese market.
In 1972, Honda also began exporting
the Civic to the United States, and its
innovativeness soon won widespread
acclaim internationally. Exports to Canada
began in 1973, and between 1976 and
1978 the Civic was the best-selling import
car for 28 consecutive months in that
nation. |
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The first-generation Civic enjoyed
achievement upon achievement,
such as winning the Motor Fan magazine-sponsored Car of the Year
Award for three consecutive years.
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Low-Emission CVCC Engine Developed Ahead of World’s Major Competitors
The Civic CVCC, launched in the United States in 1974, was instrumental in cementing Honda’s reputation overseas. Initially, practically all manufacturers regarded the U.S. Clean Air Act*2 restrictions as impossible to meet. In 1972, however, a new Civic equipped with a CVCC engine became the first model in the world to officially qualify under the new standards. Honda, a latecomer to the automobile market, saw the legislation as a golden opportunity, not only to protect the environment and otherwise fulfill its social commitment but also to join the leaders in the front line of technology. The Company instantly took on the challenge with conviction.
Since first entering the Isle of Man TT races in 1954, Honda had used the racetrack as a testing ground, making excellent technological progress in the areas of speed and durability, as well as maximizing safety. The Company also learned much about setting and meeting difficult goals through its racing activities, and soon fully mastered the principles of engine combustion. Indeed, the renowned CVCC engine was the result of product development conducted through Honda’s racing activities.
The CVCC engine won acclaim not only for its clean emissions but also for its excellent fuel efficiency, and Honda later even offered its technologies to other companies. In subsequent tests conducted by the U.S. Environmental Protection Agency (EPA), CVCC received the No. 1 fuel efficiency ranking for four consecutive years. In addition to meeting stringent emission standards, therefore, the Civic CVCC delivered superior economy and performance, thus strengthening Honda’s reputation for technological excellence in the minds of customers.
To this day, Honda has pursued an unwavering policy of meeting social obligations and offering technologies that benefit the world. This policy began with the CVCC engine.
The Civic not only became the foundation for subsequent Honda compact vehicles but has since prevailed through periods of major change, including oil crises and diversifying values. It has become a true “car for the people,” as its name suggests.
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| The Civic gained popularity throughout
the world. |
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*2: U.S. Clean Air Act
In 1970, the so-called “Muskie
Law,” an amendment to the U.S. Clean Air Act, was
passed. Under the new law, the carbon monoxide,
hydrocarbon and nitrogen oxide levels in emissions of
1975- and 1976-model vehicles had to be at least 90%
lower than for 1970 and 1971 models. At the time,
these were the most stringent emission standards in the
world.
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In October 1972, the CVCC engine
was unveiled during a ceremony at
Tokyo’s Akasaka Prince Hotel, attended
by Company founder Soichiro
Honda (far right).
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At an EPA public hearing in 1973
at a Department of Agriculture hall
in Washington DC, the CVCC engine
is declared to have met 1975 emissions
standards.
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Basic Car for the World
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| Honda’s Overseas Business Progresses in Tandem with the Civic |
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Honda’s overseas business has advanced in parallel with the globalization of the Civic, which is now sold in approximately 160 nations and regions worldwide. Overseas production began in Indonesia in 1975, and Civic vehicles are now made in 11 countries, including North America, Europe, Asia and South America. Total cumulative production of Civic models at the end of calendar 2004 was approximately 16 million units—making it one of the most popular models in Honda history. In addition to expanding its overseas business, Honda has made incremental increases in the Civic’s local content*3, which has reached 97% in North America, 85% in Europe and 72% in the ASEAN market, served by the model manufactured in Thailand.
The localization of the Civic and Honda’s business expansion in the United States are two sides of the same coin. In 1986, Honda of America Mfg., Inc. (HAM), began making the Civic, having already built the Honda Accord, at its Marysville Auto Plant in Ohio. In the following year, Honda announced its “Five Part Strategy for North America” initiative*4, which called for increased localization, not only of sales but also of production and research and development. As part of this initiative, Honda built a second U.S. auto plant, in East Liberty, Ohio, in 1989, with the Civic as its core model for full-scale localization of production.
In 1992, Honda R&D Americas, Inc. (HRA), developed the Civic Coupe, a dedicated model for the North American market. Until that time, the design of the Civic was common throughout the world—consistent with its image as a “world car.” In this case, however, Honda focused closely on local needs and created a model specifically for the local market. The response was very positive, further boosting the profile of the Civic.
The Civic also has a long history in Europe. Since sales began there in 1973, the Civic has progressed in line with changing market needs. Among world markets, demand for compact hatchback vehicles is strongest in Europe, and competition there is fiercest. In response, Honda focused on four-door and five-door hatchbacks when it embarked on production of the Civic in the region. Since 2001, a three-door model produced locally at Honda of the U.K. Manufacturing Ltd. has been exported to the United States and Japan, ushering in a new era in which a European-made Civic debuted on the world stage.
As the pace of motorization picks up in Asia, the Civic continues to be warmly received by customers as a car with high added value. In the Middle & Near East, South America and other developing markets, as well, the Civic remains highly regarded as a status symbol.
As we can see, the Civic is positioned differently according to the characteristics of each specific market. In any case, technological advances have given its true global appeal, both as a “people’s car” for commuters and a “prestige automobile” with added value.
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*3: Local contents For measuring procurement ratios, we use the former EPA method for North America and the EPA method for Europe.
*4: Five Part Strategy for North America
(1) increased local content targets (75% by 1991);(2) strengthening and expansion of Honda R&D Americas (increase in associates and acquisition of comprehensive test track facility); (3) strengthening and expansion of the Ohio facility of Honda Engineering North America, Inc., which is responsible for production systems and technologies (increase in associates to boost capacity); (4) expansion of HAM's No. 2 line and engine production project (boost finished vehicle output to 150,000 units per year and raise capacity of engine production line); and (5) establish an export plan for HAM-produced passenger vehicles (increase in exports, including to Japan, in line with expanded production capacity).
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In line with its “Five Part Strategy
for North America” initiative
announced in 1986, Honda builds
a facility in East Liberty, Ohio, to
produce the Civic locally.
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In 1992, a locally developed
Civic becomes the first North
American coupe model.
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The 2005 model is already proving
popular. European demand for the
hatchback model is strong.
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| Hong Kong, 1986. The Civic with
its refined styling fits right in with the city atmosphere. |
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In 1997, a new Civic undergoes stringent quality checks at a finished car inspection line at the Sumare, Brazil, plant. |
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The Civic surrounded by associates as the first car rolls off the production line at the plant in Turkey. Cars from this factory are shipped throughout Europe |
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New Manufacturing System Attributable to the Civic
The globalization of the Civic is closely associated with Honda’s progress in manufacturing processes. The New Model Center, for example, was established in Tochigi Prefecture in 1997 to “develop high-quality production technology for automobiles.” It is charged with the task of improving the quality of automobiles produced at Honda’s facilities around the world. Planning of every Civic series since the seventh generation has been spearheaded by the Center, via computer-aided design on a global scale. With computeraided design technology, various processes including designing, simulations and production support are done digitally. Moreover, Honda’s production teams in various countries create prototype vehicles that reflect their respective market needs, in an effort to incorporate global production requirements into planning from the early design stage.
In 1998, Honda began implementing its New Manufacturing System. In September 2000, this innovation was extended to cover all major production facilities worldwide—a decision sparked by the rollout of the seventh-generation Civic at its Suzuka Plant. By making production equipment more flexible and standardizing assembly line processes, Honda built a production system capable of responding flexibly to changing markets while maintaining high levels of quality. It also enabled the Company to lower investment costs associated with the launch of new models.
In these ways, the Civic has continued to play a major role, not only in its performance as a product, but also in Honda’s advancement as a corporation, in such areas as the simultaneous development around the world of different body types, as well as new product development and manufacturing systems. |
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Technologies for the Society
Throughout its history, Honda has consistently incorporated the day’s most advanced, leading-edge technologies into its Civic models, opening up new frontiers for the compact car. The progress of the Civic is an exact parallel of Honda’s technological progress. This is a result of the Company’s willingness, since developing the first-generation Civic, to make available technologies that help society, in such areas as environmental protection and safety.
(Please refer to [Key Technologies Behind the Civic’s Evolution].)
In 1998, Honda began making and selling the Civic GX, a compressed natural gas (CNG) powered vehicle, in the United States. In 2001, it began production and sales in Japan of the Civic Hybrid, which was subsequently sold overseas, first in North America and Europe, then throughout the world. In 2000, we completed construction of the world’s first indoor omni-directional vehicle-to-vehicle crash test facility, located in Tochigi Prefecture. Utilizing this facility for the seventh-generation Civic, we achieved the Euro NCAP*5 four-star rating for passenger safety and a three-star rating for pedestrian safety—both landmarks for this class of car—earning the Civic a reputation as “the safest car in Europe.” In this way, the Civic has served as Honda’s flagship model, continuing to advance one step ahead of the expectations of society.
The sophistication of technologies incorporated into the Civic has been reflected in its reception of multiple awards in various nations. The Civic has received the Car of the Year Japan award on seven occasions. In 2000, Automotive Engineering International, the monthly publication of SAE International*6, voted the 1974 Civic CVCC the Best Engineered Car of the 20th Century (1970s category), the only Japanese car to receive this honor. These and other awards are testimony to Honda’s high level of technological excellence and a great boost to the confidence of its development teams. |
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Civic GX |
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Civic Hybrid
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*5: Euro NCAP (European New Car Assessment Program)
A government-backed testing center for automobile crashworthiness.
*6: SAE (Society of Automotive Engineers)
SAE was formed in 1905. Now called SAE International, it has approximately 80,000 individual members worldwide. In 2000, it conducted its Best Engineered Car of the 20th Century survey via its monthly publication, Automotive Engineering International, in which readers submitted their choices for the best engineered cars in each of the ten decades of the 20th century. Votes were based on three criteria: (1) “The car successfully introduced a new engineering system and/or solution that was subsequently adopted by others, either wholly or in part”; (2) “The car enjoyed exceptional longevity in the marketplace, thereby indicating and validating sound initial engineering capable of further development”; and (3) “The car achieved better performance than its contemporaries by virtue of the excellence of its engineering.” Honda’s Civic CVCC was voted the Best Engineered Car of the 20th Century in the 1970s category. |
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The New 2006 Civic
From fall 2005 to mid-2006, the Civic will undergo its first full model change in five years. Naturally, the new Civic will incorporate “advanced, leading edge technologies,” as it has always done in the past. In addition, it will feature models tailored to the specific characteristics of its various regional markets. In other words, the new Civic will be better suited to each local market than ever before.
In the United States, the series will include the ever-popular two- and fourdoor models, providing excellent driving comfort and fuel economy thanks to a new engine, and improved safety performance. Honda will build a stronger sales foundation and strive to enhance the Civic’s appeal to younger customers.
In Europe, where competition in the compact car market is intense, Honda will broaden its presence by introducing a five-door model, for which demand remains strong. Moreover, the sporty look of the current model, which is very popular, will be further highlighted in an effort to attract younger drivers. The new Civic series will also feature an original Honda-developed diesel engine that has already proved highly popular in its Accord and CR-V models. As the market for diesel-powered vehicles continues to expand in Europe, Honda will increase its profile accordingly.
In Japan and elsewhere in Asia, Honda will rejuvenate the Civic’s image by providing new visual features that closely reflect regional characteristics.
In 2006, Dongfeng Honda Automobile Co., Ltd., an affiliate based in Wuhan, China, will begin producing the new Civic, as well. It will be positioned as a mainstay model following the success of the Accord, Odyssey, Fit series and CR-V, which have together underscored Honda’s brand image in China. As a result, the Civic will be produced in six regions worldwide, further highlighting its presence as a truly global car.
All of the new Civic models worldwide will feature newly developed engines that deliver performance equivalent to larger engines, but with the fuel efficiency of smaller engines—thereby taking performance and efficiency to a new level.
The Future for the Civic and Honda
According to the original development team of the Civic, “We were committed to creating a car that made people smile. We knew that we could deliver a good product to our customers if we could convey our beliefs with strong conviction. The Civic enabled us to achieve our quest.” Honda’s concept of “a car for all people, a car for the world” has been truly incorporated in the Civic, which has advanced together with the changing needs of the times and consistently provided new levels of value to customers worldwide.
In the early stages of the new century, the world is facing a mixture of both accelerating globalization and more distinctive regional attributes. Starting from the autumn of 2005, the Civic will undergo its first full model change in the 21st century. It will take a giant leap forward in meeting the increasingly diverse needs of customers as it evolves into a “car for the global citizen that reflects the times and regional values.”
As the times change, the values people expect from their products also change. Both Honda and the products we make will continue to advance in order to pursue new values. Together with the reborn Civic, Honda will continue to grow in the years to come.
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Civic Si Concept
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| [Successive Honda Civic Generations] |
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First Generation (1972)
Following the original two-door and three-door Civic models, the Company expanded its lineup
with the Hondamatic (variable-speed automatic) and Civic CVCC in 1973. These were complemented
in 1974 by the sporty Civic RS, with a twin-cab engine, and the Civic Van, a practical,
commercial-use vehicle. For three consecutive years—from 1972 to 1974—Civic was awarded
“Car of the Year Japan.“ Overseas, as well, the Civic CVCC earned high acclaim in the United
States. In 1973, the Civic ranked third in Europe’s “Car of the Year” awards—the highest ranking
for a Japanese vehicle at that time. It also took the top prize among imported vehicles in the
U.S. Road Test magazine’s “1974 Car of the Year.” |
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Second Generation (1979)
Seeking to create a “high-quality car representing 1980s values,” Honda implemented the first
full model change of the Civic in seven years, resulting in enhanced economy, interior comfort
and driving performance. This led to the development in 1980 of the CVCC-II engine, which
delivered improved combustion efficiency. In 1981, Honda rolled out the Civic Country station
wagon and the Civic 4-Door Sedan, featuring a Hondamatic transmission with overhead drive,
front-wheel drive and notchback styling. The new Civic received the “U.S. Import Car of the Year
1980” award from Motor Trend Magazine. |
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Third Generation (1983)
The concept for the third-generation Civic was “maximum space for people, minimum space for
mechanisms.” Based on this concept, Honda developed three-, four- and five-door variations of
the Civic—a three-door hatchback and four-door sedan, as well as a five-door shuttle offering
superior utility space. In 1984, the Company unveiled the Civic Si, featuring a DOHC engine
incorporating Formula 1 technologies. It was instantly popular thanks to its innovative, long-roofed
design, and won the “Car of the Year Japan” award in 1984. In the United States, the Civic placed
first in fuel efficiency tests conducted by the U.S. Environmental Protection Agency in 1984 for the
second consecutive year. In Europe, it won the “Torino-Piedmonte Car Design Award 1984.”
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Fourth Generation (1987)
Developers of the fourth-generation Civic emphasized “exhilarating performance based on human
sensitivities.” Targeting higher efficiency, Honda created its Hyper 16-valve engine in five variations,
from 1,300cc to 1,500cc. Combined with a four-wheel double wishbone suspension, the result
was everything a person could want in a car. In 1989, the Company unveiled the Civic SiR,
equipped with its high-performance DOHC VTEC engine, featuring Honda’s revolutionary variable
valve timing technology. That model received the “Golden Steering Wheel Award” from Bild am
Sonntag, a German newspaper. It also ranked first according to a 1989 survey about car quality
and reliability conducted by France’s L’Automobile Magazine.
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Fifth Generation (1991)
The most striking feature of the fifth-generation Civic was it futuristic aerodynamic form,
with flexible interior space to suit the specific requirements of young people. The new series
also heralded the arrival of new VTEC engine variations to provide an excellent mix of driving
performance and high fuel efficiency. These included the 170-horsepower DOHC VTEC, the
ultrahigh fuel efficiency VTEC-E and a high-balance VTEC. The new cars represented a major
advancement in human and environmental friendliness, with enhanced safety features and a high
proportion of recyclable components. The fifth-generation Civic received “Car of the Year
Japan” awards in 1991 and 1992. |
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Sixth Generation (1995)
Transcending its traditional “car for the masses” appeal, the sixth-generation Civic sought to
become a vehicle that represents the times from a global perspective. It incorporated a range
of new technologies to satisfy strong demand for high performance, safety and low emissions.
These included the 3-stage VTEC engine, boasting high output and high fuel efficiency and
Honda Multimatic, a next-generation, variable-speed automatic transmission. Consequently, the
Civic received “Car of the Year Japan” awards in 1995 and 1996. |
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Seventh Generation (2000)
The seventh-generation Civic was developed as the “benchmark for compact cars,” satisfying
all important criteria, with maximum cabin space, superlative economy and smooth ride, and
unparalleled safety for occupants and pedestrians. The interior space was made more comfortable
based on a low, flat-floor design enabling occupants to easily move between front and rear
seats. Due to Honda’s G-CON collision safety technology, the seventh-generation Civic has met
the highest safety standards, winning “Car of the Year Japan” awards in 2001 and 2002. |
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| [Key Technologies Behind the Civic’s Evolution] |
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Independent Four-Wheel Suspension (July 1972)
Rather than a rigid-beam suspension, Honda
chose an independent strut-type suspension
that allowed the left and rear wheels to move
independently. |
Hondamatic (May 1973)
Honda’s original Star Range variable-speed
system provided a smooth, comfortable ride,
with seamless acceleration and deceleration,
thus contributing to the widespread popularity
of automatic transmission vehicles. The drawing
below shows a Hondamatic equipped with an
overdrive (1980). |
CVCC Engine (December 1973)
Recognizing society’s need for protecting the
environment and natural resources, Honda developed
the CVCC engine, delivering clean emissions
and excellent fuel economy. The CVCC was
based on Honda’s Low-Emission Engine Method,
where the engine’s combustion process itself
produced lower emissions, eliminating the need
for a catalytic converter to treat the exhaust gas. |
DOHC, 16-Valve Engine (October 1984)
This was a high-output, high-torque engine,
with excellent combustion efficiency thanks
to the adoption of a compact pentroof
combustion chamber and center-plug design.
This high-performance, supersensitive engine
also boasted tremendous power and high
fuel efficiency. |
Double Wishbone Suspension
(September 1987)
With the fourth-generation Civic, Honda
applied a double wishbone suspension,
normally used in Formula 1 racing machines
and prestige vehicles, to a mass-produced
model for the first time. The result was an
excellent balance of handling stability and
superior comfort. |
DOHC VTEC Engine (September 1989)
With an electronically-controlled variable valve
timing and lift mechanism, this “super sports”
engine delivered high performance in all areas.
Honda’s engineers, pursuing high RPMs and
high output on a par with racing engines, developed
the incredibly high-powered DOHC VTEC
engine, taking both high-speed and low-speed
performance to a new level. |
3-Stage VTEC Engine (July 1995)
This engine featured optimal intake valve
timing and lift across the low-, medium- and
high-speed stages, thus achieving ultrahigh
fuel efficiency. Drawing on Honda’s accumulated
technologies, it represented a major
advancement on the original VTEC engine
and employed various mechanisms to achieve
excellence in fuel efficiency. |
Honda Multimatic CVT (September 1995)
Honda Multimatic was the first high-output,
continuously variable automatic transmission
to be developed for mass production. Honda’s
engineers took full advantage of engine characteristics
to create an engine with superior
acceleration performance, seamless acceleration
and deceleration, and high fuel efficiency.
These qualities, combined with the 3-stage
VTEC engine, brought the performance of the
Civic to a new level. |
Honda IMA System (September 2001)
Based on previous Honda Integrated Motor
Assist (IMA) gas-electric hybrid systems, this
version features improved engine and motor
components, making it one of the world’s
most fuel-efficient systems. |
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