|Honda to Strengthen Structure of its R&D Operations|
|TOKYO, Japan, February 21, 2006 – Honda Motor Co., Ltd. announced plans, effective April 1, 2006, to launch a new organizational structure for Honda R&D Co., Ltd., a wholly owned subsidiary of Honda responsible for research & development activities.
Due to recent technological advancements and continued business expansion, the variety and complexity of technological components and the number of vehicles under development at Honda R&D have increased dramatically. The new structure will be launched both in response to this situation and to prepare for further expansion of business in the future. The new structure will enable each associate to demonstrate a high level of initiative, with more clear definition of roles and responsibilities and bold delegation of authority. Moreover, the new structure is designed to achieve smoother communication to help accelerate decision making within the organization. The key elements of the new structure are as follows:
Outline of the New Structure:
This structural change is a part of Honda’s continuous effort to strengthen the core characteristics that makes Honda unique, and its purpose is to continue creating advanced and creative technologies and products that are unique to Honda, which in turn will enable Honda to continue to be a company that society wants to exist.