Automotive News - July 13, 2015 - Supplement - (Page 64)
64 * JULY 13, 2015
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Honda to make English official work language by 2020
Hans Greimel
hgreimel@crain.com
TOKYO - In 2010, then-Honda
Motor Co. CEO Takanobu Ito famously said it was "stupid" to make
English the official work language of a
Japanese company. These days,
however, Japan's No. 3 carmaker is
changing its tune.
In an annual sustainability report
issued June 29, Honda said English
will be the official language for all
inter-regional communications at
the Tokyo automaker by 2020.
HONDA
Company to spend
more time on r&d
continued from Page 4
rassing recalls of the redesigned
Honda Fit small car in Japan forced
Ito to delay several product launches and overhaul r&d strategy.
Meanwhile, Ito expanded worldwide capacity to chase his goal of 6
million sales globally in the fiscal year
that ends March 31, 2017 - even as
demand failed to keep pace. Honda
sold just 4.4 million vehicles in the fiscal year that ended March 31.
Speaking last week at his first
news conference since taking office, Hachigo set two main strategies for fixing the company:
1. Better integrate Honda's six global operating centers.
2. Regain focus on innovative and
exciting vehicles.
"I plan to create a new Honda,"
Hachigo said.
The move is part of a global human resources management plan
meant to cultivate an international
work force that better represents the
company's far-flung and diverse
customer base and production operations. Honda now builds 81 percent of its vehicles outside Japan.
"While Japanese associates [expatriates] led management at Honda's
sites in each region in the past, we
have now shifted to a system of
management by local associates,"
Honda's report said. "It is vital to de-
velop an environment that achieves
close communication between associates in six regions worldwide."
By 2020, employees working
across regions - such as a Japanese engineer from Tokyo speaking
with an American plant manager in
Ohio, or a local engineer in Thailand on a conference call with a
Japanese executive in Brazil - will
have to conduct their business in
English. English also will be the lingua franca for documents shared
internationally, as well as presenta-
tions and interoffice queries.
To make sure everyone is up to the
task - especially the outnumbered
Japanese employees in the home
country - Honda said it will step up
its language training and make English proficiency a requirement for
promotion to the management level.
Japanese employees account for 32
percent of Honda's global work force
of 204,730. That share is shrinking.
Last year, Honda hired only 719
full-time employees in Japan. In
North America, it added 4,778.
The new English policy was actually implemented internally by Ito in
2013. His earlier "stupid" comment
applied to a Japanese retailer,
Rakuten Inc., which wanted to use
English for internal communications. His point: Forcing Japanese
engineers to speak English to one
another is not a recipe for success.
But being open to outsiders is.
Now, as Takahiro Hachigo, who
has worked on three continents,
takes the reins, Honda is ready to
embrace English internationally. c
"Rather than focusing on numbers, it is important to come up
with products that carry dreams
and satisfy our customers," he said.
"We will focus on the development
of innovative products."
Last month, Honda restated its
earnings to notch a 19 percent drop
in operating profit for the fiscal year
that ended March 31. Honda took
the hit after booking larger-thanexpected costs to handle expanding
recalls of Takata airbags.
and high-performance Civic Type R
from its assembly plant in England
to global markets. It will also ship
the CR-V crossover to new markets
from its plant in Canada.
Finally, instead of sourcing the
European-spec Jazz compact locally, it will ship that car from Japan.
Honda, the first Japanese carmaker to build vehicles in the U.S.,
now makes 81 percent of its vehicles outside Japan. In the first five
months of this year, Honda's exports from Japan plunged 27 percent to just 9,620 vehicles. North
America alone accounts for 40 percent of its global sales.
Hachigo was vague on details for
much of his product plan.
But he said the company will
spend more time on r&d to develop
better products more attuned to
market trends. The guiding principle, he said, will be products that
deploy innovative technology that
has yet to be marketed.
Hachigo cited the S660 mini sports
roadster, sold only in Japan, and
Honda's commuter jet business as
examples of the new spirit he wants
to see in Honda's products.
Also on tap: A redesigned Civic
small car, expected in Japan this fall
and the U.S. next spring, that will
get a new platform and downsized,
turbocharged engine. Those technologies will be deployed to other
nameplates, Hachigo said.
"My first priority should be coming up with Honda-original products," he said. "That will be the
most important pillar."
any plans for his company's struggling America-centric luxury brand.
Hachigo, despite touting "Honda-unique" technologies, even
failed to use the opportunity to
trumpet the unique three-motor
hybrid system it will deploy in the
upcoming Acura NSX halo car.
"It was just mentioned vanishingly," Richter said of the Acura business. "It isn't a priority, and it needs
to be."
Overall, though, Hachigo's approach emulates that of Toyota's
Toyoda, who took over his family's
namesake automaker just as it was
booking its first operating loss in
seven decades. Toyota was soon hit
by its own recall crisis.
The problems prompted Toyota to
halt new factory construction, maximize the use of existing capacity, redouble its focus on quality and adopt
"fun to drive" as its guiding maxim.
Toyoda's remedy worked. Toyota
now expects its third-straight year
of record profits in the fiscal year
ending March 31, 2016. c
Global woes
At Honda, rampant expansion to
create six global production and r&d
hubs led to overcapacity that is also
undermining profits, Hachigo said.
"We want to make best use of these
sites on a global basis, so the regions
can supplement each other," the
new CEO said. "That is the next step."
From now on, Honda increasingly
will use production sites outside
Japan as global export hubs, he said.
For example, Honda will ship the
five-door Honda Civic hatchback
Acura MIA
In one important way, Hachigo
does not seem to be following Toyota's playbook, noted Chris Richter,
an auto analyst at CLSA Asia-Pacific
Markets in Tokyo.
Toyota effectively stepped up its
positioning of its high-margin
Lexus luxury brand as a global profit engine. In contrast, Hachigo uttered the word "Acura" only as a
brief aside in his hourlong press
conference, entirely glossing over
Table of Contents for the Digital Edition of Automotive News - July 13, 2015 - Supplement
What's driving the shift to crossovers
A lunch date, then a breakup
Tally: Fewer minority dealerships
Sign up for 40 Under 40 online hangout
How junk cars can slip through the cracks
Nissan will boost production by 100K units, add two variants
Kia seeks J.D. Power title to prove quality gains
CEO Hachigo taking Honda back to basics
For Odor Doctors, rotten food, roadkill are all in a day's work
Mitsubishi teases Montero Sport
Uconnect changes for '16 include 'Do Not Disturb' function
Lotus plans roadster for U.S., CEO says
High-tech touches for E class
Prius fastback spotted
Latest Greek drama threatens frail auto sales recovery in Europe
Overtime plan might impact dealers
Want a strong, successful millennial staff? Dealerships say it's all in the hiring
F&I positions mesh with millennial mindset
M-B's 2017 E class ups the ante on self-driving
Time to rethink Detroit 3-UAW ties
Self-driving cars make ethical choices
Both automakers and regulators can do better
Chrysler sees midsize car incentive war
With hydrogen, high pressure to get it right
FCA US out-retails Ford Motor in June; Hyundai-Kia soars
With new owner, TI Automotive weighs acquisitions
Dealers
Lease or buy, treat ultraluxury customers differently
Dealers confront GAP sold by major auto insurers
GMC uses Instagram to pitch premium lineup
Geofencing identifies shoppers' locations
Dodge's Morse code message: Engage
How to erase that odor: Clean, deodorize, sanitize
Path to positive equity grows, but don't panic
What's holding up e-contracting?
Honda to make English official work language by 2020
Painter: 'A very deliberate step on our part'
Inventory levels drift higher
Even Accord can't keep up with the CR-V
Like the others, Nardelli learned the hard way -- or did he?
Rearview camera was one of Jordan's nifty tricks in '56
The one man who could make Piech snap to attention
Automotive News - July 13, 2015 - Supplement
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