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Supplying Honda

Supplying Honda

Publication Date: 12/10/2016

Access an OEM’s purchasing strategy, production forecasts, global footprint, supplier relations experiences, and SWOT (strength, weakness, opportunity, and threat) analysis

OEMs’ sourcing, investment, and production strategies are molded by a complex mix of interdependent factors, ranging from the outlook of local demand, trade tariffs, and supply base availability to OEMs’ technological and platform strategies. As the supply base becomes increasingly global, new opportunities are emerging for OEMs to optimize their sourcing cost structure by tapping suppliers in cost-competitive countries. In addition, the deployment of new modular vehicle platforms creates significant economies of scale for OEMs. This affects current sourcing structures, raising the risks for suppliers to win big or lose big, and even threatens the very existence of some component manufacturers.

IHS Automotive’s OEM Strategy Service provides insight, context, data, and analytics on OEM sourcing and production strategies and analysis of local supply base development in various regions and countries.

OEM strategists and planners use the service to:

  • Benchmark their sourcing strategies
  • Understand their sourcing potential in emerging countrie

Supplier strategists and planners use the service to:

  • • Monitor the sourcing and platform outlook of their current customers
  • • Decipher key sourcing patterns and strategies of new ones

About Supplying Honda

In October 1946, Soichiro Honda established the Honda Technical Research Institute in Hamamatsu, Japan, to develop and produce two-stroke motorcycle engines. Two years later, Honda Motor Company Limited (or simply Honda) was formed. Since then, Honda has developed into a multi-national company which is split into four major business sectors: automobile, motorcycle, power products (including marine and home) and financial services. In support of these sectors, Honda is now the world’s largest manufacturer of internal combustion engines. The largest of these business sectors is automotive, which contributed 78% of net sales for fiscal year ending March 31, 2013.

Honda prides itself on its engineering prowess and the company has played a pivotal role in the development of various technology innovations, covering vehicle body and powertrain and extending through to assembly activities. Powertrain innovations are largely grouped under the ‘Earth Dreams’ brand. These technologies are largely related to improved fuel economy and reduced vehicle engine emissions, which applies across all powertrains, including petrol, diesel and petrol-electric hybrids. In February 2014, Honda announced that it would look to further expand its current range of hybrid vehicles sold in North America, a key market for the company as, based on 2013 figures, the region delivered 38% of total global Honda sales.

Overview

Global light vehicle sales              

Financial data    

Financial overview          

 

Product strategy

Company history and strategy review   

 

Major model programmes

Honda - Top 10 best-selling models        

CR-V     

Civic      

Accord

Fit/Jazz                

N BOX  

Odyssey              

City       

Pilot      

N ONE  

             

Vehicle platforms

Platform strategy            

Honda - Top 10 most used platforms      

C-5        

GSP       

D-5        

N            

BM/MD               

GSP(2)

BM/MD(2)         

2YA  

2SA

NE/IN/CO/UA  

Component sharing       

Volume planning             

 

Production strategy

Production strategy overview   

Honda - Top 10 production plants            

Japan   

United States   

China    

Mexico                

India     

United Kingdom              

Canada                

Brazil & Argentina           

Thailand              

Internal supply network              

Modularisation strategy               

Supplier parks  

Cluster of reference      

Strategies for manufacturing efficiency                

 

Purchasing strategy

Purchasing strategy overview   

Levels of vertical integration and outsourcing    

Purchasing organisation               

Purchasing offices          

Key purchasing personnel           

Purchasing budget         

             

Supplier selection

Supply base development          

Major and strategic suppliers    

Supplier evaluation criteria         

Working with Honda Motor        

             

Global sourcing

Policy and plans               

APAC    

NAFTA

EMEA   

LATAM                

 

Pricing policy

Cost reduction strategies            

Payment terms                

Raw material price management             

 

Quality management

Quality level      

Quality management systems   

Supplier integration into product development                

Management of suppliers and sub-suppliers      

Supplier awards               

 

Technology

Technological positioning            

Areas of focus  

R&D organisation            

R&D spending  

Access to supplier technology   

Approach to alternative fuels, electrification and fuel cells           

Special vehicle development     

Forward model programmes     

 

Interviews

Tom Lake, Honda            

Rahul Misra, HARMAN  

 

Supplier Relationship survey

Introduction to the SuRe index

Methodology   

Executive summary       

2014 SuRe survey results             

Profit potential                

Organization     

Trust     

Pursuit of excellence     

Outlook               

SuRe by region

SuRe by company size  

 

SWOT analysis

SWOT analysis - Honda Motor   

Global footprint - Honda Motor                

 

Major suppliers (by vehicle programme, model year)

 

2017 Honda NSX              

2016 Honda Ridgeline    

2016 Honda CR-V            

2015 Honda Vezel           

2015 Honda Pilot             

2014 Honda Fit

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