Interview: Takanobu Ito, President/CEO of Honda

ito-honda-tokyo-2009

Contrary to what other industry leaders are saying regarding the world economic situation, the worst is not over yet. That is the opinion of Takanobu Ito, the new President and CEO of Honda Motor Co, shared with the Malaysian media during an interview earlier today at the 2009 Tokyo Motorshow. It was quite an interesting interview as he had just taken over Takeo Fukui who has been the big boss for 6 years.

takanobu-itoAccording to Ito-san, so far the situation has subsided enough to the point that financial institutions can begin getting back onto their feet again and start issuing credit, but this optimism does not follow through down to the grassroots where the actual customers are.

Ito says Honda is in the business of selling cars and when you look at actual customers, the economy is not yet at a point where customers have regained their appetites for making purchases. This is because they do not feel secure or rather are not confident enough that they have the disposable income to make a big purchase like a car, yet. This applies not only with the US market but to other markets such as Europe as well.

But Ito expects certain markets to continue to show growth such as the Asian market and that includes us in the ASEAN region. For now, Ito’s biggest challenge is to ensure that Honda continues to remain relevant in the global automotive scene. Ito is from an engineering background, specializing in chassis design. He was the Large Project Leader (LPL) for the Honda NSX.

old-honda-nsx

Ito says Honda has to continue to develop enticing products and new technology to keep the Honda brand in people’s minds. In fact, it has to be so to keep people interested in cars altogether – apparently in Japan the young Japanese are starting to lose interest in cars thanks to their extremely efficient and usable public transportation system.A select but alarmingly growing few feel cars are no cool to own – they prefer the latest handphones or gadgets.

Honda U3-XBut new products are just one part of the picture. Ito has to revamp the company’s very financial foundation to ensure that even in times of reduces sales volume, the company can still make a bit of profit – not just breaking even or dipping down into the red.

Ito stressed that this has to be done as soon as possible, and it has to be done without compromising things like its Fundamental Technology Research Centre (held under Honda R&D Co Ltd) which employs 700 people who work on random pieces of advanced technology such as the ASIMO robot, the Honda Jet, and even things like nanotechnology and brain-machine interface systems. But of course as consumers I think we’d appreciate things like R&D to develop a 7-speed automatic that can be equipped at the cost of a 4-speed! ;)

The first thing that was chopped is their F1 program (which has since evolved into the successful Brawn GP) and Ito regrets that the move was inevitable. Encouraging its engineers to have out-of-the-box thinking and develop breakthrough ideas are more important than racing a really fast single seater around racetracks.

Honda’s Tokyo 2009 exhibits also included a mix of alternative fuel vehicles. We have the hybrids of course and the Honda FCX Clarity fuel cell car which has started to become familiar to us, but Honda also exhibited a few new zero emissions electric (battery-powered) products such as the Honda EV-N Concept, a retro-styled compact city car that looks like a tribute to the Honda N360.

honda-ev-n-live

Does this mean Honda has shifted its focus to EVs instead of FCVs? Ito says no – Honda’s product strategy does not assume the fact that EV is the set way of future automobile propulsion. Ito says EVs are not the solution to everything, and will remain far from so in the future if battery technology does not improve.

In fact, these alternative fuel vehicles are currently so costly that they may really never make their way full-scale in poorer third world countries such as most of the ASEAN region, with the exception of perhaps Singapore. A cheaper way to make a difference would be to make more fuel efficient engines and reduce vehicle weight so that power to weight ratio improves, and when power needs reduce, fuel consumption will reduce.

Acura NSX

Finally we asked Ito-san: What kind of company is Honda right now? With it quitting F1 and scrapping its new NSX program, the company seems to be distant from its past identity that consisted of cars such as the Honda NSX, the Honda Integra, and etc. With the cancellation of the NSX, Honda is pretty much left without a flagship model, and I think the closest that Honda has to something like a flagship now is the FCX Clarity which is a very large fuel cell hatchback. Yes, see what I mean?

Having been heavily involved in the old NSX, Ito says he of course would be very happy to have another car like the NSX like the flagship but Honda has to find a way to do it while remaining relevant to current environmental and economic issues first.

But if he were to dream up what a new Honda flagship would be like – it would be much like the old NSX with a very lightweight body, but powered by powerful motors fed energy by hydrogen fuel cells instead of the NSX’s petrol-powered VTEC V6. But that’s not going to happen for the moment – it looks like funds are being used quite conservatively. Honda expects to post a US$111 million operating loss for its first half earnings this fiscal year, which is already better than expected as the effect of the weak dollar versus strong yen (91 yen to a dollar) was cushioned by the China market which is doing well, as well as sales in Japan.

Looking to sell your car? Sell it with Carro.

Certified Pre-Owned - 1 Year Warranty

10% discount when you renew your car insurance

Compare prices between different insurer providers and use the promo code 'PAULTAN10' when you make your payment to save the most on your car insurance renewal compared to other competing services.

Car Insurance

Paul Tan

After dabbling for years in the IT industry, Paul Tan initially began this site as a general blog covering various topics of personal interest. With an increasing number of readers paying rapt attention to the motoring stories, one thing led to another and the rest, as they say, is history.

 

Comments

  • shawal on Oct 22, 2009 at 7:26 am

    In youtube, there's a NSX protoype running round the ring', izzit really the NSX?

    Like or Dislike: Thumb up 0 Thumb down 0
  • izzat aziz on Oct 22, 2009 at 9:10 am

    Honda EV-N just look funny.. i mean bad funny.. yay it tribute to older car but still look funny and no way gonna drive it.

    Like or Dislike: Thumb up 0 Thumb down 0
  • mystvearn on Oct 22, 2009 at 11:07 am

    No NSX for time being. Honda will be very conservative and maybe release a flagship model like every 10 years from now. I can see the same think happening with Nissan. The GT-R will be in service for a very very long time.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Littlefire on Oct 22, 2009 at 2:45 pm

    'Encouraging its engineers to have out-of-the-box thinking and develop breakthrough ideas are more important than racing a really fast single seater around racetracks.'

    This say it all…

    Like or Dislike: Thumb up 0 Thumb down 0
  • akupung on Oct 22, 2009 at 3:47 pm

    what car is that in the last picture?? great interview..for a CEO of a multi billion company, he sounds really down earth and always stick to reality..and " we’d appreciate things like R&D to develop a 7-speed automatic that can be equipped at the cost of a 4-speed!" i bet we all looking for this rather than that Segway like thingies..

    Like or Dislike: Thumb up 0 Thumb down 0
  • common sensor on Oct 22, 2009 at 3:52 pm

    To HONDA, nobility is not at all for showing off ..

    Like or Dislike: Thumb up 0 Thumb down 0
  • mitlanevo on Oct 22, 2009 at 4:18 pm

    "cars are no cool to own"

    oh my, crazy japs…

    Like or Dislike: Thumb up 0 Thumb down 0
  • SY0H (Member) on Oct 22, 2009 at 4:29 pm

    Congratulation to Honda! For actually putting a caliber person on the CEO chair. Somebody with an engineering background to lead an engineering-based company! Not like here in Malaysia, our mentality is set only accountant can run company. Or only cronies with no caliber at all can run companies. LOL.

    Like or Dislike: Thumb up 0 Thumb down 0
  • when you have super efficient public transport… car become luxury thing… nice

    Like or Dislike: Thumb up 0 Thumb down 0
  • trav_da_man on Oct 22, 2009 at 5:49 pm

    Honda is moving from a engineering & high performance days of vtec mania to environmental warrior. Something which is actually good but i not fond with it. They seems losing their identify that people know them the best to something actually benefits the world.

    Well thank god Toyota is now making exciting cars back.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Chris Chong on Oct 22, 2009 at 6:50 pm

    If Honda isn't careful, they may end up being the Japanese-equivalent of Lancia – a marque with an illustrious racing heritage and amazing road cars in THE PAST (think Delta Integrale, Stratos, Thema and Monte Carlo) but nothing noteworthy in the present.

    The fastest thing in Honda's stables at the moment is the S2000, which is being phased out, followed by the Civic Type-R, which is an amazing car but not quite prestigious enough.

    If Honda wants to maintain their sporty image without embarking on expensive projects like the NSX, they should at least try to make everyday cars that are also sporty.

    Maybe, they should reintroduce the Integra as a small, low-cost, RWD sedan/coupe – so it wouldn't be directly competing against the Civic.

    Maybe they should also transform the Accord range to RWD in the next generation, to make them a genuine alternative to a BMW 3 or 5 series (then, M5-eating high-performance versions can be made without that much additional costs).

    Maybe they could reintroduce the CRX badge but put it on a small, mid-engined Elise-sized sportscar…

    Like or Dislike: Thumb up 0 Thumb down 0
  • litespeed on Oct 22, 2009 at 8:16 pm

    I bet a few Honda bigshots are pulling their hair off seeing JB and Brawn singlehandedly drove the ashes of the ex Honda team to F1 glory. And now all they have is these funky treehugging technologies and various faceless, soulless models to shout for.

    Like or Dislike: Thumb up 0 Thumb down 0
  • azrai on Oct 23, 2009 at 12:47 am

    Even Honda really face the reality they must make money and not pride. That's business is all about. to stay in profit. remeber Arsene Wenger last week says a winning club with heavy debt will soon go to the drain. Even his club not quite syuccessful, he make sure all the shareholder happy with hefty dividen year after year.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Honda Owner on Oct 23, 2009 at 4:10 am

    It's good to have new model BUT after sales service Honda are very poor and unsatisfied. I have faced a lot of problems lately and try to get Honda Japan to help but still no good respond. Please consider before make any commitment.

    Like or Dislike: Thumb up 0 Thumb down 0
  • tokmoh on Oct 23, 2009 at 7:45 am

    SYOH : FYI, Datuk Syed Zainal, the Proton MD has engineering background. That ought to explain why Proton has improved since he took helm in late 2005.

    Eh Paul, Honda sponsor ur trip ke? Why u say Tokyo Motorshow 2009 brought to us by Honda?

    Like or Dislike: Thumb up 0 Thumb down 0
  • Paul Tan on Oct 23, 2009 at 7:52 am

    yes, could not have afforded it myself.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Sexythang on Oct 24, 2009 at 6:43 pm

    honda after sales is not bad. perhaps its only bad in malaysia where proton sets a bad example. so everyone else dont need to bother that much. more to do with the dealer to fix your problem rather than honda head office.

    i think honda is doing the right thing. the only thing they need to do is release another Integra. as in a product that refreshed the whole market like the way it did to the FWD market back in the 90's.

    hopefully they will catch on to the toyota, nissan and hyundai's view of low cost rwds even though Honda did rule out any rwd and will focus on fwd for the foreseable future based on cost and fuel consumption views.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Ayman Musharbash on Sep 10, 2013 at 10:22 pm

    Dear Honda Customer Service,

    I trust my email finds you all well; I would to let you know that I bought a USA Made 2012 CRV EX AWD in Kuwait, I heard whistling (high pitched whine) noise on my way home from the dealer; the noise is very noticeable while driving 60-80 KM/PH, the same noise is much less noticeable above or below this KM/PH range. It is especially louder when I let go of the gas pedal (accelerate/decelerate) at 60-80 KM/PH, the noise can be heard from the driver side easier than the passenger side, and I can reproduce the noise consistently

    However, at first I thought it is some kind of wind noise, but it’s obvious that it’s something else other than wind, anyway, I took it to the dealer on the 1000 KM maintenance, they recognized the noise, but wouldn’t do anything, actually, they changed a recalled front doors locking mechanism and told me “keep monitoring & give it sometime maybe the noise will go away by itself”, on the 5000 KM maintenance they insisted on the same statement. Couple of weeks ago, I done the 10,000 KM maintenance, and it happened that they had a new very good service manager, he drove the car, heard the noise, then requested from the workshop mechanics to inspect the car lower-end thoroughly, the guys suspected that the right wheel-bearing is the cause, they replaced it, and the noise is still there

    I’m a Canadian citizen (working on a contract) feeling frustrated while driving to work during every day because I previously owned two Honda cars in Canada (Civic & Accord) with no issues at all with the cars or dealer, I googled the issue, it seems to be too many owners (CRV 2012) facing the same with no proper resolution from Honda side., how come this time!!!

    Finally, I really appreciate a proper action from your side and to let you know that I will think twice before buying or recommending Honda going forward

    ——–
    .:|:.:|:. Ayman Musharbash | Service & Support Manager
    CISCO Cisco Systems | Kuwait/Qatar

    Like or Dislike: Thumb up 0 Thumb down 0
  • Ashwani Kapoor on Feb 19, 2015 at 11:04 pm

    Guys I also agree to it that after sale service of honda is pathetic. .you can see the below communication now I m searching a email id of mr.ito to explain the facts ..as I already sent some mail to india president of honda india but the response has not come from his side…or I think I will get justice from consumer forum….

    Like or Dislike: Thumb up 0 Thumb down 0
 

Add a comment

required

required