Honda's Environmentology

            
 
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Case Details:

Case Code : BECG069
Case Length : 21 Pages
Period : 1991-2006
Pub Date : 2007
Teaching Note :Not Available
Organization : Honda Motor Co. Ltd.
Industry : Auto and Ancillaries
Countries : Worldwide

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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Excerpts Contd...

Acknowledgements and Awards

Honda and its subsidiaries spread across the world were acknowledged for their efforts to reduce their impact on the environment. Honda received several awards from reputed government and environmental organizations in Japan and in other countries (Refer Exhibit IX for a list of environment awards won by Honda).

In February 2005, Honda's subsidiary in America won the WRAP (Waste Reduction Awards Program) award of the year from the California Integrated Waste Management Board. "American Honda is synonymous with excellence and quality, not only in their products but in their approach to environmental stewardship...

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Criticisms

Even as Honda was making efforts to introduce more fuel-efficient models, there were reports that some customers of Honda hybrid models were not too happy with their vehicles. For example, there were newspaper reports that Honda Insight hybrid owners had faced several problems with their vehicles. One such owner complained that the hybrid battery pack failed on more than one occasion...

Outlook

In September 2006, Honda announced that it would discontinue the Insight and would launch a replacement in 2009. The Insight had managed sales of only 320 in the first quarter of 2006. On the other hand, the Toyota Prius was going strong with sales crossing 30,000 in the same period.

For the year ending March 31, 2007, Honda upped its annual research budget to a record 545 billion yen (US$ 4.72 billion). This was a 6.8 percent increase over the previous year, and a 17 percent increase over 2004-05...

Exhibits

Exhibit I: The Honda FCX Concept
Exhibit II: Honda's Environment Statement
Exhibit III: Honda's Initiatives to Improve Fuel Economy: A Timeline
Exhibit IV: Average Fuel Economy* of Honda Cars
Exhibit V: Technologies to Reduce Noise in Automobiles
Exhibit VI: Honda Gas-Electric Hybrid Prototype
Exhibit VII: Green Purchasing Guidelines
Exhibit VIII: Honda Green Factory Initiative
Exhibit IX: Some Awards Won by Honda for Environmental Initiatives
Exhibit X: UCS Rankings
Exhibit XI: Honda's Factory Emissions in 2000-2005 (in Japan)
Exhibit XII: Emission and Fuel Economy of Selected Models
Exhibit XIII: Honda's Financial Highlights

 

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