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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"Honda's goal is to be a company that society wants to exist, to pursue the joy of mobility, and to extend this joy to more customers and to future generations."1

- Takeo Fukui, CEO, Honda Motor Co., in a speech in July, 2005.

"Honda is in a class of its own when it comes to producing clean cars and trucks"2

- David Friedman, Research Director, Clean Vehicle Program, Union of Concerned Scientists3.

Introduction

In the North American International Auto Show held in January 2006 at Detroit, Honda Motor Co. Ltd. (Honda) displayed the Honda FCX, a revolutionary hydrogen fuel-cell4 concept car. The FCX was an improvement over the first generation FCX, unveiled in 2003, not only in terms of design, but also in technology (Refer Exhibit I for a photograph of the new FCX).

The company announced that it would start commercial production of the new FCX in as early as 2009. "We see this (hydrogen fuel cell), right now, as the most promising technology to lower greenhouse gas,"5 said Ben Knight, Vice President (Research and Development), Honda.

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Honda was known for its commitment to the environment. As early as 1974, it became the first company to launch a low emission and fuel-efficient vehicle, the Civic CVCC6. In the 1970s and 1980s, Honda consistently improved the fuel efficiency of its cars.

It became the first company to sell hybrid cars in North America and also the first to get its fuel cell cars certified by the US government. Honda formulated and announced its Environment Statement in June 1992 (Refer Exhibit II for Honda's Environment Statement). The company brought its environment-related activities under what it called Environmentology. It even trademarked the term. Over the years, Honda had received numerous awards for its environment-friendly initiatives. Its efforts were acknowledged by governments in Japan, the US, and several other countries. The company consistently topped the biennial list brought out by the UCS since 1998 of the most environment-friendly automakers.

Honda's Environmentology - Next Page>>

1] Summary of 2005 mid-year CEO speech July 20, 2005, presented by Takeo Fukui, President and CEO, www.world.honda.com.

2] "Honda's record on the environment and fuel efficiency,"www.hybridcars.com.

3] Union of Concerned Scientists (UCS) was formed in 1969 when a group of faculty and students at Massachusetts Institute of Technology joined to protest the misuse of science and technology. The organization calls for applying science and technology for solving social and environmental problems.

4] Fuel cells are electro mechanical devices similar to batteries that use hydrogen or hydrogen-containing fuel such as methane to produce an electric current. Fuel cells are clean and quiet sources of power.

5] Danny Hakim, "Taking the future for a drive,"www.nytimes.com, November 02, 2005.

6] CVCC or Compound Vortex Controlled Combustion is a trademark owned by the Honda Motor Co. The CVCC technology helps reduce emissions without the use of a catalytic converter.

 

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