Honda Motor of Japan seeks to affirm its leadership in commercializing green technologies by revealing at least limited production of the hydrogen fuel-cell midsize, front-wheel-drive, four-door FCX sedan in 2008. In addition, Honda CEO Takeo Fukui disclosed that the carmaker counts on an aggressively-priced hybrid model by 2009, certainly below today’s hybrid Civic at $25,000.

The only problem that thats stands in the way of the shift to this alternative fuel is the incredible cost of electric power that needs to be generated to create enough hydrogen for the idea to be flawles.

Hydrogen Power
Zero emissions
Domestic fuel
Helps slow increase in greenhouse gases

Performance
Fun to drive
Smooth and powerful
Groundbreaking new fuel cell stack

The company manufactures automobiles and motorcycles, trucks, scooters, robots, jets and jet engines, ATV, water craft, electrical generators, marine engines, lawn and garden equipment, and aeronautical and other mobile technologies. Hondas line of luxury cars are branded Acura in North America and China. More recently they have ventured into mountain bikes.

Honda is the 5th largest automobile manufacturer in the world as well as the largest engine-maker in the world, producing more than 14 million internal combustion engines each year. Currently, Honda is the second largest manufacturer in Japan behind Toyota and ahead of Nissan

Honda is headquartered in Tokyo, Japan. Their shares trade on the Tokyo Stock Exchange and the New York Stock Exchange, as well as exchanges in Osaka, Nagoya, Sapporo, Kyoto, Fukuoka, London, Paris and Switzerland. American Honda Motor Co. is based in Torrance, California. Honda Canada Inc. is headquartered in the Scarborough district of Toronto, Ontario, and is building new corporate headquarters in Markham, Ontario, scheduled to relocate in 2008. It was originally planned to be located in Richmond Hill, Ontario, but delays led them to look elsewhere.[2]Hero Honda, a joint venture between Indias Hero Group and Honda, is the largest manufacturer of two wheelers in the world. Honda of Canada Manufacturing is based in Alliston, Ontario. Honda has also created joint ventures around the world, such as Honda Siel Cars India Ltd, Hero Honda Motorcycles India Ltd, Dongfeng Honda Automobile Company in China and Honda Atlas Cars Pakistan.

During the 1960s, when it was a small manufacturer, Honda broke out of the Japanese motorcycle market and began exporting to the US. Taking Honda’s story as an archetype of the smaller manufacturer entering a new market already occupied by highly dominant competitors, the story of their market entry, and their subsequent huge success in the US and around the world, has been the subject of some academic controversy. Competing explanations have been advanced to explain Honda’s strategy and the reasons for their success.

The first of these explanations was put forward when, in 1975, Boston Consulting Group (BCG) was commissioned by the UK government to write a report explaining why and how the British motorcycle industry had been out-competed by its Japanese competitors. The report concluded that the Japanese firms, including Honda, had sought a very high scale of production (they had made a large number of motorbikes) in order to benefit from economies of scale and learning curve effects. It blamed the decline of the British motorcycle industry on the failure of British managers to invest enough in their businesses to profit from economies of scale and scope.

2004 Honda Super CubThe second story is told in 1984 by Richard Pascale, who had interviewed the Honda executives responsible for the firm’s entry into the US market. As opposed to the tightly focused strategy of low cost and high scale that BCG accredited to Honda, Pascale found that their entry into the US market was a story of miscalculation, serendipity, and organizational learning in other words, Honda’s success was due to the adaptability (and hard work) of its staff, rather than any long term strategy. For example, Honda’s initial plan on entering the US was to compete in large motorcycles, around 300 cc. It was only when the team found that the scooters they were using to get themselves around their US base of San Francisco attracted positive interest from consumers that they came up with the idea of selling the Supercub.

Honda Outboard motor on a pontoon boatThe most recent school of thought on Honda’s strategy was put forward by Gary Hamel and C. K. Prahalad in 1989. Creating the concept of core competencies with Honda as an example, they argued that Honda’s success was due to its focus on leadership in the technology of internal combustion engines. For example, the high power-to-weight ratio engines Honda produced for its racing bikes provided technology and expertise which was transferable into mopeds.

Hondas entry into the US motorcycle market during the 1960s is used as a case study for teaching introductory strategy at business schools worldwide.

Its first entrance into the pickup segment, the lightduty Ridgeline, won Truck of the Year from Motor Trend magazine in 2006 (also in 2006, the redesigned Civic won Car of the Year from the magazine, giving Honda a rare double win of Motor Trend honors).