Businessweek

Honda Motor Co., Ltd. develops, produces, and manufactures various motor products, ranging from small general-purpose engines and scooters to specialty sports cars. Segments The company operates through four segments: Motorcycle, Automobile, Financial Services, and Power Product and Other. Motorcycle This segment produces a range of motorcycles, ranging from the 50cc class to the 1800cc class in cylinder displacement. The company’s motorcycles use internal combustion engines developed by the company that are air- or water-cooled, four-cycle, and single, two, four, or six-cylinder. Its motorcycle line consists of sports (including trial and moto-cross racing), business, and commuter models. The company has also produced all-terrain vehicles and multi utility vehicles. Motorcycles are produced by the company in Japan at the Kumamoto factory. Its motorcycles are also produced by subsidiaries in countries worldwide, including Thailand, Vietnam, India, Brazil, and Argentina. Automobile This segment’s automobiles use gasoline engines of three, four, or six-cylinder; diesel engines; and gasoline-electric hybrid systems. The company also offers alternative fuel-powered vehicles, such as natural gas, ethanol, and fuel cell vehicles. The company’s principal automobile products include various vehicle models, including passenger cars, such as Accord, Brio, City, Civic, CR-Z, Fit/Jazz, Fit/Jazz Hybrid, Fit Shuttle, Fit Shuttle Hybrid, FREED, FREED Hybrid, Insight, Inspire, Legend, Stream, Acura RL, Acura TL, Acura TSX, and Everus S1; light trucks, such as Crosstour, CR-V, Elysion, Odyssey, Pilot, Ridgeline, Step WGN, Acura MDX, Acura RDX, Acura ZDX; and mini vehicles, such as Acty, Life, N Box, Vamos, and Zest. Automobiles are produced by the company at two sites in Japan, including the Saitama factory and the Suzuka factory. The company’s major production sites overseas include those located in Ohio (the U.S.), Alabama (the U.S.), Indiana (the U.S.), Ontario (Canada), Swindon (the U.K.), Ayutthaya (Thailand), Greater Noida (India), and Sao Paulo (Brazil). The company’s subsidiary, Yachiyo Industry Co., Ltd., assembles mini vehicles for the Japanese market. Financial Services This segment offers various financial services to the company’s customers and dealers through finance subsidiaries in countries, including Japan, the United States, Canada, the United Kingdom, Germany, Brazil, and Thailand, which provides sales support for its products. The services of these subsidiaries include retail lending, leasing to customers, and other financial services, such as wholesale financing to dealers. Power Product and Other This segment manufactures various power products, including tillers, portable generators, general-purpose engines, grass cutters, outboard marine engines, water pumps, snow throwers, power carriers, power sprayers, lawn mowers, and lawn tractors (riding lawn mowers). The company also offers a home-use cogeneration unit. In addition, it sells thin film solar cells made of crystalline silicon for home use, and for public and industrial use. Marketing and Distribution Majority of the company’s products are distributed under the Honda trademarks in Japan and/or in overseas markets. Sales in Japan: Sale of the company’s motorcycles, automobiles, and power products in Japan are made through different distribution networks. Its products are sold to consumers primarily by independent retail dealers throughout Japan. Motorcycles are distributed through approximately 7,000 outlets, including approximately 600 ‘PRO’S’ shops and approximately 100 Honda Dream authorized dealerships. As for the automobile distribution network, approximately 760 retail dealers operate approximately 2,160 shops and sell models, including the Accord, Accord Tourer, Civic-Type R EURO, Insight, Inspire, Legend, CR-V, CR-Z, FREED, FREED Hybrid, FREED SPIKE, FREED SPIKE Hybrid, Elysion, Fit, Fit Hybrid, Fit Shuttle, Fit Shuttle Hybrid, Odyssey, Step WGN, Stream, Acty, Life, N Box, Vamos, and Zest. Power products are distributed in Japan to approximately 1,200 retail dealers throughout Japan, including affiliates of