Honda vows to release electric motorcycle within 2 years
It's been a rough couple of weeks at Honda. After pulling out of Formula 1 racing and AMA motorcycle roadracing, the Japanese firm that built its reputation on the race track could stand to use a bit of good news. And, thanks to CEO Takeo Fukui, we can report on just that. Within two years, Honda plans to have a completely electric motorcycle on the market. Sounds great to us.
Why focus on electric motorcycles before a viable electric car? Says Fukui, "History shows that motorcycles remain strong in a difficult market environment and have always supported Honda in difficult times. People showed renewed interest in the value of motorcycles which consume less fuel for commuting purposes as well as for their easy-to-own/easy-to-use efficiency."
The global auto market is down, but Honda isn't having any problem moving motorcycles. What's more, Honda has a history of innovation on two wheels and creating an electric motorcycle will allow the company to get its feet wet, so to speak, before jumping straight into the deep end with an EV that fails to meet consumer expectations. We look forward to seeing how it turns out. Read Fukui's entire year-end announcement after the break.
[Source: Motorcycle News]
Summary of 2008 Year-End CEO Speech:
TOKYO, Japan, December 17, 2008 – The abrupt change involving the global automobile industry from mid-September of this year that was triggered by the financial crisis, forced all the automakers to change various plans over a very short period of time. The situation is worsening day by day and is showing no sign of recovery.
Despite this severe business environment, Honda has been able to introduce its advanced environmental technologies to its customers in the form of products such as the FCX Clarity fuel cell vehicle and the all-new Insight hybrid vehicle.
Facing an urgent need to address the sharp sales downturn, production adjustments have been made starting from the latter half of this year in North America, Europe, and Japan to maintain appropriate inventory levels. Honda has further decided to make an additional production adjustment of 54,000 units of automobiles in Japan during the current fiscal year.
[ Revised forecast for consolidated financial results for the fiscal year ending March 31, 2009 ]
· At the board of directors meeting held today, Honda resolved to amend the forecast of consolidated financial results for the fiscal year ending March 31, 2009, which was last announced October 28, 2008.
· New forecasts are: net sales and other operating revenue; JPY 10,400 billion (-13.4% from previous fiscal year), operating income; JPY 180 billion (-81.1%), income before income taxes; JPY 190 billion (-78.8%), equity in income of affiliates; JPY 125 billion (+5.1%), net income; JPY 185 billion (-69.2%), basic net income per common share; JPY 101.95 (-69.2%).
· The forecast for the fiscal third quarter dividend is 11 yen per share. The payment of the year-end dividend per share of common stock has not been decided yet. The company will propose the year-end dividend upon consideration of its consolidated financial results for the fiscal year ending March 31, 2009 and forecasts for consolidated financial results for the fiscal year ending March 31, 2010.
· Unit sales forecasts are: motorcycles; 10.3 million units (+10.5%), automobiles; 3.65 million units (-7%), power products; 5.185 million units (-14.4%).
[ Estimated CY2008 Worldwide Sales ]
Motorcycles: 15.12 million units (up 12 % from 2007)
Automobiles: 3.77 million units (100% of 2007)
Power Products: 5.67 million units (down 7% from 2007)
[ Motorcycle ]
Even in the growing motorcycle markets in emerging countries in Asia and South America, overall motorcycle sales experienced a slowdown in the latter half of the year due to the impact of the credit crunch.
< Asia Oceania - Motorcycle >
· 2008 sales forecast: 11.042 million units (up 15% from 2007)
< South America – Motorcycle >
· 2008 sales forecast: 1.732 million units (up 13% from 2007)
[ Automobile ]
The situation is worsening every day in all regions.
< U.S. – Automobile >
· The overall market is declining since the latter half of the year due to the impact of the credit crunch.
· 2008 sales forecast: 1.43 million units (down 8% from 2007)
< South America – Automobile >
· The financial situation is rapidly worsening since the latter half of the year.
· 2008 sales forecast: 157,000 units (up 34% from 2007)
< Europe – Automobile >
· The financial crisis has accelerated involving growing markets in Eastern Europe and Russia.
· 2008 sales forecast: 380,000 units (up 1% from 2007)
< Asia – Automobile >
· Strong sales of the all-new City is contributing positively to overall sales, however, we have begun to see the impact of the global economy crisis in this region as well.
· 2008 sales forecast: 367,000 units (up 7% from 2007)
< China – Automobile >
· 2008 sales forecast: 478,000 units (up 12% from 2007)
< Japan – Automobile >
· 2008 sales forecast: 622,000 million units (100% of 2007)
[ Power Product ]
· 2008 sales forecast: 5.672 million units (down 7% from 2007)
Direction and challenges Honda must undertake
· The mid- to long-term challenges Honda must undertake to win the severe competition and continue growing have not fundamentally changed;
1) Advancement of our global production system and capabilities with a central focus on Japan due to its leader function
2) Creation of fuel efficient products that reduce our environmental footprint, which Honda has been continuously pursuing since the establishment of the company
3) Further advancement of our motorcycle business, which is the origin of Honda
· Maintaining a long-term viewpoint, Honda undertakes these challenges in preparation for future growth.
· At the same time, new actions must be undertaken. In order to minimize the impact of recent changes in the business environment on the company's earnings and to focus fixed company resources on necessary areas, all investments and development projects will be reassessed from scratch and prioritized.
· Toward this end, Honda will closely monitor the marketplace and then carefully determine what actions need to be taken. Once decisions are made, Honda will take quick action as the company realizes the situation is very urgent and a slight delay in making management decisions could be critical.
· Based on this understanding of the situation, bonuses for directors, corporate auditors and operating officers will be reassessed based on the business results of the current fiscal year ending March 31, 2009. In addition, monthly remuneration of directors, corporate auditors and operating officers will be cut by 10% for all directors starting January 2009.
Actions to be undertaken
Honda will reassess the priorities of all investment/development projects.
< Reassess new production facilities and capacity expansions >
· New auto plant in Yorii: The start of operations, initially scheduled for 2010, will be delayed more than one year.
· New engine plant in Ogawa: Starting July 2009 as originally planned, the production will begin in stages. The plant will initially be responsible for casting and machining processes and supply engine components to auto plants in Japan and regions outside of Japan.
· New mini-vehicle production plant at Yachiyo Industry's Yokkaichi Factory: The start of full-scale operation, initially scheduled for 2010, will be delayed a little more than a year.
· Regions outside of Japan: Expansion of automobile production capacity in some countries including India, initially scheduled for 2010, and Turkey, initially scheduled for mid- 2009, will be delayed considering the current market situations.
· While making global production adjustments, Honda will make a thorough effort to mature its flexible production system to establish a company structure which enables Honda to get through anticipated future changes with minimal impact.
· Production of the Stream will be transferred from Suzuka Factory to Saitama Factory starting January 2009.
· Production of the U.S. and Canada version of the Honda Fit will also start in Saitama Factory from spring in 2009 in addition to production in Suzuka Factory.
< Sales >
· In Japan, where demand has shifted toward small-sized vehicles including mini-vehicles, Honda will strengthen its Honda Cars sales network. Meanwhile, considering the recent changes in the business environment, Honda decided to withdraw its prior plan to introduce the Acura brand in the Japanese market around 2010.
< R & D >
· The development of the NSX successor model equipped with V10 engine will be cancelled.
· The start of operations at the new R&D Center in Sakura, which was scheduled to become fully operational in 2010, will be delayed.
· Honda has decided to withdraw from all Formula One activities, making 2008 the last season of participation.
· While reassessing investment priorities, Honda will concentrate its investments on initiatives which enable Honda to survive in the rapidly changing world and achieve continuous future growth.
Further strengthening advanced environmental technologies while maintaining a long-term viewpoint
· In order for Honda to sustain its business during the next 100 years of the automotive industry, it is critical for the company to further strengthen its ability to continue advancing environmental technologies and to apply them to creative and attractive products.
· Since the establishment of the company, Honda has been consistently pursuing advanced environmental technologies in every business area. More than ever, Honda will concentrate its resources on the development of fuel-efficient products.
· The keys to achieve this goal are advancements of electromotive technologies including hybrid models as well as motorcycles and small cars.
· By concentrating the focus of its technology and product development efforts largely into these two areas, Honda will strive to achieve a breakthrough under the difficult business environment.
[ Hybrid models ]
· Honda recognizes hybrid technologies as the most realistic path for CO2 reduction at this moment.
· To effectively utilize fixed resources, Honda believes it is most important to focus all of our energy on hybrids and achieve mass market penetration as soon as possible.
<All-new Insight>
· The all-new Insight, which will make its world debut in Detroit early next year and achieve both excellent fuel economy and an attractive price has been a pioneer model toward mass market penetration for hybrid vehicles.
· It will offer convincing economic benefits for customers through its excellent fuel economy. At the same time, the all-new Insight will also enable drivers to feel the joy of driving through its zippy, yet light and comfortable driving performance.
· Insight sales is scheduled to begin in spring 2009. As for the price, which is the key factor for mass market penetration, Honda is targeting to offer a starting price below 2 million yen in Japan.
· The all-new sporty hybrid vehicle based on the CR-Z will go on sale by the end of 2010. This vehicle is being developed to become a model which offers new value of the "joy of driving" which only a hybrid vehicle can offer.
· Honda will enhance its hybrid lineup while considering the possibility of applying hybrid technology to medium to large-size vehicles.
<Production>
· Honda will also strengthen its manufacturing system to support sales of hybrid models. As for the hybrid motor, which is one of the key components of a hybrid system, production on a new assembly line added to the Suzuka Factory just began last month (November 2008).
· Combined with the 70,000-unit capacity of the first line, total motor production capacity will be increased to 250,000 units annually. Honda will establish a production system and the capabilities to be prepared for a further increase in demand for hybrid models.
[ Small car model ]
· Along with hybrid models, Honda will focus on and accelerate product development of small cars for which an increase in global demand is expected.
· To minimize the impact of raw material prices, which fluctuate based on various external factors, Honda will build products with a minimal reliance on expensive materials, which will enable Honda to offer its customers products with stable cost competitiveness.
· In order to fulfill strong demand from customers, especially in newly emerging countries where motorization continues to advance, Honda is making progress in the development of a new small car which will be positioned in the class below Fit with a goal to introduce it to the market in two to three years.
· To further enhance its product strengths in the small-size vehicle segment, Honda will make progress in the development of small-size diesel engines.
· To concentrate its resources on hybrid models and small cars, the introduction of medium to large-size diesel models in the U.S. and Japan will be delayed.
Motorcycles will support Honda in the difficult business environment
· Honda's toughness in meeting changes in the business environment comes from the global business foundation built around the three axes of motorcycles, automobiles and power products.
· History shows that motorcycles remain strong in a difficult market environment and have always supported Honda in difficult times. People showed renewed interest in the value of motorcycles which consume less fuel for commuting purposes as well as for their easy-to-own/easy-to-use efficiency.
· In the newly emerging countries in regions such as Asia and South America where motorcycles are being used for everyday transportation, long-term and steady market growth is expected despite some external factors such as changes in economic conditions.
< All-new Wave 100 >
· Honda is planning to install PGM-FI to all motorcycle models sold in Thailand by the end of 2009. The most important model for this FI strategy, Wave 100, will undergo a full model change in January 2009.
· Wave 100 series, which is based on the Cub and thus can be called the "Asian Cub," has been a key model for Honda with annual sales of approximately 2.6 million units in seven countries mostly in the ASEAN region. With the all-new Wave 100, fuel economy was further improved. Moreover, by unifying product specifications as a strategy to pursue smooth introduction to multiple production bases, it was possible to achieve improved efficiency during the development and startup of production as well as significant cost reduction. After the introduction in Thailand, the all-new Wave 100 will be introduced sequentially to other ASEAN nations.
< Electric motorcycle >
· Honda is currently developing a battery-powered electric motorcycle which emits no CO2 during operation, because the characteristics of a battery can be better utilized in the area of motorcycles, which are often used for short distance travel. Honda is aiming to introduce this electric motorcycle to the market about two years from now.
Power Products
· In its power products business, Honda will focus also on the development of energy creation products to support a mobility society which includes automobiles and motorcycles.
< Solar cell business>
· In October 2007, Honda Soltec began production of thin-film solar cells for residential use. In October 2008, the company entered the solar cell market for public and industrial uses in order to accommodate demands from more customers.
< Compact household cogeneration unit >
· Honda is currently developing a new model of Honda's ECOWILL compact household cogeneration system, with a target to introduce it to the market in two to three years.The new model will be equipped with an even smaller and more efficient core unit, a unique Honda technology, pursuing a high level of environmental performance.
< Mini-tiller >
· Targeting the rapidly growing demand in the home gardening market in Japan, Honda will introduce a new mini-tiller with a cassette gas-based engine in spring 2009, under the product name Pianta. Honda aims to cultivate new demand by introducing a new product which uses inexpensive and easy-to-handle cassette gas as fuel source.
Conclusion
· As we face the next year, while hoping for the earliest recovery of the global economy and the market situation, Honda will develop business plans based on an assumption that the situation will worsen next year and will navigate the company through this challenge.
· Especially because this is a difficult time, Honda will not be overwhelmed by immediate matters, but rather, effectively utilize company resources to ensure the steady implementation of long-term initiatives which must be undertaken such as the advancement of environmental technologies. The result of the company's decisions this time will certainly be realized in the form of attractive new products and technologies in several years. Honda will continue making progress based on the belief that Honda's new growth potential will become evident beyond that point.
· Honda is a company driven to achieve continuous growth by the dreams and passions of each Honda associate. Especially when the company faces difficult times, each associate will maintain a high level of initiative and continue challenging.
· Honda will continue earning even more smiles from its customers by creating attractive new products which only Honda can create.
Reader Comments (Page 1 of 1)
meme 1:00PM (12/19/2008)
This is a big "wow" moment. Honda has historically played the role of being hydrogen's biggest backer and the greatest opponent of EVs in the automotive world. If they're starting to experiment with EVs, well, that's pretty much as strong of an acknowledgement as you can get that hydrogen has been a failure. That's the equivalent of Tesla Motors announcing a fuel cell motorcycle.
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anon 5:11PM (12/19/2008)
"Honda has historically played the role of being hydrogen's biggest backer and the greatest opponent of EVs in the automotive world."
Have they been lobbying for tax credits for fuel cell cars? Or lobbying against EVs?
"If they're starting to experiment with EVs, well, that's pretty much as strong of an acknowledgement as you can get that hydrogen has been a failure."
I'm sorry but I see it completely differently.
Investing in technology is like buying stocks. It's best to be diversified. Buying stock B after buying stock A does not mean that you are giving up on stock A.
Honda is getting into batteries on the cheap at a small scale. Depending on how things turn out, they can stop (without having spent a lot of money) or they expand and deepen their investment.
That sounds pretty smart to me.
It's important to remember that Honda is a company run by engineers. Historically they've been cautious. Unlike Toyota and Nissan they held off on building a V-8 engine plant and a V-8 car/truck to go with it. That hurt them in the late 90s and the early part of this decade, but it's paying off now big time.
If anyone is being clear eyed about the pluses and minuses, risks and rewards of investing in various pieces of technology and deserves the benefit of the doubt it's Honda.
paulwesterberg 1:06PM (12/19/2008)
If this switch frees up capacity in their motorcycle engine pipeline maybe they can sell some to GM for use as volt range extenders since GM needs small powerful engines.
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paulwesterberg 1:12PM (12/19/2008)
Honda goldwings are big business, and I bet they will have an easy time transitioning their customer base. Goldwings are the perfect electric cycle they known for being big, heavy, quiet cruisers.
Other manufacturers like Harley Davidson(loud/powerful) and Dukati(sport bikes) will have a hard time making the transition to electric.
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anon 4:58PM (12/19/2008)
I'm guessing that Honda's first electric bikes will be off road only dirt bikes.
When you consider:
- a lot of communities object to dirt bikes because of the noise. Electric bikes are a way to sell dirt bikes to people who live in those areas.
- you have to trailer a dirt bike to the trail / ride area. This means the range issue doesn't matter as much.
- Honda makes generators and it makes sense to sell them together. That is, you take your dirt bike to the trail, ride it for a bit, plug it into your generator, charge it, and then go ride some more.
gorr 2:31PM (12/19/2008)
It depend if it's a battery of a hydrogen fuelcell.
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jpm 4:21PM (12/19/2008)
From the original article:
"Honda is currently developing a battery-powered electric motorcycle which emits no CO2 during operation..."
Gorr, why are you so obsessed with the fuel cell? It's not viable. The Honda FCX Clarity costs half a million.
Tim 4:02PM (12/19/2008)
Let's hope it is a motorcycle design and NOT another damn gay scooter like the Vetrix.
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jpm 4:17PM (12/19/2008)
Seriously. The Vetrix is ugly as hell. WTF were they thinking?
I'm betting Honda will come up with a much more stylish design.
Electric motorcycles are the answer! Even if we get EVs on the road eventually, the roads will be way over capacity.
DanYanoff 4:27PM (12/19/2008)
So they finally have waken up and smelled the coffee. Trouble with the ICE bikes is they are extremely "dirty" having no catalytic converter. Its only a matter of time before they are outlawed starting in traditionally green states and Europe. As well there is a trend of ppl buying bikes to save on fuel. And finally there are already charging stations in existence. Add 3 together and you have a huge and $$$ promising market niche which Honda wants to tap into before its too late, or who knows, to maybe get back some of the money wasted on hydrogen R/D.
Another reason for the head-first plunge is they must have figured it would cost well under 2 grand to get a LifePo4 but then a motor will cost close to nothing in comparison to ICE+tranny+starter+ignition+exhaust+....so in the long run they are definitely cutting the costs.
Kudos, Honda, bring it on soon!
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GoodCheer 5:22PM (12/19/2008)
Hmmm, some numbers.
The Vectrix has nominal power consumption of 67-106 Wh/mile (slightly better than the Aptera, but of course much less useful).
Honda-GS-Yuasa Li batteries contain 99Wh/kg, and 188Wh/l. So the range of the bike (in rough numbers) will probably be about 1 mile/kg of battery... so long as you don't spend too much time going super-legal speeds.
To get to 100 miles range (which is more than I suspect they would design for), they would need 100 kg of batteries (220 #), and 53 l of battery volume (~14 gal). Given that the motor could be about the size of a cereal bowl and no transmission is needed I would think they should be able to do it, make it look good (Honda bikes always do), and come in under about 450# all up.
Things are getting interesting.
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gorr 7:11PM (12/21/2008)
ARE you crazy, a batteries power motorcycle??? I have a kawasaki 600 cc zx-6r that goes to 130 mph and have an unlimited range in summer all over the world even if i just run in canada and north u.s.a. I do 200 miles or more a day. I won't buy less then that. Only hydrogen gas can replace gasoline in an ice(internal combustion engine ) or a fuelcell. IF it is a fuelcell then it can serve as an electrical generator on power shortage or in camping.
Don't believe a single instant the numerous anti-hydrogen folks that act here fulltime, they are paid to impede and their budgets amounts to billions of dollar. The budget of hydrogen folks are zero because not a single gadgets is for sale to normal customers, they preferred sell hydrogen technologies to goverments and big oil instead of offering it to customers. They say that it's because there is no hydrogen infrastructure and they ask petrol retailers and producers to sell a competing products to their own products, silly. If they want to sell a hydrogen gadget( car, truck, motorcycle, lawnmower, electric generator, ships, airplane, trains, self powered building) then they have to fit an hydrogen production machine to that gadget. It's the only game changer thing that can be, the rest like batteries are just there to try to get you asleep and the job seem to be done to the majority of drained-brains.
Im sure that obama get there to the white house by repeating what he leaned in site like this one. I noticed over the years that if you emit an idea that never been said before and you are the truly owner of that idea then everybody will try to kill you and your reputation and say it's them that had this idea. So if i die tomorrow in an accident, then hydrogen gas will be adopted by millions of peoples and my name will be erased forever like i said nothing before the accidents. I noticed that when i ceased to speak for hydrogen. I noticed that after a week or two the people get bored and start to publish hydrogen-related article once more, LOL.
People are not here to talk and propose green cars, they are here to do cheap and inneficient pastoral conselling without a method and without results. It's cheap religious redemption here all day long. You change the name but what you're talking about is always religious. It is ' infinite energy for all the time...' Think about it. Me im talking only on how to move a car forward without guilt and efficiently. You , you don't believe in nobody and in nothing and your hope is a battery, LOL.
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Zero X Owner 1:14PM (12/24/2008)
meh on slow Honda. They've been saying that for over three years. There are already excellent off road electric motorycles that have been selling for a while.
Try a real one, on the roads and in the hands of many customers now, such as myself.
http://www.zeromotorcycles.com/
@ Gorr - your motorcycle can't handle where I take my Zero X off-road. I know - I also have a Suzuki VStrom DL650 which is specifically designed as a dual sport, unlike your Kawasaki super sport bike, and my Zero X crushes it on off the line acceleration, handling, and off road performance. My Zero X is also my daily driver (I kitted it, so it's already fully registered and street legal) with plenty of range for me to go to work and back and still have juice after work to play off-road.
Plus it's cheaper up front than the closest equivalent gasser, cheaper to fuel, virtually no maintenance and a total breeze to clean.
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