American Honda Motor Company, Inc.

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American Honda Motor Company, Inc. Vision,
Reality, and Reputation David Spyra Manager,
Marketing Information and Research Corporate
GrantMakers Summit Washington D.C. June 12, 2003
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Action without philosophy is a lethal weapon
philosophy without action is worthless. -
Soichiro Honda
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Carrying the torch with our own hands. - Takeo
Fujisawa
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It is our people who are independent - it is
their passion - and our corporate strategies are
simply a plan that enables them to pursue their
dreams for the benefit of the customers. -
Hiroyuki Yoshino, President and CEO of Honda
Motor Corporation
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HNA Production Capacity
Honda of Canada Mfg. (HCM) Alliston,
Ontario Current Capacity 390,000 vehicles
Quick Facts Total North American capital
investment more than 7 billion. More than 77
percent of Honda and Acura automobiles sold in
America in 2001 were produced in North
America. Models manufactured exclusively in North
America 4 Accord Coupe 4 Acura MDX 4 Civic
Coupe 4 Acura TL 4 Odyssey 4 Acura CL 4 Pilot
4 Element (12/02)
Honda of America Mfg. (HAM) Current Engine
Capacity Anna (AEP) 1.1 million New Engine
Capacity 1.16 million Current Vehicle
Capacity Marysville (MAP) 440,000 East Liberty
(ELP) 240,000
Honda Mfg. of Alabama (HMA) Lincoln,
Alabama Current Capacity 150,000
vehicles 150,000 engines New Capacity 300,000
vehicles 300,000 engine
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Honda de México (HdM) Guadalajara,
Jalisco Current Capacity 30,000 vehicles 25,000
engines
Vehicle production capacity increases from 1.25
million to 1.4 million units in late-2004
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Honda Corporate Strategy
A company that society will want to exist.

• Value Creation
• Top class in mobility products
• Top class in customer relations
• Challenge business opportunities in new areas

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Honda Corporate Strategy
A company that society will want to exist.

• Glocalization
• Made by Global Honda - efficient use of global
  resources
• 20 million customers per year
• Continue development of local operations

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Honda Corporate Strategy
A company that society will want to exist.

• Commitment for the Future
• Challenge to achieve high level of safety
• Challenge to achieve 0 burden to environment
• Developing alternative energy technologies,
  including fuel cells

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Honda Corporate Strategy
A company that society will want to exist.

• Value Creation
• Top class in mobility products
• Top class in customer relations
• Challenge business opportunities in new areas

• Glocalization
• Made by Global Honda - efficient use of global
  resources
• 20 million customers per year
• Continue development of local operations

• Commitment for the Future
• Challenge to achieve high level of safety
• Challenge to achieve 0 burden to environment
• Developing alternative energy technologies,
  including fuel cells

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American Honda Foundation since 1984

• Has made 337 grants
• In 40 states
• Totaling nearly 15 million dollars

Including

• Programs for youth education
• Science / technology teaching
• Causes related to
• Social problems
• Environmental issues
• Disabled individuals
• Minority grants

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Reputation Alignment - Is reputation evolving to
fit AHMs vision and stakeholder expectations?
Reputation (Image)
Reputation Research
Image / Culture Gap
Image / Vision Gap
Culture / Vision Gap
Culture
Vision
Credit Adapted from Harvard Business Journal,
February 2001
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Attributes Studied to Understand Overall Company
Image
Customer Focus
Product/Service Quality
Leader in Industry
Company You Can Trust
Leader in Industry
Dependable/Reliable
Understands Customers Needs
Prod/Services Good Value
Leader in Tech Development
Resolves Problems Effectively
Sells Safe Products
Innovator in Industry
Stands Behind Products
Responds to Market Changes
Treats People Fairly
Customer Focused After Sale
Brand Recognition
Dealer
Financial Performance
Treat Customers Fairly
Well-Positioned for Future
Well-Recognized Brands
Enduring Appeal
Financially Sound
Wide Array of Products
Communication
Good Corporate Citizen
Management Quality
Good Corporate Citizen
Image Consistent with Products
Strong, Capable Mgmt Team
Advertising You Like
Positive Impact on Community
Participates in Motor Sports
Supports Community Events
Creates Jobs in U.S.
Conducts Business Ethically
Supports Charitable Causes
Creates Opportunities for Min/Women
Minimizes Harm on Environment
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What is your overall opinion of each companys
environmental activities?
Understanding Environmentalism is Key to
Improving Corporate Image
Excellent/Good Opinion Among those
Very/Somewhat Familiar with Companys
Environmental Activities
A Difference of 6 is Significant
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AHM message related to Corporate Citizenship
Image tracking -Morehouse
African-American Segment

• Good Corporate Citizen
• Company That Has a Positive Impact on the Quality
  of Life in the Community
• Company that Supports Charitable Causes
• Supports Social Issues and Causes
• Ad Communicate with Diverse Audience

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AHM message related to Corporate Citizenship
Image tracking -Ride for Kids

• Good Corporate Citizen
• Company That Has a Positive Impact on the Quality
  of Life in the Community
• Company That Supports Community Organizations and
  Events
• Company You Can Trust

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AHM message related to Corporate Citizenship
Image tracking -FCX

• Leader in Industry
• Innovator in Industry
• Leader in Technological Development
• Company that is Well-Positioned for the Future

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AHM message related to Industry Leader Image
tracking - Racing

• Company That Participates in Motor Sports
  Activities
• Leader in Technological Development
• Company You Can Trust
• Leader in Industry

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Understanding Safety is Key to Improving
Corporate Image
Hondavehicles comprise six out of the ten
models industry-wide that achieve all-around Five
Star safety ratings. Furthermore, Honda is the
only automotive brand with more than one model
that achieves all-around Five Star safety.