This is a presentation summary of my report on hybrid vehicles for my Strategic Management of Technology class.

1. Honda Soichiro Honda 1946 Hamamatsu, Japan

2. Honda, a brief history Honda Technical Research Institute, 1946 Bicycle engines Began making motorcycles 1949 Came to US market in 1959 First sports car – Japan, 1963 Honda Civic - 1972 Insight Hybrid introduced – Japan 1997 (US 1999)

3. Honda Philosophy Has remained independent Cautious about being first-movers Glo-calization strategy – 33 countries First HEV in America Environmental Responsibility Employee recognition for development – and their independence Matching consumers’ needs with commitment to the environment

4. Honda Insight HEVbackground Loss Leader for first few years – Penetration Pricing Slow initial sales View of HEV design by Honda and other automakers – this is key to my report and pivotal for Honda Parallel development with FC technology

5. More on Honda’s independence No mergers or acquisitions No industry memberships No joint ventures Chose not to license its technology Reasons: for design control Retain influence on cleaner technologies Internalization of knowledge and learning Company direction, as expressed by Honda president Hiroyuki Yoshino, “It is better for a person to decide about his own life than having it decided by others”

6. Cost/Benefits of the InsightThis example can show the pragmatism used at the company instead of the all-or-nothing right-now approach used by other automakers Costs or risks include: Selling the car at a loss for market presence Uncertainty of buyers faced with a new technology – another key point Smaller take-up would mean higher maintenance costs for both company and consumer Benefits (perceived and real) include: Accessed at regular gas stations Improved fuel consumption Image of environmental responsibility Comparable performance to traditional combustion engine cars

7. Internal Debate- The Real Question Was it productive to delay production of Fuel Cell automobiles in favor of promoting its existing hybrids? Should Honda abandon Hybrid vehicle technology to focus solely on Fuel Cell design? Or continue with the Hybrids that are gaining popularity and allow time for a wait and see approach for FC vehicles?

8. Developing Technologies at Honda- according to HSV, perhaps the biggest risk-taking area of the company Fuel Cell technology Nanotechnology Zero Emissions technology Design Streamlining Robotics Advanced Materials Alternative Energy Check this car out

9. The one you’ve been waiting for Last but not least – ASIMO