The financial crisis of 2009 and the 2011 disasters in Japan and Thailand have all had a major impact on Honda Motor, Japan's third-largest carmaker, and how the OEM sources the parts and components it needs to keep production lines up and running.
Supplying Honda 2012 examines how the company was affected by these largely unforeseen events and now, how Honda is planning to expand production across its global factory network in order to regain lost market share.
Starting with a look at the relevant company financial details, the report goes on to review Honda's production and platform strategy , including cross-model part sharing strategies and a forecast of future vehicle production (by global nameplate, through 2017). Supplying Honda 2012 also takes an in-depth look at how the carmaker handles part buying globally and by region, including analysis of how the company sources raw materials and how extended relationships with suppliers are managed to help improve cut costs for both the supplier and OEM. While this is important across the industry, it is particularly critical for Honda as the carmaker looks to secure an increased number of lithium-ion battery packs to support production of additional hybrid models in order to meet its own CO2 reduction goals.
Other elements featured in the report include a list of suppliers delivering parts for current Honda production and the processes driving internal OEM quality management. For additional insight into how Honda of America Manufacturing handles part procurement, this latest version of Supplying Honda includes an exclusive interview with Tom Lake, Division Manager for North American Purchasing, who in 2011 alone bought $16 billion of parts and components.