Honday Today

Regulations put by the MOT in conjecture with JAMA with regards to change in
tax laws and make the micromini segment more appealing to the general public
Four main alternatives:
1.
2.
3.
4.

Increasing stroke length

Expanding the bore
Changing both the stroke and the bore
Redesign the whole engine

About Honda:
Largest motorcycle manufacturer
Largest engine manufacturer motorcycles
Focus on RnD
Egalitarian culture
Management principles
Proceed with ambition and youthfulness
Respect sound theory, develop fresh ideas, and make the most effective
use of time
Strive constantly for a harmonious flow of work
Be ever mindful of the value of research and endeavor
Automobile Development:

Concept development alternative approaches for designing the car and

possible target market segments for the car
Engine Development advanced engineering projects that explored novel
engine designs and assessed their possibilities
Vehicle design Styling, packaging, body and chassis, and component
engineering
Process Engineering designing, refining, and testing the cars production
process

Hondas Development Process:

Design of new car and new engine was too much of a risk as stated by industry
competitors. Honda felt each car deserved a new engine. Needed a coherent
match between the engine and the car. Only then can the true character of the
car be revealed.
Large project leaders were critical in major development processes. Reviewed,
oversaw, advanced engineering projects to obtain data on future technical
options. Solicited opinions from dealers and customers. Honda believed the LPLs
understood emerging trends and hence put their faith in them
Key parameters: coherence, balance and integrity.

Micromini Car Market in Japan:

(to be updated)
Competitors in the Micromini Market:
1. Suzuki 28% Market share. Alto, TB and UR seat configuration with a 800cc
engine
2. Daihatsu 27% Market share. Mira and Leeza micromini cars had tall body and
upright seats with an 850 cc engine. Toyota owned 14% of Daihatsu.
3. Mitsubishi 16% MS. Minica had tall body and upright seats. 800cc engine
4. Fuji 15% MS. Rex TB and UR seats. Models with 700cc displacement from
1986.
5. Honda 15% MS. Today with low body and low seats. Introduced in 1985,
updated in 1988.
6. Mazda 2% MS. Suzuki chassis under OEM agreement. Carol minicar.

Transverse-mounted front wheel drive configurations to maximize interior space.

Engine in-line, usually with 3 cylinders.
Contribution margins in the range of 5% of the factory selling price, which was
80% of the retail price.
Honda Today:
Active in the micromini segment. N360 was very popular, introduced in 1966.
Discontinued in 1974 to allow Honda to focus on larger cars.

Today introduced in September 1985.

For the dealers who wanted micromini cars.
Aimed at young female users who would later upgrade.
Marketed Todays elegance and sophistication
66.5% of todays users were female and 58.8% in the micomini segment
were females
Design was different from the other cars in the segment. Low and
streamlined body configuration. Did not sacrifice on roominess.
Had only a two cylinder engine as compared to a three cylinder engine of
the other competitors

Reconfiguring the Todays Engine:

Updated exterior styling and new engine

Redesigned into a three cylinder engine from its earlier 2 cylinder engine
3 and half years
Involved a capex in excess of 5 billion yen.
Considerable time and effort needed for new engine design. New casting
were required, for new dimensions. Assembly process was reconfigured.
January 1988, full production began and by Feb the new model was
introduced

Similar low body and low seat configuration with substantial internal space
Engine was elegantly designed, integrated with the cars design, and had a
good balance of stroke to bore dimensions.
Other models offered a turbocharger
By end 1988 came the news of the modified requirements of the
micromini segment

Experimenting with Engine Expansion:

Kamimura had to create challenges to hold on to his engineers attention

and prevent them from going off to other projects
Expected engine size was to go upto 800cc
Vary engine parameters by keeping as much as the existing design as
possible
His outlook was to not replace the existing and manufacture on a large
scale but prepare the company for a new product in the near future.

Decision Time:

Keen on minimizing the number of changes on his existing model. The

high costs otherwise would be very difficult to justify
Changing the engine bore was the safest and cheapest option, but it was
critical not the hamper the driving performance and fuel economy of the
car
Jama recommendations: engine displacement 650-690cc & increase car
size 50-100mm
Timelines would have to be compressed to get the car ready by January
1990
Decision was to be made which of the recommendations had to be
proceeded with