Honda’s vision for the future
As I recently became president and CEO of Honda Canada Inc., I welcomed the unique opportunity to reflect on my more than 30 years in the Canadian auto industry. When I started at Honda in 1989 as a district sales manager, the world and the automotive industry were very different than they are today. Some would say life was a lot less complicated back in the “good old days.” Knowing your past successes, as well as understanding the challenges you’ve faced along the way, helps to establish a solid platform for a clear and steadfast vision for the future.
What’s my reflection on Honda’s history?
In 1969, Honda came to Canada as a small company with big dreams. Beginning with motorcycles and power equipment, we worked hard and, over time, our products have earned the respect of the marketplace.
The durability, quality and reliability that our vehicles are now known for has led to more than 4 million Honda cars and light trucks being parked in driveways across this country — over 2 million, or roughly 50 per cent, of those being Civics. It’s worth noting the success of the Honda Civic, which is approaching 20 years as the bestselling passenger car in Canada, has fostered the organic growth of a passionate and dedicated Civic Nation — a community made up of Canadians from all walks of life who are united by their love of the Civic.
But we don’t just sell vehicles; we build them, too — by Canadians, for Canadians. As the first Japanese automobile company to open a manufacturing facility in Canada, Honda of Canada Mfg. (HCM) in Alliston, Ont., has an average annual capacity of 400,000 units and plays an unprecedented role as the global lead plant for the 10th generation Honda Civic.
Our controlled growth over the years has required significant investment in both our sales and manufacturing operations. All told, Honda’s total investment in Canadian facilities tops $4.7 billion, and each year HCM sources nearly $2.1 billion in goods and services from Canadian suppliers.
I feel these significant investments in Canada solidifies our commitment and are a true reflection of the efforts of both our supplier network and nearly 19,000 sales and manufacturing associates, to produce and sell the best Honda products for Canada. Recognition must also go to our 234 Canadian Honda dealers who retail approximately 100,000 Canadian-built Civic and CR-V units every year.
So that answers the question of where we’ve been. Where are we headed?
From a global vision perspective, Honda Motor recently revealed its 2030 Vision as a guiding light for all Honda companies, which I believe we must aspire to locally. Placing the utmost priority on new electrification and advanced safety technologies will serve us well to lead mobility advancement and enable Canadians to improve their daily lives, which addresses a key pillar in Honda’s new global vision. Adding alternative fuel vehicles, such as Clarity, to the Canadian lineup will be a new frontier for us, but we’ve been working hard to prepare and are poised for success.
However, at Honda, we define success by more than just units sold; we strive to be a company that Canadians want to exist. Through the various philanthropic and funding activities of the Honda Canada Foundation (HCF), we’re committed to giving back to the communities where our associates, dealers and customers live, work and play. To us, offering associate volunteerism programs and enabling the realization of dreams by supporting organizations that focus on four pillars — family, environment, engineering and education — will allow us to make a positive contribution to Canadians everywhere well into the future.
No doubt unique challenges for the Canadian automobile industry lie ahead. Factors such as foreign exchange rates, competition from other jurisdictions for manufacturing plants, subnational policy initiatives (e.g. high energy costs, and cap and trade regulations) are all issues which the industry must address.
I can assure you, Honda Canada is here to stay. W believe that by continuing investment in Canada and working closely with our stakeholders and all levels of government, we are doing our part to address these challenges to ensure the future of the Canadian auto industry remains a strong, dynamic and innovative component of the Canadian economy for years to come.
That’s our vision for the future.