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Honda adopts English as its official language in meetings worldwide

Japanese was clearly the language of operation while we visited Honda's global headquarters in Tokyo last week, as well as its newest factory and principal test track. Chief executive Takanobu Ito (pictured above) spoke to us through an interpreter. But according to the latest reports, the Japanese language is being phased out at Honda in favor of English.
This according to Bloomberg, which points out that tire manufacturer Bridgestone and rival automaker Nissan have implemented similar measures, as have Japanese retail giants Fast Retailing Co. and Rakuten Inc. Honda's shift from Japanese to English comes as part of a shift in focus from central decision-making to a more regional model, but while English has clearly emerged as the international language of business, it's no coincidence that it's also the dominant language here in America. Bloomberg points out that over the 12-month period that ended this past March, North America accounted for a massive 47 percent of Honda's revenues worldwide.

Honda names first woman, foreigner to its board of directors

General Motors may have made headlines when it recently appointed the industry's first female CEO, but Honda has long lagged woefully behind the times when it comes to the diversity of its top management. In fact, its entire board has until now been composed entirely of Japanese men, with not a foreigner or a woman in sight. But as Reuters reports, that's all changing with the nominations to its latest board.
The slate of new directors named to Honda's board includes one Hideko Kunii, a gender-equality advocate and engineering professor from the Shibaura Institute of Technology. A graduate of the University of Texas at Austin, Kunii spent the bulk of her career at Japanese electronic imaging company Ricoh. Alongside Kunii, Honda has also named Tomoko Mizoguchi to the board as responsible for the company's South American operations, making him the first foreigner to serve on the company's board of directors. (Well, almost: Mizoguchi was born in Brazil, but of Japanese ancestry.)
The appointments follow the recent switch Honda made in its official language policy from Japanese to English, signaling a shift in outlook for a company that has long stuck to traditional Japanese business models. Honda was the first of the major Japanese automakers to begin manufacturing in the United States, and has long relied on hiring local managers to run its regional operations around the world. It has, however, resisted placing foreigners on its board of directors until now, relying instead on senior male managers promoted from within its ranks to serve on its board. This in comparison to Toyota, which has seven foreigners and one woman on its 68-member board of directors, and Nissan, which has fifteen foreigners (including its chief executive) and one woman on its 58-member board.

Honda S660 proving popular with middle-age Japanese buyers

The S660 roadster has been a success so far for Honda. (At least, that is, insofar as a niche-market sports car limited to the Japanese Domestic Market can be considered a big seller.) It just hasn't resonated with the customers that the company expected. Honda revealed the S660 in concept form at the Tokyo Motor Show nearly two years ago, and subsequently put it into production. The convertible Kei car pays homage to models like the S500, S2000, and Beat. It packs a tiny 660cc three-cylinder engine mounted amidships and driving the rear wheels. Despite its connection to past models, the S660 features an entirely modern design that, along with its low price, was expected to appeal to younger buyers. But while Honda has already sold out all 8,600 examples it's slated to build this year, a surprising 80 percent of them have been snapped up by customers over the age of 40 who are mostly buying them as second cars. The development is not entirely isolated. As Bloomberg points out, the number of licensed drivers in Japan "under the age of 40 has fallen 46 percent over the last 13 years." Those are rather startling numbers that dwindle the market down for youth-oriented vehicles like the S660. Honda is expected to begin taking orders for next year's allocation of S660s in October. At that point, the company anticipates the average age of its customer base will drop. But with fewer young drivers on the road in Japan, it shouldn't expect it to drop by much.