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American Honda Distinguishes 15 Suppliers with Premier Partner Award

Award recognizes partners who embrace Honda’s philosophy of exceeding customer expectations with exceptional quality and service

Fifteen distinguished suppliers to American Honda Motor Co., Inc. have received the 2014 Premier Partner Award from American Honda President & CEO Takuji Yamada today in a special ceremony and reception at the Torrance Marriott South Bay Hotel in Torrance, CA. This year’s recipients were selected from a pool of more than 1,000 eligible companies based on excellence in quality, value and customer service that defines Honda’s philosophy and reputation.

Premier Partner Award winners play a unique role in supporting Honda businesses and operations, including Honda and Acura automobiles, automobile engines and transmissions, Honda all-terrain vehicles, power equipment products, general purpose engines, and the HondaJet advanced light jet. Nine of the 15 recipients are repeat winners. This year’s class of suppliers includes a number of small businesses and minority-owned businesses.

“Amid record sales and continued strength across Honda companies, we are asking our suppliers to renew their commitment to exceptional quality and service,” said Charles Harmon, American Honda’s senior manager of procurement and corporate services. “We thank the outstanding organizations recognized today for answering that call and helping Honda to deliver on our own promise to our customers.”

2014 American Honda Premier Partner Award recipients include:

  • Accenture, LLP, for providing sales incentive management and reporting solutions.
  • ADP Lightspeed, for providing business management solutions.
  • Atlantic Container Line, for providing international transporting services.
  • BI Worldwide, for the development and execution of customer engagement programs.
  • CH2M Hill, for providing facility management and administrative services.
  • Delta Air Lines, Inc., for creating specific travel lanes and lowering prices on our most trafficked destinations.
  • flexis North America, Inc., for designing systems that balance dealer requests against production volumes.
  • Maritz Inc., for creating in-dealership launch training programs.
  • OC Tanner Recognition Company, for developing the Associate Service Award Recognition Program, integrating elements of the Honda brand, mission and values.
  • Pacific Technology Solutions, for E-learning and enterprise level software development solutions.
  • Resource One, for serving as our recycling management resource and embracing Honda’s zero landfill initiative.
  • RMI International Inc., a provider of physical security services at facilities nationally.
  • Sinclair Printing Company, for printing and delivery of informational materials in our vehicles.
  • Targetbase, for marketing strategy and consultation, and the development and management of customer databases.
  • Urban Science, for developing online systems that support customer retention.

Supporting Small Businesses and Supplier Diversity 
Honda desires to establish long-term relationships with suppliers based on trust and mutual benefit, and with a commitment to diversity. Working alongside minority supplier development councils and the Small Business Administration, diversity workshops educate potential ethnic minority and women-owned suppliers on Honda business operations. The workshops facilitate strategic alliances and joint ventures, and assist with loan and venture capitalization, empowerment programs and other available resources. In June, 2014 Honda joined 25 corporations for a discussion with President Obama about strengthening small business suppliers by supporting initiatives like increasing working capital, so they can grow their businesses and hire more workers.

Honda Honors Suppliers of Indirect Products and Services; Annual Purchases Exceed $1.4 Billion in Ohio and Indiana

Honda has honored 25 suppliers that provide indirect products and services to five Honda automotive plants in Ohio and Indiana. Driven by record auto production in North America in 2013, Honda also announced that its purchasing for Maintenance, Repair and Operational (MRO) services in this region set a record of more than $1.4 billion for the fiscal year ending March 2014.

The MRO purchasing milestone came on the heels of record Honda auto production and parts purchasing in Ohio and Indiana in 2013 with the production of 976,361 automobiles at it three auto plants in Marysville and East Liberty, Ohio, and Greensburg, Ind. MRO purchasing also supports operations of Honda’s engine plant in Anna, Ohio and transmission plant in Russells Point, Ohio.

Different from suppliers that provide parts and materials for the mass production of Honda products, the more than 5,000 MRO suppliers support Honda plants by providing a wide variety of equipment, products and services that support the manufacturing of automobiles, as well as their engines and transmissions. These companies include local businesses as well as national companies, and many have grown along with the expansion of Honda’s automobile manufacturing in North America since Honda began U.S. auto production at the Marysville Auto Plant in 1982.

“With a host of pinnacle products coming to market next year, and with record production and sales targeted in the coming years, Honda will continue to transform its business by advancing technology in our products and manufacturing operations to maximize joy for the customer,” said Tom Lake, vice president for Purchasing and Cost Planning at Honda North America, Inc. “We thank our suppliers for the important role they continue to play in our success by bringing new ideas and value to our business.”

In 2013, Honda manufactured a record 1.78 million automobiles in North America, which led to the purchase of more than $25.5 billion in parts and materials in the region from 650 parts suppliers, also an all-time annual record. Parts purchasing for Honda plants in Indiana and Ohio last year totaled $12.2 billion from suppliers in North America, including more than 200 in Ohio and Indiana.

More than 260 MRO suppliers for Honda plants in Ohio and Indiana attended the annual conference in Columbus for the awards ceremony, networking and professional breakout sessions. Developed to recognize world-class business characteristics, the 25 suppliers were honored for achievements in the categories of Special Recognition, Outstanding Value, Performance Excellence and Supplier of the year.

“The purpose of the awards is to recognize suppliers that are bringing us value and helping Honda to advance our capabilities and deliver a better vehicle to our customers,” said Monica Oliverio, department manager of North American Indirect Procurement at Honda North America, Inc. “We want our suppliers to truly grow with us as we continue to expand and advance our operations in North America.”

Bill Easdale, vice president of Honda of America Mfg., Inc. added that the involvement of both indirect and parts suppliers is important as Honda’s North American operations take on new responsibilities to engineer and manufacture products for customers in this region and globally.

“In order to meet the responsibility of the lead role we have been asked to play in North America and to prepare for the next phase in our growth and evolution, we continue to invest in our business and our people,” Easdale said. “We have a long-term commitment to Ohio and to all of our operations in North America, and this should give our suppliers the confidence to grow with us and to innovate with us, by bringing their best new ideas to Honda.”

About Honda in Ohio and Indiana

Honda of America Mfg., Inc. employs 10,000 Ohioans at the Marysville Auto Plant, East Liberty Auto Plant and Anna Engine Plant, along with operations that support its manufacturing.

With capacity to produce 440,000 automobiles per year, the Marysville plant currently is producing the Accord Sedan, Coupe and Hybrid models, and the all-new Acura TLX Sedan. The East Liberty plant produces the Honda CR-V and Crosstour, and the Acura RDX, with capacity to manufacture 240,000 automobiles per year.

Honda’s engine plant in Anna, Ohio has capacity to produce more than 1 million V-6 and four-cylinder engines per year, primarily for Honda’s auto plants in Ohio, Indiana and Canada. In addition to production of these engines along with high-precision steel engine components, the Anna plant also manufactures sophisticated pulley components for Honda’s continuously variable transmissions (CVTs).

Located in Russells Point, Ohio, Honda Transmission Mfg. of America, Inc. employs 1,125 associates and has capacity to produce more than 1 million automatic transmissions and CVTs per year. The plant also manufactures gear sets, four-wheel-drive systems and four-wheel-drive transfer components.

Honda Manufacturing of Indiana LLC employs 2,300 associates and has capacity to produce 250,000 vehicles per year. This plant currently manufactures the Civic Sedan, Civic Natural Gas and Civic Hybrid, along with the Acura ILX Sedan and Hybrid models.

About Honda in North America

Honda established operations in America in 1959, and now employs more than 39,000 associates in its North American sales, R&D and manufacturing operations with a capital investment of more than $16.3 billion.

Based on its longstanding commitment to “build products close to the customer” Honda operates 16 major manufacturing facilities in North America, producing a wide range of Honda and Acura automobiles, automobile engines and transmissions, Honda all-terrain vehicles, power equipment products such as lawn mowers, mini-tillers and general purpose engines, and the HondaJet light jet, using domestic and globally sourced parts.

Eight Honda auto plants in the region, including four in the U.S., have the capacity to produce 1.92 million automobiles each year.  In 2013, 94 percent of the Honda and Acura automobiles sold in the U.S. were produced in North America. Those plants today manufacture 11 different models, including four passenger cars and seven light trucks.

A fifth U.S. auto plant, the Performance Manufacturing Center, is under construction in Marysville, Ohio, and next year will become the exclusive global production location for the next generation Acura NSX.

Honda operates major research and development centers in the U.S. that fully design, develop and engineer many of the products Honda produces in North America.

Support for Small Business Suppliers is a Tide that Lifts all Boats

This is a great brief article that explains how American Honda vehicles sold in the United States are. Not only are they made in America, which supports local workers and economies, but Honda strives to support smaller, local businesses to increase that impact. This is an article from the perspective of the VP of Honda North America.

Our Perspectives
Rick Schostek, Executive Vice President, Honda North America, Inc.

When the White House asked Honda to sign a pledge in support of suppliers that are small businesses, there was never a moment of hesitation, because the goal of supporting small business is vital to the success of Honda in America.

It is a little known fact that Honda was established in America in 1959 with less than $125,000 in working capital.  With $100,000 of that going to purchase a very small building in Los Angeles, we actually had to borrow money to buy a truck to deliver our motorcycles to dealers.  We have never lost sight of the challenges of doing business as a small company.

Today, the small businesses that provide us with parts for our automobile, powersports, power equipment and aircraft production in America, and that provide services ranging from security to landscaping, are integral to Honda’s U.S. sales, manufacturing and R&D operations, and we have a long and deep commitment to hands-on collaboration.

At the core of Honda’s approach is our desire to establish long-term relationships with suppliers, based on trust and mutual benefit, and with a commitment to diversity.

So it was that on July 11, one of our suppliers, Billy Vickers, the president and chief executive officer of Modular Assemblies Innovations (MAI), of Dublin, Ohio, joined me in attending a roundtable discussion with President Obama at the White House.  During the discussion Honda signed a pledge to assist small business suppliers by reducing capital needs and providing insight into best practices.

We recognize that small business suppliers work on tight budgets with capital as a premium.  These constraints can stifle growth, innovation and efficiency.  Additionally, while smaller suppliers may have opportunities to improve their efficiency, they often lack the resources and expertise, which can put them at risk of falling behind their big business competition.

As Honda has expanded its manufacturing operations, we often work with existing, smaller companies to expand their business to serve our needs.  For instance, Billy Vickers’s company, MAI, has grown in Ohio, Alabama and Indiana, along with the growth of Honda operations in these states, and now employs more than 250 associates.

One of the ways in which Honda has supported a minority-owned business such as MAI is by providing adjusted payment terms, reducing MAI’s upfront costs by assisting with the purchase of costly components and giving the company the cash flow it needs to operate and expand its business.

We also provided on-site process engineering assistance at MAI to collaborate on best practices to help MAI improve its efficiency and quality in the company’s manufacturing processes. Because of this teamwork, MAI has been able to grow its business and venture into new areas. All of these approaches are aligned with the White House pledge.

We will continue to pursue and expand these types of efforts to help our small suppliers grow and invest in the United States.  The needs of each small business are different, but we understand reducing capital needs means the ability to expand, and learning from others is often the best way to improve efficiency.

Honda is no longer a small business. In 2013 alone, Honda purchased more than $23 billion in parts and materials from more than 530 suppliers across the country – that was a new record for our company. Further, Honda purchased another $10 billion in a wide variety of equipment, products and services from more than 5,000 MRO suppliers (Maintenance, Repair and Operational).

But we still operate with the spirit of a young and small business – and we are pledged to support other companies that are now in that position.  It is a great “win-win-win” formula for the supplier, for Honda and for the U.S. economy as a whole.

Honda Parts Purchasing Surpasses $300 Billion in North America

Honda News YOU Can Use!

Honda honored more than 100 automotive parts suppliers in North America for outstanding performance in 2013 at its 30th Supplier Conference last week, and announced that Honda has purchased more than $300 billion in parts and materials from its more than 650 suppliers in North America during the 35 years since Honda began building products in the region.

The purchasing milestone came on the heels of record Honda auto production and parts purchasing last year in a region where Honda manufacturing continues on a growth trajectory. In 2013, Honda manufactured a record 1.78 million automobiles in North America as parts purchasing in the region exceeded $25.5 billion for the year, the most ever.

“Over the next three years, Honda will continue to transform our business, advancing technology in products and manufacturing in North America to maximize joy for the customer,” said Chitoshi Yokota, senior executive vice president of Honda North America, Inc. “Together, Honda and our suppliers can support Honda’s goal to become a truly global company by becoming a truly self-reliant regional company here in North America.”

Today, more than 650 domestic OEM suppliers ship parts to 14 major manufacturing facilities in North America, producing a wide range of Honda and Acura automobiles, automobile engines and transmissions, and Honda all-terrain vehicles. Utilizing a separate supply chain, Honda also manufactures power equipment products such as lawn mowers, mini-tillers and general purpose engines in North Carolina. Honda has invested $2.7 billion in recent years to expand auto production capacity and implement new technologies.

In addition to supporting increased production, suppliers are being called on to support Honda’s new responsibilities in the region to increase exports and lead the launch of global products, such as the Civic, that Honda manufactures in markets around the world.

“With significant growth in our production over the next three years, driven by heavy new model activity in North America, we will continue to collaborate with suppliers to deliver leading edge technologies and the highest quality products,” said Tom Lake, vice president of North American Purchasing and Cost Strategy.

Honda Honors 65 Top Suppliers in the U.S., Canada and Mexico

During its annual conference, Honda honored 65 top OEM suppliers for their excellence in one or more of three key categories – Quality, Delivery and Value – based on their outstanding performance in 2013.

This includes five suppliers that excelled in all three categories: American Leakless Company, LLC, Athens, Alabama;CTS Corporation, Elkhart, Ind.; KTH Shelburne Mfg., Shelburne, Ontario, Kumi Canada Corp., Bradford, Ontario, and TS Tech USA Corp, Reynoldsburg, Ohio.

Honda also honored four suppliers that in the past year that overcame extraordinary operational challenges to support Honda production: Asama Coldwater Mfg., Inc., Coldwater, Mich.; Bridgestone Americas Tire Operations, Wilson, N.C. and Wuxi, Jiangsu, China; ITW Shakeproof Automotive Products, Elgin, Ill., and NS International Ltd., Sabina, Ohio.

In addition, Honda presented its Corporate Citizenship Recognition to Rainsville Technology, Inc. of Rainsville, Ala., for demonstrating an exceptional commitment to social responsibility. This recognition is based on leadership in the areas of health and safety, diversity, community involvement, ethics and compliance, and the environment.

Purchasing Impact Where Honda Has Manufacturing Operations

Location No. OEM Suppliers 2013 OEM Parts Purchasing
Ohio 158 $9.7 billion
Alabama 39 $2.2 billion
Indiana 49 $2.5 billion
Georgia 40 $685 million
South Carolina 38 $534 million
North Carolina 45 $496 million

49 Honda Service Parts Suppliers Recognized for Outstanding Performance

In addition to the OEM supplier awards, Honda honored 49 suppliers for outstanding performance in supplying Service Parts that serve the needs of customers after they have purchased Honda and Acura vehicles. American Honda provides service and accessory parts for the nearly 20 million Honda and Acura automobiles in operation in the United States today.

Honda Service Parts suppliers provide customers with top-quality service parts in a timely manner and at competitive prices for the maintenance and repair of Honda and Acura customers’ vehicles. They were rated on their performance in quality, cost and delivery. Distinct from the OEM supplier awards, an overall score is based on the combined performance in all three categories.

The company manages a national network of warehousing and distribution facilities that deliver high-quality, high-value service parts to 1,300 Honda and Acura dealers nationwide, who consistently rank American Honda as managing the best parts operations in the automobile industry.

Honda purchased nearly $1.26 billion in parts from its Service Parts suppliers in North America last year.

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