Honda / JCI Relationship Summary
Global Relationship Summary
96-00 00 - 03 03 - now 96-00 00 - 03 03 - now 96-00 00 - 03 03 - now
Japan
Asia Pacific ------ ------ ------ ------ ------ ------ ------ ------
North America
Europe ------ ------ ------
Overall
Purchasing Engineering Plant
X X
X XX
X
X
XX
Honda / JCI Quality Summary
Quality Index
268
88 10756 74
157106
2997
050
100150200250300
Apr-04 May-04 Jun-04 Jul-04 Aug-04 Sep-04 Oct-04 Nov-04 Dec-04 Jan-05 Feb-05 Mar-05
Plant 2
Target P2 = 109
Units to Repair
40
1723
12 12 1118
9 5
01020304050
Apr-04 May-04 Jun-04 Jul-04 Aug-04 Sep-04 Oct-04 Nov-04 Dec-04 Jan-05 Feb-05 Mar-05
Plant 2
Target P2 = 24
FY 2004Index Point Trend Chart
Honda CBU Seating
333
227
125
454
230 232 217
413
118
292 307
179146
128
211
307
127 12297
68
-
100
200
300
400
500
FY'03 SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG FY'04AVE
FY'04Goal
`
FY 2004RPPM Trend Chart
Honda CBU Seating
8023
224
200
145
6445 51
34 3044
1680
50
100
150
200
250
FY'03 SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG FY'04AVE
FY'04Goal
Supplier Award 2004 received for an outstanding contribution to
HUM in QUALITY
HUM QIS Analysis
0
2
4
6
8
10
12
14
16
Nov-02
Dec-02
Jan-03
Feb-03
Mar-03
Apr-03
May-03
Jun-03
Jul-03
Aug-03
Sep-03
Oct-03
Nov-03
Dec-03
Jan-04
Feb-04
Mar-04
Apr-04
May-04
Jun-04
Jul-04
Aug-04
Sep-04
Oct-04
Nov-04
Dec-04
Jan-05
Feb-05
Mar-05
QIS
Sco
re
79-81ki trend
’05 Laun
ch
HUM
HCM
0. 00
2. 00
4. 00
6. 00
8. 00
10. 00
12. 00
M on t hs in S er vice
2003 0. 29 0. 93 2. 60 4. 40 6. 29 7. 85 8. 85 9. 36 9. 63 9. 68
2004 0. 22 0. 48 1. 10 1. 55 1. 77 1. 80
2005 0. 00 0. 00 0. 00
MI S-1 MI S-3 MI S-6 MI S-9 MI S-12 MI S-15 MI S-18 MI S-21 MI S-24 MI S-27 MI S-30 MI S-33 MI S-36
Warranty Trend Seat Device‘03
‘04‘05
Warranty
December ’04 Overall Comments: ‘Best performance by all measurables! Keep up the good work.’…HCM Quality
Honda / JCI Purchasing Summary
Global Purchasing Summary
XX
Sea
ts
Ove
rhea
d
Doo
rs
Flo
ors
Ele
ctro
nics
# of Quotes
# of Aw ards Products Aw arded
05 Fit 1 1 005 Odyssey 1 3 3 7 3 OHC, HL, Compass
05.5 Ridgeline 1 3 1 1 3 9 3 OHC, HL, Floor Console
06 Civic 1 3 1 3 8 1 Floor Console
06.5 RDX 1 3 4 8 3 OHC, HL, HFL
07 CR-V 1 3 2 6 2 Sunvisor, OHC
07 MD-X 1 3 1 4 9 3 OHC, HL, HFL
# of Quotes 6 19 1 3 19 48 15
# of Awards 0 6 0 2 7 31% Aw ard Rate, but
0 Seat business
80ki 81ki
NA 10.0M 11.7M
UK 4.6M 4.0M
Total 14.6M 15.7M
Honda / JCI Engineering Summary
Mfg Engineering Design Change Overall MY Program Support Location Responsibility Prototypes Drawings Management Testing Development
05 RL Hands-Free-Link Jpn HGT JCI
05 Pilot / MD-X Trim Optimization NA HRA-O JCI
05.5 Ridgeline Center Console NA HRA-O JCI
05.5 Ridgeline Overhead Console NA HRA-O JCI
06 EU Hands-Free-Link Jpn, EU HGT JCI
06 Civic Center Console Global HGT JCI
07 MD-X (DJ) 3rd Row Seat NA HRA-O JCI / Tachi-S
07 MD-X Hands-Free-Link NA HRA-O JCI
08 Accord Seat Device Global HGT JCI ---------------------- Under Development ----------------------
---------------------- Under Development ----------------------
---------------------- Under Development ----------------------
Comments
First telematics development w ith HGT.
JCI recommended changes to gakushin specif ication and material placement for improved quality.
JCI f irst center console for Honda, including several late design changes to the program.
Common design w ith '03 Accord
Adding 5 EU languages to system.
First Global program aw ard.
JCI aw arded design responsibility for 3rd row from Tachi-S/Honda utilizing CPP technology.
Adding PBA, enhanced VR to system.
Participating in design competition utilizing JCI CPP technology.
Global Engineering Summary
Honda / JCI Business Summary
96 - 99 Models 00 - 05 Models 06 - 09 ModelsPrior Models Current Models New Models
MY Seat
Seat
Dev
ice
Sunv
isor
Ove
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Com
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Han
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Link
Sales MY Seat
Seat
Dev
ice
Sunv
isor
Ove
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oor c
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Hea
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Sales MY Seat
Seat
Dev
ice
Sunv
isor
Ove
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oor c
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Hea
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Com
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Han
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Link
Accord 98 - O O O - - O - O - - $ 47M 03 - O O O - - - - O - - $ 47M 08 - T T T - T - - T - TOdyssey 99 O O O O - - - - O - - $144M 05 - - - O - - - - O O - $ 6M 11 - - - - - - - - - - -Civic 96 - - O - - - O - - - - $ 3M 01 - - - - - - - - - - - 0 06 T* - - - T* - - - - - -CR-V 99 O - - - - - - - - - - $ 14M 02 O - O O - - O - - - - $125M 07 - - T T - - - - - - - ($120M)Fit / Stream / Jazz - - - - - - - - - - - 0 02 - - - - - - - - - - - 0 08 - - - - - - - - - - -Legend / RL 99 - - O - - - - - O - - $ 2M 04 - - - O - - - - O - O $ 4M 10 - - - - - - - - - - -EU Accord / TSX - - - - - - - - - - - 0 04 - - - O - - - - O - O $ 7M 09 - - - - - - - - - - -New Acura RDX - - - - - - - - - - - 0 - - - - - - - - - - - - 0 06.5 - - - O - - - - O - OMD-X - - - - - - - - - - - 0 01 O O O O - - - - O O O $188M 07 - - - O - - - - O - O (185M)Pilot - - - - - - - - - - - 0 03 O O O O - - - - O - - $345M 08.5 T T T T T T T T T T TRidgeline - - - - - - - - - - - 0 05.5 - - - O O - - - O - - $ 5M 11 - - - - - - - - - - -Element - - - - - - - - - - - 0 03 - - O - - - - - - - - $ 2M 09 - - - - - - - - - - -TL 99 - O O O - - - - O - - $ 23M 04 - - - O - - - - O - O $ 15M 99 - - - - - - - - - - -CL 98.5 - O O O - - - - O - - $ 11M - - - - - - - - - - - - 0 - - - - - - - - - - - -
$244M $744M ($305M)JCI Europe BusinessLost Business from Previous modelTargeted Programs
O
HG
T D
evel
oped
Current % MixSeating 72%
Seat Device 8%Sunvisor 5%
Headliners 1%Overhead Console 3%Instrument Panel 0
Door Panels 0Floor Console 5%Electronics 6%
Reduction in BusinessFlat / No BusinessGrowing Business
Product Direction
Current % MixNorth America 81%
Europe 17%Japan 2%
Thailand 0%Brazil 0%
Malaysia 0%China 0%Taiwan 0%India 0%
Reduction in BusinessFlat / No BusinessGrowing Business
Region Direction
Business Summary
• With current sourcing direction, JCI sales with Honda will have gone from:
’98/’99: $244M
’04/’05: $800M
’06/’07: $150M
• With the current sourcing direction, JCI direct seating business is gone after ’07 model year.
22% yr/yr increase in business
52% yr/yr reduction in business
Honda / JCI Seating Business Analysis
TST Tachi-S JCI JCI-JV TST Tachi-S JCI JCI-JV
68% 32% Japan 65% 35%45% 32% 23% NA 53% 47%
100% China 95% 5%100% Thailand 100%100% Taiwan 100%100% Phillipines 100%100% India 100%100% Indonesia 100%100% Pakistan 100%
100% Malaysia 100%100% Turkey 100%40% 60% UK 60% 40%
100% Brazil 100%100% Mexico 100%
Global Volume Assumption: 3.2M vehicles Global Volume Assumption: 3.7M vehicles
2003 2007 Global Seating Marketshare Maker Layout Decisions
Program M/L
04 Acura TL Setex04 Edic Tachi-S05 Jpn Odyssey TSTech05 US Odyssey TSTech05 Legend / RL TSTech05.5 RidgeRunner TSTech06 Civic TSTech06 Step Wagon Tachi-S06.5 New Acura CUV TSTech07 Jpn / NA CR-V TSTech07 Acura MD-X Setex
07 UK / China CR-V ------08 Accord WB ------08 Accord NB ------
'03 '07TSTech 61% 66%
$1300M $1450M
Tachi-S 14% 13%380M $400M
JCI JV 8% 19%$360M $1100M
JCI Direct 17% 0%$730M $0M
Honda Global Marketshare (by volume)
JCI Seating Summary
• Significant investment in Seating has been made by JCI to-date. Further investment in Japan engineering including GE (’05).
• However, with the current direction, direct seating business is gone after ’07.
• UK sustainability is difficult based on investment versus volume mix for 2 suppliers. JCI infrastructure for EU market is strong.
• Based on an increasing volume plan, China opportunities still exist for a 2nd seating supplier.
• Japan opportunities?
• 3rd Power Track supplier added (Tachi-S, FKK) reducing JCI business further.
• Joint effort moving forward…
Total JCI Investment $ spent (in $M)
Launch 3 3 4 6 6 8 7 37Capital 4 9 2 7 3 17 1 43
Engineering 6 8 13 16 14 12 16 85Yr 99 00 01 02 03 04 05 165
Seating Investment: $115M in Honda