At Honda’s helm these days is Takanobu Ito, named president and CEO in 2009. Ito, who joined Honda in 1978 in research and development, served as chief of automobile operations before becoming CEO. Ito assumed the reins at Honda during historically unprecedented times for automakers. A global recession and widespread unemployment, coupled with volatile gas prices, diminished consumers’ appetite for big-ticket items like cars, particularly big gas-guzzlers. In addition, recently the yen has been strong against the dollar, making it costly to import from Japan. But Ito, described by former Honda CEO Takeo Fukui as “tough,” has never shied away from a challenge. Earlier, he led the team that developed the first-ever all-aluminum uniframe body, used in the Honda NSX sports car. He later directed the design of Acura’s first SUV, the MDX. Besides being president and CEO, Ito heads Honda Research & Development—the first individual since 1992 to simultaneously lead both businesses. Wearing two hats, Ito says, streamlines decision making at a time when speed is essential to survival. Ito’s plans call for intensifying Honda’s already strong emphasis on R&D. As he does so, the company will benefit further from what industry observers call its key strategic advantage: the flexible assembly lines it built more than 10 years ago. Widely regarded as the nimblest player in the industry, when gas prices soared, Honda was able to slow production of its pickup truck and step up the assembly of smaller, more fuel-efficient models. It also relocated the assembly of some models to other plants, gaining even greater efficiencies.

• While they may have different parts, all Honda vehicle models are assembled using the same process. How can Honda president and CEO Takanobu Ito use this fact to the company’s advantage as he strives to keep it profitable? 

• Industry observers say Honda has never “followed the crowd” or patterned itself after its competitors. Instead, it has pursued its own path. What changes do you think Ito will make during his tenure? Why?