Honda Malaysia Achieves Historical Milestone Of 1 Million Production Units:

Melaka, 30 March 2022 Honda Malaysia (or the Company) today made history with the achievement of 1 million production units since the Company started local assembly in 2003 in its manufacturing plant in Pegoh, Melaka. The Company celebrated the significant milestone with a ceremony marking the rollout of the 1 millionth vehicle - the All-New Civic.

Honda Malaysia Managing Director and Chief Executive Officer, Ms. Madoka Chujo said, It has been 20 years since Honda Malaysias establishment in the country. We have evolved and recorded significant achievements since then. In March 2021, we achieved the 1 millionth sale unit milestone with all Malaysians. Just one year later, I am now celebrating another significant milestone with all of you the 1 millionth production unit; which is the All-New Civic. I would like to express my deepest appreciation to all Honda associates and suppliers for their effort and hard work to ensure smooth production process and supply chain operations even with many challenges faced, including the COVID-19 pandemic, global chip shortage and recent flood incidents. With their dedication, Challenging Spirit and working Together As One, we are able to achieve this remarkable 1 million production unit milestone.

Ms. Chujo added, Additionally, I would like to extend my heartfelt gratitude to our dealers, members of the media and Honda customers for your unwavering support towards Honda Malaysia. We would also like to thank the Malaysian Government for the strong support since the establishment of Honda Malaysia. On top of that, we would like to express our sincere gratitude to the Melaka State Government for their continued support for our plans for this Pegoh Plant. The tremendous support from all stakeholders have helped Honda Malaysia progress and enabled us to achieve the No.1 position in Non-National Passenger Vehicle segment for eight consecutive years since 2014.

Honda Malaysia opened its No.1 Line at the Pegoh Plant in January 2003. It was built on an area of 46,543.00 square meters, with a production capacity of 50,000 cars annually. The first Honda model that rolled out from the No.1 Line was the 2^nd Generation CR-V.

In October 2013, Honda Malaysia rolled out the Jazz Hybrid model in the No.2 Line which sits on a 49,190.50 square-meter land. The No.2 Line had its official opening ceremony in January 2014 and the expansion further increased the total production capacity of the Pegoh Plant to 100,000 units per year, enabling the Company to locally assemble seven models to cater to the growing customer needs. The seven models are the City, All-New City Hatchback, All-New Civic, Accord, BR-V, HR-V and CR-V. To top it off, the manufacturing plant can produce multiple models at the same time with its flexible production capability.

In striving to produce high quality Honda cars for the Malaysian market, Honda Malaysia has invested in a range of state-of-the-art manufacturing technologies in the Pegoh Plant that are

on par with the Honda plants in Japan. One of the approaches undertaken by Honda Malaysia is the application of advanced manufacturing in the plant such as the Laser Brazing technology that creates a smooth and clean roofline for a sleeker exterior appearance. On top of that, the Inner Frame Welding technology is used to enhance the cars body rigidity while the Spray Polyurethane Foam reduces noise and vibration for Honda models.

In addition to using advanced manufacturing technology to build cars, Honda Malaysia will continue to expand the application of e:HEV technology, VTEC Turbocharged, Honda SENSING and Honda CONNECT to its model line-up to exceed customer expectation as well as further enhance mobility and create a better future, realising the Joy of Creating. This is a commitment that all Honda associates have pledged to uphold, and such perseverance has spurred the Company to achieve the 1 million production unit milestone, making Malaysia one of the key markets for Honda.

Mr. Seiji Kuraishi, Director, Executive Vice President and Representative Executive Officer of Honda Motor Co., Ltd. said, With the strong support of all stakeholders, Honda has produced more than 124 million automobile units globally. More than just production units, Honda strives to continuously improve our product offering with the introduction of the latest technologies. As a mobility company, we continuously work to address challenges especially in the areas of environment and safety. We have set our 2050 Global direction towards achieving a carbon-free and collision-free mobile society. This goal drives us in our initiatives to pursue zero environmental impact and zero collision as we help people expand their own potential in daily lives.

Honda Malaysia emphasises that the Company is committed to providing excellent product offerings to all Malaysians and raising the bar of customer service standard, as well as bringing more excitement to the market.

For this assignment, every individual is required to refer to the attached article and answer following questions.

Course outcome :

CO 1 : Describe the concept of ethics and related theories involved in the scope of business ethical and managerial perspective.

According to the attached article,

3) Based on PESTLE analysis, suggest and discuss any TWO (2) PESTLE forces that are affecting Honda sales in Malaysia.

4) Recently, Honda City and Honda HRV have made a hit for the company whereas the waiting time for the models will be from three to nine months. In your opinion, is Honda Malaysia is doing the right strategy planning for introducing the new model development.