Honda Staff Seek Early Retirement Amid EV Shift

News: Far East

2021-08-22

Honda Staff Seek Early Retirement Amid EV Shift

Over 2,000 employees at Honda Motor have applied for early retirement, as the Japanese automaker restructures its workforce to gear up to make more electric vehicles.

Honda’s move is the latest in the trend among automakers to move away from the production and sales of internal combustion engines. Those employees account for around 5% of Honda’s full-time staff in Japan. Although Honda had not set a target, the number of applications has far exceeded its initial estimate of 1,000.

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2021-07-27

Sany Challenges Komatsu’s Grip on Indonesian Construction Machinery Market

Akihiro Komuro
Akihiro Komuro

The battle between major Japanese and Chinese construction machinery companies is intensifying in Indonesia. As the growth of the Chinese market slows, China’s Sanichi Heavy Industries is accelerating its overseas expansion in search of new sources of revenue.

Komatsu, which has a stronghold in Southeast Asia, is responding by introducing mid-priced machines and expanding its maintenance bases. Who will dominate the growing market following China will also affect the power structure of the construction equipment market in Asia.

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Sony Joins Komatsu’s DX Alliance

On July 1, Komatsu launched EARTHBRAIN, a new company for the digital transformation (DX) of construction sites. The new company will provide services that will lead to significant cost improvements by digitizing and analyzing data from construction sites.

The parent company of the new company is LandLog, an IoT (Internet of Things) open platform company established by Komatsu in 2017. The investors will be substantially replaced, and some members of Komatsu’s digital unit will be transferred to the new company.

After approval by overseas authorities, Komatsu will provide 54.5%, NTT DoCoMo 35.5%, and Sony Semiconductor Solutions and Nomura Research Institute (NRI) 5% each. The company is well capitalized with more than 15 billion yen. Newly added to the list are Sony and NRI. Sony has an advantage in image sensors. NRI will provide its expertise in developing digitalization solutions.

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2021-06-27

Komatsu and Honda Plan To Jointly Develop Electric Excavator

Komatsu has announced that it plans to develop an electric excavator in cooperation with Honda and bring the product to the market during FY2021. The two companies will also jointly develop electric excavators up to the 1-ton class and will also collaborate on services such as battery replacement for construction equipment.

Source: The Nikkei

PSR Analysis: As mentioned in the April issue of PowerTALK™ News, four Japanese motorcycle manufacturers, Honda, Yamaha, Suzuki and Kawasaki, have agreed to share the same battery specifications for electric motorcycles. The joint development announced this time will benefit from Honda’s knowledge from its extensive battery research. The interchangeable type has the advantage of shortening the waiting time for recharging, which is an advantage for construction equipment. Japan’s small construction equipment is highly regarded worldwide, and Komatsu must be looking to expand overseas. PSR

Akihiro Komuro is Research Analyst, Far East and Southeast Asia, for Power Systems Research

2021-05-24

Komatsu Unveils Concept of Fully Electric Compact Excavator

Akihiro Komuro
Akihiro Komuro

On May 13, Komatsu announced that it had developed a fully electric compact excavator equipped with lithium-ion batteries. This is Komatsu’s first excavator that does not use cylinders or other hydraulic equipment in the drive unit. In addition to emitting no exhaust gas, the new excavator can be operated remotely and can be used in dangerous places.

Komatsu, which celebrated the 100th anniversary of its founding on May 13, announced this concept model as a response to a decarbonized society.

For the time being, the company does not plan to sell it to the general public. This model is connected to the outside world via wireless LAN, and the driver can operate it remotely without boarding the machine. The remote operation makes it suitable for indoor demolition, disaster rescue, and other dangerous work sites.

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New System To Be Established for Rating of Ship Fuel Efficiency

Akihiro Komuro
Akihiro Komuro

A new international system for rating the fuel efficiency of ocean-going vessels will be established under Japanese leadership, it has been announced. A draft amendment to the relevant treaty will be adopted at an international conference in June, and the system is expected to be introduced in 2023.

The fuel efficiency rating system will be applied to large ocean-going vessels such as container ships, oil tankers, and cruise ships. Once a year, ship owners and operators will submit fuel efficiency data to the government where the ship is registered and rate it on a five-point scale (A-E). CO2 emissions are converted from the distance traveled, the weight of the ship, and the amount of fuel consumed and compared. The lowest E, or three consecutive D’s, will require the owner to submit an improvement plan to the government where the ship is registered. They are required to add devices to improve fuel efficiency or reduce the speed at which they sail. If the ship cannot be improved, it will not be allowed to sail.

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Parched Taiwan Prays for Rain as Sun Moon Lake Hit by Drought

Erik Martin
Erik Martin

TAIWAN — Taiwan’s Sun Moon Lake is so low that parts of it have dried and turned to grass. Jetties that normally float are sprawled awkwardly on dry land, and tour boats are crowded at the tail ends of pontoons still in the water.

Usually one of the island’s most famous tourist destinations, the lake has recently become a star of a different kind. Following the worst drought in 56 years, it is now famous for all the wrong reasons. These days, Instagram influencers photograph themselves posing in a dust-colored, dinghy half-buried in a cracked and cratered lakebed…

But away from the quirky headlines, the situation is dire. Other reservoirs across central and southern Taiwan are effectively empty, down to 5% or less.

Taiwan has had drought before, but observers are hoping the severity of this one – which has lasted 18 months and threatens Taiwan’s economic lifeblood of semiconductor production – is enough to prompt real action on climate change.

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2021-04-25

China-led Proton Is Revitalized

Akihiro Komuro
Akihiro Komuro

Sales of Malaysia’s national carmaker Proton are booming, with its market share in the country reaching 27.3 % in February, hot on the heels of another national carmaker, Produa’s 38.8 %. This is not a single month irregularity; for the full year 2020, the rate is 20.5%. For the full year 2020, the share is 20.5%, almost doubling in just two years from a record low of 10.8% in 2018. This is the first time in seven years that the market share has recovered to the 20% level.

The turning point of the turnaround offensive was a capital/business alliance with a Chinese manufacturer: in September 2017, the company accepted a 49.9% stake from Geely Automobile’s parent company and began importing the right-hand drive version of the X70 SUV, which it produces and sells in China, at the end of 2018. As soon as this became a hit, the company switched to domestic assembly in Malaysia at the end of 2019, and introduced an additional small SUV, the X50, in September 2020.

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Hyundai Group Seals Doosan Infracore Deal

Media outlets in Korea are reporting that Hyundai Heavy Industries is to acquire a 34.97% share in Doosan Infracore from Doosan Heavy Industries & Construction for €630 million (Korean Won 850 billion). Doosan Infracore is the heavy construction division of the Seoul-headquartered Doosan Group.

The transaction does not include Doosan Bobcat, which accounted for 57% of Infracore’s 2019 revenues. The deal will mean that Hyundai will own Hyundai Construction Equipment as well as the Doosan Infracore construction equipment business. Regulatory authorities in South Korea and other countries including China must approve the acquisition; plans call for completion of the acquisition by the third quarter of 2021.

Source: International Construction.com

PSR Analysis: This appears to be a strategy by Hyundai Heavy Industries to gain economies of scale by bringing Hyundai Construction Machinery and Doosan Infracore into the fold, and to expand its market share, especially in the Chinese market.

Hyundai Heavy Industries has positioned the construction machinery division as its core business, the third pillar after shipbuilding and plants. Demand for construction machinery is strong in China, India, and Southeast Asia, and the company is hastening its overseas expansion by expanding its scale through acquisitions in the same industry. Chinese companies such as XCMG and Sany are growing rapidly, supported by domestic demand. Hyundai Heavy Industries seems to have decided that deepening its cultivation of the Chinese market through the acquisition of Doosan’s business is essential for its survival.

On the other hand, Doosan Heavy Industries has been in the red for six consecutive fiscal years through 2019, as its mainstay heavy electric machinery division has been underperforming due to the government’s policy of freezing nuclear power plants. While receiving support from government-affiliated financial institutions, the company has been selling off its non-core businesses in order to rebuild its business. So far, the company has sold off businesses including construction companies, real estate, and hydraulic equipment. Once this sale is completed, the company is expected to be able to achieve a certain degree of financial improvement. PSR

Akihiro Komuro is Research Analyst, Far East and Southeast Asia, for Power Systems Research

Japanese OEMs Agree on Battery Specs for Electric Motorcycles

Four Japanese motorcycle manufacturers, Honda, Yamaha, Suzuki and Kawasaki, said they have agreed to share the same battery specifications for electric motorcycles. By sharing the same removable replacement battery, they will increase convenience. The battery charger to be developed in the future will also be standardized.

For small scooters, it is difficult to increase the size of the battery to extend the cruising range due to the small size of the vehicle, and thus the frequency of recharging is high. The detachable battery type will be more convenient, as it can be exchanged for a fully charged battery at the battery exchange station.

Source: The Nikkei

PSR Analysis: In April 2019, the four companies set up a consortium to discuss battery commonality; agreeing to commonality is an achievement. This was the minimum necessary point to reach in order to prevent confusion caused by conflicting specifications, such as whether to use VHS or Beta. In addition, there had never been a case in the past where four companies had worked together to accomplish something, and in this sense, it was probably significant.

Standards have been agreed upon for battery structure, characteristics, protection circuits, communication protocols for charging, and stations that will serve as exchange infrastructure. However, the size, weight, capacity, and shape of the batteries are outside the scope of the cooperative area and will be handled by each company, in other words, a competitive area.

The agreement is related to replaceable batteries (and replacement stations) for first-class mopeds (under 50cc) and second-class motorcycles (under 125cc). As for the electrification of medium and large motorcycles, all four companies will continue to develop technologies and products as before.

In my opinion, it has taken two years to build this consensus, which is far too long. Taiwan’s Gogoro, KIMCO’s Ionex, and others have already released many EV bikes, and recharging stations have become widespread, especially in urban areas, and the bikes are already functioning as a part of our daily lives. As international competition intensifies, there will be more and more cases where the traditional Japanese sense of speed will not be able to cope. PSR

Akihiro Komuro is Research Analyst, Far East and Southeast Asia, for Power Systems Research