Chapter II:
Global Expansion of Business

4: Europe, Africa and the Middle East 4-3: Middle East

4: Europe, Africa and the
Middle East
4-3: Middle East

Life in the Arabian Peninsula is a constant battle with sand. Fine-grained sand penetrates everything, beyond imagination.
And, the biggest troublemaker for cars in the region is this sand.
In addition, the harsh conditions are compounded by temperatures reaching nearly 50°C on some days.
For Honda customers in the Middle East to be able to drive our cars with peace of mind,
it was essential to offer unique after-sales service adapted to the climate and usage environment.
Moreover, the business can only truly contribute to the region if it can provide services by local associates.
The key, therefore, was to train local service associates.
However, in a region where it is difficult to retain human resources,
how could service skills be taught and the quality of Honda after-sales service be maintained?
The development of Honda in the region is a history of pioneering and developing its service system.

Training Service Staff Becomes an Urgent Need
as Exports Expanded

Honda exports began with motorcycles, and after the establishment of American Honda Motor Co. (AH) in 1959 and European Honda Motor (EH) in 1961, Honda exports spread around the world at an accelerated pace, by 1964, reaching over 90 countries in the Middle East, Africa, Asia, and Latin America.
As sales expand, so must after-sales service. In order for Honda products to be used for a long time, sales and service must be integrated. To this end, Honda had begun providing technical guidance by sending Japanese service associates overseas to visit and train dealerships, but as overseas sales increased these visits were not enough, so in 1966, Honda shifted from visits to group training in Japan. This training was attended by local service associates from North America, Europe, the Middle East, Africa, Asia, and Latin America, and focused mainly on training related to new models.
Furthermore, with the increase in the number of models sold, including new and old models, due to the expansion of business scale in each country, the need for specific training and understanding of the basic theory of engines and transmissions, which had become more complex and diversified, had increased, requiring associates who mastered maintenance techniques.
In 1973, the Honda Service Training Course (HSTC) was launched in Japan as part of an overseas training program sponsored by the Association for Overseas Technical Scholarship (AOTS)*1 and focused on human resource development by inviting service associates from various countries to attend.
On the other hand, with automobile exports, when the Civic which launched in 1972, was first exported to the United States and Europe in 1973 (and to the Middle East in 1974), Honda began to consider the service and parts supply systems in each country from a long-term perspective. Many distributors (importers) requested Japanese service associates who were familiar with the maintenance and repair of Honda vehicles. With the limited number of Japanese associates, the training of local service staff became an urgent need.

HSTC 100th commemorative pamphlet HSTC 100th commemorative pamphlet

“Technical training in Japan is based on the idea that Honda service should be the same all over the world – ‘like a hard candy cut from a long roll with each piece in the exact same shape – so that there is no variation in service from region to region.
On the other hand, local technical training is tailored to the skill level and environment of the service associates. In particular, we must train associates in regions where there is no national certification system for auto mechanics to be able to properly perform inspections and maintenance,” said Hisashi Kusumi, Senior General Manager of the Middle East office*2 (HAMER*3) from 2011 to 2017.
Thus, it became essential to both train local associates by inviting them to Japan to learn Honda philosophy and product technology, and to send Japanese associates overseas for instruction and training to learn local routine maintenance and repair methods.

  • Established in 1959 as a private technical cooperation organization under the jurisdiction of the Ministry of Economy, Trade and Industry (former Ministry of International Trade and Industry). Merged with the Japan Overseas Development Corporation (JODC) in 2012, becoming the Association for Overseas Technical Cooperation and Sustainable Partnerships.
  • Renamed to the Africa and Middle East Representative office in 2014
  • HAMER: Honda Africa and the Middle East Representative office

Assigning Honda SF*4 Service Staff to Support Operations
in Saudi Arabia for Significantly Extended Periods of Time

The legal systems of many major Middle Eastern countries do not allow foreign companies to sell their products directly, and in the case of Honda, sales and service are determined by local distributors and their affiliated dealers. Honda activities were limited to providing sales and service support to these companies.
In order to invite to Japan and train local service associates, the first HSTC was held in 1976, inviting three associates from Saudi Arabia and Mauritius. At a time when training facilities were not yet in place, training mainly consisted of practical training at Honda plants and Honda Service Factory (SF), over a one year period. Participants not only learned the latest technology, but also deepened their understanding of Honda philosophy, and came to play a major role in their respective local markets.
On the other hand, stationing Japanese service associates to serve as leaders was immediately implemented in response to local requests. With the cooperation of Honda SF, 200 associates from Honda facilities volunteered in December 1973, with about 20 being selected. These Honda SF associates underwent training for overseas assignment, including improvement of repair techniques for all Honda products, and language training. From the middle of 1974, they left for their assigned countries. One country where the first batch of applicants was stationed, was Saudi Arabia.
The Japanese service associates in Saudi Arabia were to be stationed for two years starting in 1975. With the cooperation of the distributors, they trained local service associates through actual inspection and repair of customer cars.

Japanese associates arrived once per month. Providing local support for them was also an important task. Japanese associates arrived once per month. Providing local support for them was also an important task.

The legal systems of many major Middle Eastern countries do not allow foreign companies to sell their products directly, and in the case of Honda, sales and service are determined by local distributors and their affiliated dealers. Honda activities were limited to providing sales and service support to these companies.
In order to invite to Japan and train local service associates, the first HSTC was held in 1976, inviting three associates from Saudi Arabia and Mauritius. At a time when training facilities were not yet in place, training mainly consisted of practical training at Honda plants and Honda Service Factory (SF), over a one year period. Participants not only learned the latest technology, but also deepened their understanding of Honda philosophy, and came to play a major role in their respective local markets.
On the other hand, stationing Japanese service associates to serve as leaders was immediately implemented in response to local requests. With the cooperation of Honda SF, 200 associates from Honda facilities volunteered in December 1973, with about 20 being selected. These Honda SF associates underwent training for overseas assignment, including improvement of repair techniques for all Honda products, and language training. From the middle of 1974, they left for their assigned countries. One country where the first batch of applicants was stationed, was Saudi Arabia.
The Japanese service associates in Saudi Arabia were to be stationed for two years starting in 1975. With the cooperation of the distributors, they trained local service associates through actual inspection and repair of customer cars.

However, Saudi Arabia is an oil-producing country whose economy was enriched by oil money, had few domestic workers at the time, and in particular, most mechanics were foreign workers, who would soon return home. It was therefore difficult to acquire skills, and due to strong requests from distributors, the expatriation policy continued until the mid-1980s. The success of Japanese service associates in Saudi Arabia not only brought peace of mind to many customers, it also attracted a great deal of interest in the surrounding Gulf countries. This led to the stationing of Japanese service associates in the United Arab Emirates (UAE), Kuwait, and other countries, which greatly contributed to enhancing trust in the Honda brand in these regions.

  • Founded in 1964 based on the “Service Factory concept” of separating sales and service to increase the efficiency of both. Absorbed in 1984.
Honda R&D survey of desert area about 100 km from Tripoli (Libya). Lunch taken under a tree due to the lack of restaurants

Honda R&D survey of desert area about 100 km
from Tripoli (Libya). Lunch taken under a tree due to the lack of restaurants

For safety reasons, prevention of problems in the desert was a vital issue.

For safety reasons, prevention of problems in the desert was a vital issue.

Ramping Up Local Business Activities with the Launch of
Accord, Making Region-Specific Challenges More Clear

Honda Middle East activities began in earnest when the Accord was launched in 1978. However, due to the Middle East’s extreme heat and limited knowledge of dust and sand, a variety of quality problems arose.
The Arabian Peninsula, with major Middle Eastern markets including Saudi Arabia, the UAE, and Kuwait, is mostly desert, with temperatures reaching nearly 50°C in the summer. Humidity is high along the coasts, and temperatures inland vary widely from day to day, exposing vehicles to a harsh environment. Sand and dust particles in particular are fine, and penetrate unpredictable components, causing unexpected problems.
By reducing the spacing of air conditioner condenser fins to accommodate higher temperatures, dust tends to accumulate between the fins, increasing refrigerant pressure and load, thereby damaging the compressor. Similarly, radiator fins became clogged, resulting in reduced engine cooling performance. In order to accumulate know-how on the optimal fin spacing and fin shape for this climate, service associates repeated tests and gathered information even on days when the temperature was close to 50°C, or during sandstorms that obscured the sun. They also recommended their customers to wash the condenser with water once a week.
In addition, the temperature of gasoline in the fuel tank would rise to nearly 80°C, causing thermal expansion in the fuel pump rotor, preventing the motor from working, making it impossible to restart the engine. An engine stoppage in the desert could be life-threatening. In addition, fine sand would somehow enter the vehicle, accumulate on the power window switches, causing poor contact, or pass through the air filter and enter the engine, increasing oil consumption. As a preventative measure, Honda often conducted a service check-up campaign through its authorized dealers. While inspecting and servicing each customer’s car, Honda collected data on problems unique to Middle Eastern usage and the natural environment.
These fact-finding activities were the basis for creating Middle Eastern specifications for Honda cars subsequently marketed in the region. These activities were further carried on to improve specifications even more suited to the region.

Fine dust particles enter the engine compartment causing a large variety of issues

Fine dust particles enter the engine compartment causing a large variety of issues

Kusumi said: “When I was stationed there in the 2010s, especially in Saudi Arabia, there were problems caused by temperature and sand as well as usage beyond our expectations.”
In Saudi Arabia, a country with a vast area and well-developed highway network, drivers traveling 1,000 km at speeds of 160 to 180 km/h was not uncommon. This is a harsh environment for vehicles, with long hours of high-speed driving under the hot sun at 45°C to 50°C.
Kusumi said: ”There were cases of engine mount damage, juddering under braking, and boiling battery fluid. At the time, Middle East-specification vehicles were mainly based on U.S. specifications, which had already been tested in Death Valley (a part of the California desert known as one of the hottest places in the world) for high temperatures, but the Middle East was even harsher than that.”
Various tests were conducted for this kind of usage. Researchers from the Tochigi R&D Center (HGT) were dispatched to investigate with local service associates. This went on for a decade, bringing back to Japan a great deal of data and knowledge. (Currently, HGT provides remote support.)

Service Staff Were Challenged by a Harsh
Climate and Automobile Usage Conditions

Frequent occurrence of sandstorms in certain seasons
  •  Air filters are clogged with sand, causing engine issues.
  •  Dust accumulation destroys the radiator.
  •  Sand accumulates in the car horn, causing sound issues.
Torrential rain flooded and shut down a Honda office

The Gulf Coast region has almost no rain throughout the year, but when it does, it is severe. In 2011, torrential downpour flooded HAMER’s facility, causing computer server damage and a weeklong work stoppage.