Evolution of Service in the Early Days,
to “Also Fix the Customers’ Hearts”
Soon after the company was founded, Honda’s business started to take off as sales of the A-Type auxiliary engine for bicycles and the Dream E-Type and Cub F-Type increased. In the early 1950s, Honda established its own sales system centered on each branch, but it was difficult for stores unfamiliar with engine maintenance to provide adequate service. For this reason, Honda held service workshops for bicycle store owners, in which Honda staff provided descriptions and practical training on service and supported the sales system.
In 1953, Honda entered the power products business. Honda’s service staff visited dealers to understand how customers used Honda products, and provided training in troubleshooting, usage, and maintenance. The knowhow gained through this consistent activity, knowledge of agricultural customers, and feedback from customers greatly contributed to later development.
When Honda entered the automobile business in 1962, it hurried to establish a service system as well as a sales network. Takeo Fujisawa, then senior managing director, believed that “even though Honda was far ahead of Toyota and Nissan, from the customer’s point of view, Honda should be equal to those two automakers in terms of repairs and adjustments,” and began construction of the Honda SF (service factory), a unique service system in 1964. Under this system, sales and service were separated, and dealers could use the SF as their exclusive factory. Customers could receive high-quality service by Honda anywhere in Japan, and dealers could focus on sales.
For Honda, which had launched the Civic in 1972, enhancing the service capabilities of dealers was essential for expanding its automobile business. In 1973, Honda introduced the Honda Service Certification System in response to the fact that mini vehicles became subject to vehicle inspections that year, and to encourage dealers to become more independent in their service.
Furthermore, in 1973, as part of human resource development to achieve a high level of stability in the service system, Honda held its first service contest, bringing together service staff from automobile dealerships throughout the Chiba Prefecture. This was the origin of the “Gikon” (now the Honda World Skills Contest), which continues to this day. Meanwhile, for motorcycles, the “Tottori Prefecture Motorcycle Hondaman Contest” was held in 1978, leading to today’s Honda Dream Staff Skill Contest.
At this time, many motorcycle dealers were shifting to automobile sales, so it was necessary to develop and strengthen the wholesale network to ensure a stable sales system for motorcycles. In 1979, Honda introduced a wing dealership system specializing in Honda and established a system to take leadership in Honda motorcycle sales in the region. In 1983, Honda introduced the select dealership system, which focuses on Honda sales, and promoted the improvement of maintenance capabilities and cleanliness of service factories.
The automobile service backup work by SF was continued by eleven technical centers nationwide in 1987, and continue operations as the current service technical centers (and Honda Cars technical centers). For power products, Honda established the Power Products Sales Technical Center in 1985, which provides finegrained sales support for around 3,000 power products dealers nationwide.
SF was established to ensure that customers receive quality service anywhere in Japan.
Taking Honda Service Overseas
AHASS established Honda’s service network in Indonesia.
Honda exports began in 1950 when it shipped the A-Type to Taiwan in response to a request from the local market.
Honda established American Honda Motor Co. (AH) in 1959, ahead of other Japanese manufacturers. Rather than rely on exports through trading companies, which was considered common practice at the time for overseas expansion, Honda decided to control its own fate. Honda’s reasoning was that its motorcycles and engines required service, and there was the risk that it would not be able to guarantee adequate service through existing channels.
In California, where Honda had entered the U.S. market, problems such as blown cylinder gaskets and piston seizures occurred with Benly CB92s and other models, soon after they were introduced. This is Honda’s first bitter experience overseas, but it was an excellent opportunity to have dealers understand Honda’s corporate attitude. The service staff who headed to the dealerships were instructed, “Repairs for defects caused by Honda are free of charge. Don’t take a cent.” As a result, Honda’s sincere response to motorcycle complaints led to trust in the company.
In 1964, Honda established Asian Honda Motor (ASH) in Bangkok, Thailand, and the following year, a motorcycle production plant, Thai Honda Manufacturing (TH). However, Honda had not established a service system at the local dealerships, and when customers needed repairs, they had to rely on repair shops in town. To ensure professional service, Honda began preparation of service materials and technical training for service staff (technicians) at dealerships prior to the start of sales activities.
In 1971, the company signed a contract with PT Astra Federal Motor as a new partner in Indonesia and began operations. Since it was difficult to establish a service system in parallel with the development of a new sales network, Astra Honda Authorized Service Station (AHASS), a service network established by incorporating existing repair stores as member stores, was created. In addition to the frequent dispatch of service staff from Japan, AHASS had dedicated staff in the local service departments, and at the same time, maintenance capabilities were actively improved through Indonesian-language service manuals and high-quality tools, as well as technical training.
As overseas motorcycle sales increased, the overseas technical guidance that began in the 1960s evolved into group training in Japan in 1966, as technicians competent in maintenance, especially in the developing nations, were needed with the increase of new and old models on the roads. In 1973, the Honda Service Training Course (HSTC) was launched as part of an overseas training program sponsored by the Association for Overseas Technical Scholarship (AOTS). Participants not only learned the latest technologies, but also gained a deep understanding of Honda’s philosophy, which plays an important role in supporting Honda’s activities around the world.
With the automobile business, as sales volume grew in line with market expansion, local service staff faced new problems. Due to differences in the environments, road conditions, driving styles, and maintenance conditions, problems unthought of in Japan occurred in each market. In the early stages of overseas expansion, one of the service department’s important roles was to gather information to address and resolve these market compatibility issues.
In Canada, Civic engines would not start due to the cold weather, which went down to 30 degrees below zero in midwinter, even in urban areas. Since the Civic’s battery at that time was equivalent to that of a k-car, the engine would not start at temperatures as low as 10 degrees below zero. After that, cold weather tests were conducted every winter with Honda R&D staff and the factories, and cold weather performance, such as engine startup, and heater and defroster performance, was dramatically improved.
Corrosion was also a problem. In Canada, rock salt is sprayed on roads to prevent surfaces from freezing in the winter. This caused body corrosion and brake calipers to malfunction. At the time, rock salt spraying was unknown in Japan, so the car bodies were not adequately protected against corrosion. This problem occurred not only in Canada, but also in Scandinavia and the Netherlands. In response, Honda launched the “Rust Project” to solve the issue as quickly as possible. The local service staff conducted salt damage surveys and rust prevention activities, which contributed to solving the problem.
In the 1980s, the problem of increasing claims costs arose. Since quality and claim costs are inextricably linked, the “MAR-C” project was launched aiming to reduce claim costs and establish quality that met customer expectations. The MAR-C project was tasked with accurately grasping the market situation and provide information, taking immediate action in the market, reflecting and improving the new models for the next fiscal year, and taking overall market measures, including service campaigns. These activities were implemented as an all-Honda effort, including local subsidiaries. In June 1982, the activities of the MAR-C project were transferred to the newly organized Quality Division.
Engine startup was an issue in Canada as temperatures could go down to -30 degrees Celsius.
Rust caused by salt used to melt snow in Canada
Seeking Customer Satisfaction in Changing Times
First Global Service Conference held by AH.
From the late 1970s, when the Civic and Accord became available around the world, information began to flow between the regions regarding their service activities that had been developed independently.
Around this time, motorcycle and automobile service managers were invited to Japan to deepen their understanding of, and trust in, Honda. “European Service Seminars” were held, which included factory visits to manufacturing plants and parts suppliers, discussions on quality issues, and descriptions of quality control methods at manufacturing plants. During the meetings with Honda R&D, there were active discussions about the technical requirements of the European models, high-speed driving and corrosion issues, and maintainability compared to other manufacturers.
In addition, the first “Global Service Conference” in 1983, covering Japan, North America, Europe, and Asia and Oceania was held at AH. Among the various service activities reported by the participating countries, AH introduced the concept of J.D. Power and Associates’ Customer Satisfaction Index (CSI) and its initiatives.
In 1992, Honda reorganized its head office into a four-polar global operations system. In response to this change, in 1993, the Overseas Service Division was divided into two: the North American and European Service Department and the Overseas Regional Service Department, which was in charge of other regions. In 2004, the Customer Service Operations, the predecessor of the current Customer First Operations, was established to ensure a high level of service throughout the world.
Organizational Efforts to Enhance Overseas Service Facilities,
Localization, and High-level Equalization
Until 1998, Honda SF and other automobile maintenance experts would travel from Japan to provide service support. However, as local production and sales in China, Asia, and South America expanded from 1999, Honda determined that there were limits to this system, and began to build a new method to efficiently establish local subsidiary service systems and functions in each country.
First, Honda began to define service concepts (including organization, work management, repair techniques, customer service skills, and knowledge level) by utilizing the service know-how of Japanese dealers, and started building a system based on these concepts to provide guidance to Honda staff and dealership staff in each country. Specifically, Honda created operation manuals to standardize the operations of local service departments, created training materials and curricula to develop service staff at dealerships, and created functions and systems including training centers and instructor development.
For motorcycles and power products, Honda’s urgent task in Africa, a new market for the company, was to establish basic knowledge and skills, such as an overview of Honda products and maintenance methods, which it provided through on-the-job training (OJT) on an ongoing basis.
For the Chinese automobile market, the rapid growth in sales volume since around 2005 led to issues such as inadequate service capacity at dealerships, which in turn caused declining customer satisfaction. Honda decided that it needed to provide support, and from 2007 to 2010, it requested the cooperation of experts in Japan who had experience as dealership managers.
As a result, the level of service at dealerships was improved, and Guangqi Honda Automobile Co., Ltd. was ranked first in J.D. Power’s CSI survey in fiscal 2009, a sharp increase from 16th place in the previous year. After the support from Japan ended, local staff in China continued to make dealership support activities more independent, an activity they still continue, and Honda ranked first in J.D. Power's CSI report*1 in both 2021 and 2022. Honda has expanded this approach in China, and since 2008, has been implementing these activities in the Asia Oceania region and some European nations.
Meanwhile, a similar problem occurred in the Indian motorcycle market. When Japanese Honda service staff visited a dealership on a rainy day, they found many motorcycles parked side by side on the road in front, waiting to be serviced. There were more than 60 bikes. Many of the customers were sheltering from the rain under the trees while waiting their turn for service. Reception was slow, and the visiting Japanese member was surrounded by the customers who asked questions such as, “Are you from Honda? What do you think of this situation? If you continue like this, I will be late for work.”
Researching the maintenance facilities in India, Honda found that bikes were washed before repairs, but due to a lack of space and personnel, many bikes would be waiting to be washed, as mechanics waited impatiently. As a temporary measure, Honda moved up the start of daily bike wash operations by 30 minutes, so that mechanics could come to work and immediately begin work.
A customer satisfaction survey of major Indian motorcycle manufacturers conducted by Honda Motorcycle and Scooter India Pvt. Ltd. (HMSI) in 2011 revealed that Honda ranked last among the six companies in the survey. In November of that year, Honda’s Motorcycle Service Division decided that it needed to train local subsidiary staff to improve service activities at dealerships, and with support from the Automobile Service Division, formed a team of five members who traveled to India to begin on-the-job training.
The team members were divided into five locations in India (East, West, South, North, and Central regions) and visited dealerships together with staff from the regional offices to identify problems and share knowhow with the dealership staff, as well as meeting with the dealership owners with the staff to discuss ways to make improvements. The dealership owners promised to make improvements in response to Honda’s sincere proposals, and implemented measures which could make an immediate difference. The staff and expatriates handled issues that required more time, and patiently implemented solutions.
With each visit to a dealership, the local staff were able to make accurate judgments and come up with ideas for improvement on their own. In this way, a system developed in which staff members who received guidance from Japanese expatriates would train other staff members, gradually sharing the ideal image of Honda’s services with all the staff. As a result, Honda’s 6th ranking in the customer satisfaction survey in 2012, improved to 3rd in 2013, 2nd in 2014, and 1st in 2015. Honda had succeeded in establishing a service system that satisfied customers.
In the 2010s, the power products division was expanding its sales channels to South Africa and other Southern African Development Community (SADC) member countries (15 countries at the time). However, the environment at dealerships was poor and mechanics’ knowledge of engines was unsatisfactory, making it difficult to perform correct repairs. In order to help mechanics visually understand the principles of how engines worked, Honda created handmade mechanical charts and non-verbal, pictorial teaching materials. In addition, Honda produced a picture-storyboard that explained why oil and air cleaners need to be changed regularly, which was distributed not only to dealers but also to generator users, developing a steady service awareness campaign in the African market.
- J.D.Power 2021 China Customer Service Index (CSI) Study, J.D.Power 2022
China Customer Service Index (CS) Study
Efforts to improve service activities at dealerships (from left, automobiles, motorcycles and power products)
Handmade mechanical chart produced in Africa to promote understanding of engine principles
Upstream Improvement, Speaking for the Customers
With the globalization of Honda’s business, production and sales were completed in each region, and some R&D functions were transferred to local operations, starting a commercial distribution of products across regions that did not involve Japan. Furthermore, with the expansion of business in emerging countries, it became necessary to expand activities to represent customer opinions to development and production departments (market representation activities), which had been Japan-led, to each region to efficiently feedback market information to the source. Honda began QIC (Quality Information Correspondence), collating warranty repair information to generate market quality data, in each region, and established a system to enable Honda in Japan to verify the status of market representation activities per country and to provide backup.
In 2005, Honda extended its quality system ECHO Ver2 (Efficient Communication System for Harmonized Operation), which manages defect information reporting to solutions, to establish a system that enables centralized management of quality information that had been organized and managed independently in each region. In 2016, Honda launched GiQ (Global intelligence of Quality), a system that enables the sharing of information worldwide. This enabled users to query support data such as what was happening in each country, whether similar problems occurred in other markets now or in the past, and what measures being taken. In addition, Honda began development of FQS (Flexible Quality Information System), a system that collects and provides main market quality data such as production, sales, and warranty information, aiming to centrally manage data.
In addition, as part of its efforts to strengthen its activities to achieve 120% product quality, Honda began its Service Quality (SQ) initiative in 2013, further reinforcing the role of the service department in market quality improvement activities. In addition to warranty repair information, the main information for market quality activities, customer complaints concerning products are also feedback to the source, as important data for decision-making based on future risks, further enhancing quality improvement activities.
For FUN motorcycle models, for which taste and personal preferences are particularly high, Honda considered initiatives to evolve its existing quality improvement activities in order to meet the high expectations of customers, and decided that activities speaking for the market that go into areas such as appearance and texture were necessary in order to further increase user loyalty and good impressions toward Honda products. In 2021, the service department took the lead and commenced new activities involving the product planning, development, and manufacturing departments.
In five European countries which were the major market for FUN models, Honda visited a total of 48 Honda-exclusive and non-exclusive dealers to collect market information, including comparison between Honda and its competitors products and dealers. Based on these surveys, the development and manufacturing departments were consulted to improve development tools, reviewed manufacturing quality standards, and developed preventive measures. In addition, Honda reviewed the criteria for Priority*2 activities, which examine how to respond to defects in exterior quality to ensure that problems could be solved before they became widespread.
These activities, which started with large European premium FUN models, were expanded to small FUN models to improve the image of Honda among young people in Asia, where its brand image had been declining in recent years, and to further strengthen its function as the market’s voice.
For automobiles in recent years, as electric vehicles and sensing functions have evolved, quality issues have become more complex across categories, such as electronic control and radar. In addition, some defects were caused by internal failures while others were external influences, often making it difficult to pinpoint the cause.
To identify the cause of such quality problems in the market, information on the environment at the time the problem occurred, detailed history of usage by the customer, images of the surrounding environment, and the presence of radio waves in the area are becoming indispensable data sources. Meanwhile, as the use of TCUs (Telematics Control Units) in vehicles has expanded with the spread of connected cars, vehicle information can now be broadcast, Honda began to develop a method to analyze quality problems using remotely.
Specifically, in addition to warranty information, this method involves obtaining diagnostic failure data from the HDS (Honda Diagnostic System) used by dealers, and DTC (Diagnostic Trouble Code) data utilizing telematics data from the TCU at an early stage to analyze the cause of the problem.
Along with the evolution of safe driving support functions, vehicle devices are also used to understand vehicle data in the event of a malfunction, as well as external image, voice, and location data. In addition, telematics data is stored in the vehicle to make revisiting the dealership easier. This service became available in the North American market in 2022, and has been expanded since.
In response to the expanding use of new power units and TCUs, such as hybrid and electric vehicles (BEVs) and fuel cells (FC, Fuel Cell vehicles), Honda has also begun developing technology and infrastructure to remotely collect and analyze the status of high-voltage batteries and FCs, including charge status and power generation time. With the customer’s consent, vehicle status and operating history can be collected on Honda’s servers, enabling an environment that can be used not only to respond to quality defects, but also to develop future models.
For high-voltage batteries for EVs, not only are they vital components, but as they directly affect vehicle operation, problems need to be understood as quickly as possible. With the Clarity fuel cell vehicle, collected data is used to monitor the voltage of the high-voltage battery to issue alerts during the degradation process, which is used to determine whether quality improvement activities are necessary, and initiate these activities as a means of making decisions on early updates.
With FCVs, FC operational status data is monitored and analyzed, and is utilized as a decision-making tool for repair and market response. These advanced remote monitoring and diagnostic operations will be continually expanded and enhanced.
- Priority activities are activities in which Honda’s Quality Information Promotion Section of its Technical Service Department determines priority levels for defects and implements measures. (Priority level judgment criteria are based on G-HQS AUTO17030 SQC00 “Regional Priority Judgment Criteria.”)
