[Tenant Company Interview (Gran Green Osaka)] Honda Motor Co., Ltd.

With the development of technology, the automobile industry is undergoing a once-in-a-century transformation. Accordingly, Honda Motor Co., Ltd. (hereinafter referred to as Honda), founded in 1948, is touting this as its second founding period and is carrying out many reforms. One of these is "software-defined." Until now, the development process was to define the hardware first and then decide on the software, but from now on, the approach will be to define the software first and then decide on the hardware. Honda will open a new software development base at Gran Green Osaka in the spring of 2025. What kind of initiatives will Honda undertake in Osaka in the future? We spoke to three members of the Software-Defined Mobility Development Division.

Founded: 1948

Number of employees: 32,443 (non-consolidated) / 194,993 (consolidated) (as of March 31, 2024)

Head office location: 2-1-1 Minamiaoyama, Minato-ku, Tokyo

Business description: Starting with the motorcycle business, the company has created a variety of mobility solutions, including automobiles, power products, and aircraft. It is also challenging itself to expand joy through the development of new mobility solutions and open innovation.

Suzuki has been with the company for over 30 years and has been involved in the development of F1 and Indy cars for many years as an engineer. He said, "I will aim for high-level development capabilities, with a focus on software engineers, in Osaka."

-Firstof all, what is "software-defined"?

Suzuki: Until now, car manufacturing has focused on hardware such as engines and brakes. Of course, software also plays an important role, but the development process was completed once the software was incorporated into the hardware known as the car. However, from now on, software will take center stage. By continually updating the software installed in cars, the car's performance and functions will always be up to date. In other words, the idea is that software, which determines the car's performance, will become the center of development.

-Whyare you establishing a new software development center in Osaka?

Suzuki：Up until now, Honda's R&D department has been centered in the Kanto region, including Saitama, Tochigi, and Tokyo. However, we felt that we would need to look across Japan to secure talented personnel in the future, so we decided to first set up a base in Osaka, Japan's second largest city, with the aim of recruiting talented personnel.

-TheSoftware-Defined Mobility Development Division (SDM) has people transferred from other departments and people hired as veterans from a variety of fields.

Mr. Iwane：That's right. I was hired from another field and had experience developing EPS software for automobiles, but most recently I was mainly involved in developing medical device software. Even while working at my previous job, I felt firsthand that the importance of software would increase in every field in the future. Among those factors, what made me decide to change jobs to Honda was that, in addition to the company's "software-defined" philosophy, the fact that I would be working in Osaka, as I have lived in the Kansai region since my 20s, was a big factor.

"We will take on the challenge of making the new office a communications hub that takes advantage of the distinctive features of the Kansai region, and become a cross-sectional base that can only be found in Osaka," said Iwane.

Mr. Mikumo：I joined the company as a new graduate and was previously in the market quality management department. My job was to collect information such as reports of product defects in Japan, promote countermeasures, and work to prevent recurrence. As I specialized in software-related research during my university days, I had been working to improve products from a customer-oriented perspective, but I applied to be transferred to this department because I want to satisfy customers through software development in the future.

Mikumo is working on developing AI technology that can provide value tailored to the personalities and lifestyles of electric vehicle customers.

-What do you feel is unique about Honda at your workplace?

Mr. Iwane: Honda thinks about things not in terms of individual parts, but in terms of individual cars, which I think sets them apart from suppliers. Also, if there is any uncertainty about a decision in a meeting, they go back to the original purpose or starting point and continue the discussion. And to ensure that these discussions can be carried out in an open manner, the organization is not only divided vertically but also horizontally, with specialized teams being formed, and people gather together and discuss things enthusiastically regardless of age or length of service. I felt that this truly embodies the Waigaya culture that is Honda's corporate culture.

-What kind of skills and personality are you looking for in the people working with you at the new base?

Suzuki: At our Osaka base, we mainly develop software. When we say software, we are looking for engineers in a wide range of fields, including embedded control software, cloud software for updating applications, and data analysis such as AI. In terms of the type of person we are looking for, we welcome people who have the desire to do things on their own, who can raise problems and take action to solve them, and who are enthusiastic to try new things. In Honda's corporate culture, there are many cases where a proposal made by an employee has been followed up and actually commercialized.

Mr. MikumoWe hope that those who join us through our career recruitment will use the knowledge they have acquired to propose ideas and ways of thinking that would not come up with for people like us at Honda, and that we will be inspired by them.

Mr. Iwane：From the perspective of doing something new, the automotive industry is currently at a once-in-a-century turning point. Looking at it the other way around, it also means that now is our only chance to change. I hope to work with people who are not resistant to change.

-Honda started out with the motorcycle business and has since created new value through a variety of mobility solutions. What are your thoughts and expectations about Gran Green Osaka, which aims to "combine greenery and innovation"?

Mr. Mikumo: I'm looking forward to meeting and discussing with people from various backgrounds and different values, including companies and university research institutes rooted in Osaka. I think that the mixture of diverse values will surely lead to new ideas. Also, since I've been working in the development department in Tochigi until now, it's hard to get used to the feeling that as soon as I step outside of my workplace, I can immediately interact with people from outside the company (laughs). The development department in Tochigi is spread across a large site with many people, so that wasn't something I did very often.

Suzuki: That's right. The thing that surprised me most about coming to Osaka is how often strangers talk to me. When I'm waiting at the bus stop, the person sitting next to me will casually talk to me, and I feel that it's a region with lively communication. Furthermore, Gran Green Osaka is located on the north side of JR Osaka Station, which is also known as "Kansai's last prime location," and has good access to the Keihanshin area, including Kobe and Kyoto. I hope that the high level of communication that is unique to Kansai and the characteristics of the city will create a good chemical reaction between us and Honda.

-You have decided to move into the Park Tower of Gran Green Osaka. What kind of space will your new office be?

Suzuki: When we conceived the new office, we formulated a vision that "everyone will continue to create new value that is not bound by the past with pride and become a group with an overwhelming presence." The workplace concept is "Let's do it! Let's try it!" This slogan was created in the Osaka dialect of Umeda, where the new base is located, the Enshu dialect of Hamamatsu, where Honda was founded, and Tokyo, where the headquarters is located, and the local dialects that are related to Honda. The office is designed to be seamlessly connected, with a view of the entire floor based on the concept of "see, show, and attract," rather than working in a closed environment. We will provide a place where small groups can quickly execute and improve, such as "agile," which was born as a method of software development. We also plan to create a place where people can work together so that technology, things, and events can be connected with other companies and people in the region.

-Please tell us about the growth and future prospects you envision for Gran Green Osaka.

Suzuki: Honda is currently in the midst of its second founding period, and I think the rapid change and development it has undergone since opening its software base in Umeda is very similar to the atmosphere at the time of its founding, when Honda Soichiro grew the company from a small factory in Hamamatsu into a global automobile manufacturer.
Honda has been aiming to be the best in the world since the company was founded. Because you can only become the best in Japan by aiming to be the best in the world. Honda celebrated its 75th anniversary last year, and in addition to motorcycles, automobiles, and power products, we are also challenging ourselves to create new value, such as air travel with eVTOL, in order to further expand the possibilities of mobility. The spirit of challenge is the origin of Honda. We are aiming for a "software-defined world" from here at Gran Green Osaka.