Honda is well known for its technology development. Each year the company spends 5% of revenue in R&D and invests heavily to maintains state-of-the art facilities and equipment. In addition to reliability and safety, Honda emphasizes on environmental sustainability, which led to popular products like fuel-efficient vehicles and engines. Its CVCC engine is the world's first engine to meet the US clean act requirement, which not only delivered superior economy and performance, but also strengthen Honda’s reputation for technological excellence in the minds of customers. It is this excellence enables Honda to compete successfully not only in the cars market, but also captures big market share of other products such as lawnmowers and motorcycles. As the demand for less pollution is increasing, the strength in the revolutionary engine technology is helping Honda gaining more and more.
Like other Japanese industry, Honda is heavily dependent on foreign suppliers for almost all of its raw materials. However, unlike the other automobile manufacturers, Honda centralized its procurement by its largest subsidiary of Honda Trading Corporation, which dedicates to find "best fit" solutions to business needs. By centralizing purchase, Honda is able to control parts quality and availability, guarantees delivery, minimize the associated costs, and develop "win-win" relationships with its suppliers. In addition, in accordance with its "going green" philosophy, in 2001, Honda established Green Purchasing Guidelines to guide its purchasing activities. As the voice of environment protection is getting higher and higher, the fuel efficient engine design plus the green purchasing is sure to build Honda an image of good corporate citizen.