Supporting Dealerships with Environmental Initiatives and Reducing Operational Burden

Honda Trading provides consulting services for waste management under the name "Environmental Service Package," offering services to Honda automobile dealerships nationwide and some motorcycle dealerships. We spoke with the Equipment & Environment division and our customer about the current initiatives and their benefit.  
*Information as of March 2025.*

Special thanks for the interview and photography: Honda Cars Chuo Saga

Reducing Dealership Workload with the Environmental Service Package

ーCould you tell us about the Environmental Service Package?

Arafune: The Environmental Service Package is a service we provide primarily to Honda Cars dealerships across Japan, focusing on three main areas: 
1. Waste Management Services: This involves handling the proper disposal of waste generated during vehicle maintenance at dealerships. Specifically, we manage tasks such as coordinating and negotiating with industrial waste contractors, handling contract procedures, conducting regular on-site audits, and even implementing and inputting electronic manifests (*).  

(*) *Manifest*: A document used for industrial waste management, ensuring accurate information transmission and proper disposal. It is issued by the waste generator when outsourcing waste processing.  

2.Recycling Services: This includes recycling used automotive parts, such as lead batteries and bumpers, collected from trade-in vehicles and repaired parts at Honda Cars dealerships. These materials are not only disposed of properly but are also recycled into raw materials for new products. 

3. Linen Services: This involves managing the uniforms worn by service technicians, including procurement and daily cleaning services.  

The Environmental Service Package is built on these three pillars, allowing us to take on ancillary tasks for dealerships. By doing so, we provide added value through economies of scale and improved efficiency.  

ーWhat was the background and purpose of launching the Waste Management Service?

Arafune: For Honda Cars dealerships, there were challenges such as a lack of information about environmental regulations and the difficulty of managing waste while focusing on their core operations. Keeping up with increasingly stringent waste disposal regulations and implementing them at each dealership requires significant effort. 

Our service was born out of the need to raise awareness of relevant laws and regulations and to support dealerships by managing these tasks on their behalf. The primary benefit for Honda Cars dealerships in adopting our waste management service is the ability to save time and effort, allowing them to focus on their core business operations.  

ーCould you also explain the Recycling and Linen Services?

Arafune: For example, with lead batteries, we purchase used batteries from Honda Cars dealerships, process them through our partner companies, and recycle them into lead, which is then supplied to battery manufacturers. This domestic recycling model, which we launched in 2015, has achieved a collection rate of approximately 70%. 

The Linen Service involves managing the uniforms worn by service technicians, from procurement to daily cleaning. We also propose uniforms made from high-performance, recycled materials with excellent breathability and quick-drying properties, which have been well-received as a measure to improve employee satisfaction. (*)
By centralizing these services, we can provide economies of scale compared to individual dealership arrangements.  

(*) Please consult with us regarding the implementation timing.

Providing Tailored Services Nationwide Across Eight Regions

ーWhat are the strengths of the Environmental Service Package?

Arafune: I believe our strengths lie in two key areas: 

1. Network with Partner Companies: For example, we work with around 380 waste contractors nationwide, from Hokkaido to Okinawa, allowing us to propose the most suitable contractors for each customer. Additionally, we handle the mandatory on-site audits of waste contractors required by law on behalf of our customers. 

2. Regional Representative System: We divide the country into eight regions, with dedicated representatives assigned to each area. This enables us to gather region-specific information and provide tailored support to our customers. By maintaining strong communication with local customers, we've even had cases where existing dealership clients introduced us to other stores which is grateful for us. 

Feedback from Dealerships Using the Environmental Service Package

We spoke with the service department manager at Honda Cars Chuo Saga, a dealership that has been utilizing the Environmental Service Package.

ーHow did you handle environmental compliance before utilizing Honda Trading's service?

HC: Previously, we often felt uncertain about whether our efforts were sufficient. We tried to stay informed about environmental regulations through the Automobile Maintenance Promotion Association and by sharing information with other dealerships. However, even when we knew what needed to be done, we often weren't sure how to implement it effectively. 

ーHow has your experience been since using Honda Trading's service?

HC: We started working with Honda Trading about six years ago, and the biggest benefit has been the peace of mind. Whenever we have questions or issues, Honda Trading provides guidance and helps us address them. 

For example, Honda Trading handles the initial contracts with waste contractors, and additionally coordinate schedules to ensure smooth even daily waste collection. When opening a new store in a different location, they recommend suitable contractors for that area, which is very reassuring. 

ーHave you seen measurable benefits?

HC: For instance, we used to manage waste with paper manifests, but Honda Trading helped us transition to electronic manifests including implementing the system. This has saved us about an hour of work per a single waste disposal task. It has also streamlined data aggregation for our stores, eliminated the need to search for documents, and reduced the time spent researching regulatory changes. Overall, the impact has been significant. 

HC: Before electronic manifests, we had to store paper documents for five years, which was a hassle. Now, we can access past records anytime through the system, eliminating the need for paper storage. Most importantly, whenever we have questions or concerns, Ms. Arafune provides prompt and accurate answers and even supports us with the actual tasks. This goes beyond just saving time--it adds real value. 

Promoting Environmental Initiatives to Customers

ーHow do you plan to expand the Environmental services?

Arafune: For automobile dealerships, there's still room for growth in regions like South Kanto and Chubu in Japan where many stores have yet to adopt the Environmental Service Package. We'll continue introducing our services to these areas. And also, we will continue to enhance our services with a view to global expansion, as environmental regulations are becoming increasingly stringent in Southeast Asia and other regions.
Additionally, with stricter environmental regulations emerging in Southeast Asia and other regions, we aim to enhance our services with a global perspective.

Beyond dealerships, we believe our Waste Management and Recycling Services can also benefit manufacturers. If any businesses are struggling with waste management, we encourage them to reach out to us, and we look forward to collaborating with them.

ーDo you have a message for your key customers, the dealerships?

Arafune: As part of the Honda Group, we aim to provide services that not only benefit individual companies but also enhance environmental awareness across the group. 
We aspire to be a trusted partner within and beyond the group, working together with our customers to foster greater interest in environmental issues and support their efforts toward better business management.