Corporate Climate Change – Honda Reveals Reorganization

Honda Motor announced today in Japan that it is making vast organizational and operational changes. The revisions will become effective 1 April 2023 in an attempt to accelerate its electrification and expand the range of its mobility products. The reorganization follows Honda’s announcement yesterday that Honda and GS Yuasa International have reached a basic agreement toward collaboration for high-capacity, high-output lithium-ion battery development and manufacturing. (autoinformed.com on:EV Battery Gold Rush – Honda and GS Yuasa JV Announced)

Today’s announcement concerns the restructuring of Regional Operations and Corporate Functions, as well as the creation of what is called “Electrification Business Development Operations.” EBDO is an outgrowth of the Business Development Operations established last April to strengthen electrification business.

Existing Honda organization chart.

The Electrification Business Development Operations will consolidate the business strategy and BEV product development functions of automobile business and electrification-related strategy and development functions of motorcycle and power products businesses “to further strengthen and accelerate Honda’s electrification business.” (autoinformed.com on:Honda Motor to Make Sweeping Organizational Changes in April to Survive and Sustain Itself as a Mobility Company)

Reorganization of Regional Operations

The current six regional operations will be consolidated into three regional operations — North America, China and Associated Regions. The new Associated Regions combine four current regional operations: Japan, Asia & Oceania, South America and the Europe, Africa and the Middle East Region. With this change, Honda will “execute electrification strategies and strengthen operations for each region based on its global strategy.”

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Reorganization of Corporate Functions

The  newly created Corporate Strategy Operations and Corporate Administration Operations will “further strengthen Honda’s initiatives in formulating, executing and communicating its corporate strategies toward new value creation, and the Corporate Administration Operations will pursue the total optimization of corporate resources, which is aligned with corporate strategy.”

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In a related announcement, American Honda Motor Co., Inc., today announced executive changes related to its Auto Sales operations. Dave Gardner, a longtime Honda executive within the company’s North American automobile operations, will retire as American Honda executive vice president of National Operations, effective April 1, 2023. Mamadou Diallo, currently vice president of Auto Sales, will be promoted to senior vice president and assume full responsibility for Auto Sales, including both the Honda and Acura sales organizations, Sales Planning, Logistics, Sales Strategy and a new Product Communications division.