Honda Motor to Make Sweeping Organizational Changes in April to Survive and Sustain Itself as a Mobility Company

Honda Motor Co. today in Japan announced sweeping organizational changes on 1April 2022 that it says will “transform itself into a mobility company focused on services and solutions that can achieve new growth and new value creation.” It is trying to realize its announced target of carbon neutrality for all products and corporate activities Honda is involved in by 2050.

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Translation: The changes are needed to survive the electrification business, new business, and combined solution business, which will require bolstering the development of software, as well as the strengthening the development of core electrification technologies.

The “optimization of global resource allocation” will come  under the leadership of business operations, through the creation of Business Operating Boards (BOB). This also requires a  new organization combining hardware with software and services. Business and regional operations need to change to adapt to electrification and the digital age. Moreover, given the expense of the ongoing car wars, Honda is consolidating existing business areas. Regional operations in Europe, Africa and the Middle East will be combined.

Honda’s Automobile Operations will have a new structure for collaboration with the new Business Development Operations. It will also increase the pace of reform of Honda Monozukuri (art of making things) through strengthening of production engineering, quality and the supply chain.

Motorcycle and Power Products Operations will be combined with the consolidation of two operational structures.The current Monozukuri Center of Motorcycle Operations will now include the production planning and purchase planning divisions and production facilities of both operations.