Honda has announced plans to develop an electric division to solidify its position in the electric vehicle industry under its new organizational structure, per the automaker’s press release.
“We will further strengthen the direction of the organizational change that was implemented last year in order to achieve carbon neutrality by 2050, aiming to further accelerate the electrification business and create new value through the expansion of mobility.”
Honda
Organizational change
The new division would unify the Japanese automaker’s electrification effort, with changes taking effect on April 1, 2023. The automaker stated that it would also aid with the development of electric vehicles and power products like generators.
Additionally, Honda announced that it would reduce its six regional operations to just three. The new divisions of regional headquarters are as follows: North America, China, and Integration.
As a newly created headquarters, the integrated division will bring together the following regions: Japan, Asia/Oceania, South America, and Europe/Africa/Middle East.
In essence, the automaker would be able to swiftly undertake resource adjustments per the future lineup plan in electrification by integrating the regional operations into three. Through this, Honda can solidify its operations in each mentioned region.
“We will strengthen efforts to formulate, execute, and disseminate corporate strategies aimed at creating new value.”
Honda
In addition, Honda stated that it planned to offer mid to large-sized EVs in China and North America. Meanwhile, it aims to have small- to mid-size vehicles to account for most of its products in the rest of the globe.
Why is this necessary?
Honda’s reorganization of its management system is apparently part of its effort to catch up in the rapidly expanding EV market, which is currently dominated by America’s Tesla and China’s BYD.
Japanese automakers like Honda and Toyota have been under threat of lagging behind their competitors from Europe and the US in the EV industry.
In retrospect, Honda announced its target in 2022 to launch 30 EV models worldwide and build approximately 2 million EVs annually by 2030.
This move is indeed a significant leap in Honda’s automotive business. The Japanese auto giant will consolidate its resources currently dispersed across several parts of its internal organizational structure into a new dedicated electrification division. By doing so, the automaker will be aided in achieving its net-zero emissions target by 2025.
