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Honda Restructures North American Operations

Initiatives target reforms for design, R&D, production and retail operations.
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Honda is combining its North American automotive production development and manufacturing activities, integrating product design and streamlining its sales and service operations.

The overhaul aims to make Honda a “more lean nimble and unified company” with a better ability to focus its future tech investments, says Shinji Aoyama, CEO of American Honda.

Fewer Companies

Currently, most Honda factories in North America are each run by their own company. That will end on April 1 with the debut of the new Honda Development & Manufacturing of America.

HDMA combines vehicle development, purchasing, strategy and production, largely by absorbing all or most of the activities of eight current companies in North America:

  • Honda of America Manufacturing
  • Honda Manufacturing of Alabama
  • Honda Manufacturing of Indiana
  • Honda Transmission Manufacturing of America
  • Honda Precision Parts of Georgia
  • Honda Engineering North America
  • Honda R&D Americas
  • Honda Accessory America

HDMA says vehicle product design and certain market research activities currently conducted by the HRA Los Angeles Center will become part of nearby Torrance-based regional operations of American Honda Motor Co.

Retail Shakeup

On the retail side, Honda is restructuring its auto sales and its parts and service business units. The company says it will install four regional managers, a new post, to help align messaging and contact among its headquarters, zone staffs and Honda/Acura dealers.

Honda notes that it announced similar structural changes for its operations in Japan in February. That initiative has merged the company’s R&D, engineering, production and purchasing operations into Honda Motor’s automobile division.

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