Honda announces reorganization effort to pursue global electrification strategy

Honda has unveiled a plan to reorganize its operations in the name of achieving its electrification goals.

In a press release published Tuesday, the automaker listed three key changes to its local and leadership structure. First, it revealed a new Electrification Business Development Operations department, which will facilitate development and business strategy for motorcycles, EVs and other products. Additionally, Honda’s regional efforts in Japan, Asia, South America, Europe, Africa and the Middle East will be consolidated under an “Associated Regions” operation. Finally, the brand will create Corporate Strategy Operations and Corporate Administration Operations divisions. Honda plans to implement all of these by April of this year.

While the emphasis on electrification is a marked reversal of its previous statements, the brand’s regional consolidation and new corporate organizations are the most likely to impact its operations in the short term. The adjustments are likely to help Honda optimize and streamline its operations. However, it is not immediately clear how the changes will affect automotive retail.

At present, the automaker plans to release 30 EVs by the end of the decade and become carbon neutral by 2050. However the company has received criticism in the past, along with other Japanese brands, for its apparent apprehension in the face of industry-wide efforts to phase out the internal combustion engine. While its electrification timeline remains unchanged, the restructuring could allow for faster EV adoption, depending on consumer demand. Whether Honda will increase the pace of EV production after the restructuring or if it will hold its current course remains to be seen.

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