Honda creates division to speed up electrification development

HONDA Motor said on Tuesday (Jan 24) it would create a new division in a bid to strengthen and speed up its electrification business as part of an overhaul of its organisational structure.

The shake-up is part of the carmaker’s bid to catch up in the fast-growing market for full electric vehicles (EVs), led by Tesla Inc and China’s BYD. Japanese carmakers have been at risk of falling behind their European and US rivals in the EV market.

In changes effective on Apr 1, the new division would consolidate the Japanese automaker’s electrification strategy and development of cars, motorcycles and power products such as generators, it said in a statement.

The Japanese carmaker also said it will combine current six regional operations to three, composed of North America; China and associated regions including Japan; the rest of Asia and Europe.

Integrating to the three was to “rapidly develop the implementation of resource shifts in accordance with the future line-up strategy in line with the electrification acceleration”, a spokesperson said in a briefing.

The carmaker anticipates its vehicle line-up in North America and China would be mid- to large size, whereas that would be small- to mid-size in the rest of the region, the spokesperson said. REUTERS