Honda announces creation of exclusive division for electric cars

Honda announces creation of exclusive division for electric cars

Honda is committed to achieving carbon neutrality by 2050 and, for that, announced an important change in its organizational and operational structure, focused on the electrification of the line. Now, in addition to the newly created Afeela, a joint venture with Sony, the Japanese automaker will also have an exclusive division for manufacturing electric cars.

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According to a statement released on the company’s global website, the changes will begin to be implemented on April 1, 2023 “to further accelerate its electrification business and create new value, leveraging its broad and expanding range of mobility products and services”.

Honda will also start to define which models will be launched in each market, with lines dedicated exclusively to the United States and others designed more to meet demand in Europe and part of Asia. In the first case, medium and large cars fit, which can also be used in China, while in the second scenario more compact cars would be present.

Honda change focal points

The changes announced by Honda are centered on three focal points.

1. Creation of Electrification Business Development Operations

According to the automaker, this transaction “will consolidate the business strategy and BEV product development functions of the automotive business and the strategy and development functions related to the electrification of the motorcycle business and energy products to further strengthen and accelerate the Honda’s Electrification Business”.

2. Reorganization of regional operations

The organizational change will see Honda reduce its regional operations from six to three (North America, China and associated regions).

“With this change, Honda will execute electrification strategies and strengthen operations for each region based on its global strategy,” explained the company.

3. Function Reorganization

Honda informed that departments called Corporate Strategy Operations and Corporate Administration Operations will be created.

According to the automaker, the Corporate Strategy operations “will further strengthen Honda’s initiatives in the formulation, execution and communication of its corporate strategies aimed at creating new values, and the Corporate Administration Operations will seek the total optimization of corporate resources , aligned with the corporate strategy”.