It looks like we'll have to say goodbye to several models from Honda in the not too distant future. In a bid to boost efficiency, as well as reduce and reorganize its global and regional core models, Honda Motor CEO Takahiro Hachigo said that they will adopting a new global strategy.
These involves killing off several nameplates currently on sale, streamlining the variant offerings, as well as build an all-new vehicle architecture.
Currently, Honda has five global models (Civic, Accord, CR-V, Fit/Jazz, and HR-V) which account for 60% of the company's global auto sales. Then there's the other regional models like the N Series in Japan, Pilot for the North American market, and the Crider for China. While they play a very important role at their respective region, Hachigo did say that accommodating the needs of several markets has resulted in reduced efficiency for the company.
“We will undertake initiatives to further strengthen our inter-regional coordination and collaboration and evolution of vehicle development in order to simultaneously increase the attractiveness and efficiency of both global and regional models,” said Hachigo.
As to what exact models will be axed in the coming years, Honda has yet to say which ones will be put out to pasture. However, the automaker did say that come 2025, they will be reducing the total number of variants and options for the global models to one-third of what they have now. In addition, the company will also be increasing efficiency by eliminating / merging similar models across multiple regions.
A new global vehicle architecture is also being developed by Honda in which they hope will help increase efficiency, reduce costs, as well as expand parts-sharing across several nameplates. It will be first used on a new global model that they will be launching next year. In the future, Honda plans to use the new architecture on more models.
Besides speeding up production and reducing manufacturing costs, Honda claims that by using the new architecture, they will reduce the number of development hours by 30%. That way, Honda can focus more on research and development in other areas while still continue making new technologies.