Honda to Cut Trim Levels and Eliminate Some Models
This move will not only bring Honda's stable of vehicles closer together but will lead the automaker to greater profits.
The EV is coming to Europe
CEO Takahiro Hachigo recently announced that the new EV will have the production name of the Honda E as well as future plans and initiatives. Of those plans for the future Honda plans on following the path that VW took and use a global platform for as many vehicles as possible.
Saying goodbye to consumer confusion
Honda has also noted that consumers may be just flat out overwhelmed at the number of choices they have when it comes to trim levels a model could have. DX, LX, EX, Si, Sport and if you're in Canada there is also Touring. The Honda CEO said that the automaker will globally cut the number of trim levels and options to just a third of what they presently are by 2025.
Passing on the savings
In addition to cutting out variations available on models, Honda will be "eliminating and consolidating" some similar regional models, There has been no word yet on which vehicles will be impacted by this trimming of the fat. However, it looks like it will be models that are similar to one another but sold in different regions. Those models will be merged into vehicles that can be sold across the territories to reduce clutter.
Getting rid of the layers
These measures are all about Honda reining in costs, streamlining production, giving research and production the space to come up with exciting new tech. "As we were growing in the U.S., our variants have also increased, which has worsened our efficiency," Hachigo said at a press conference where Honda announced a 13% decline in parent-company operating profit for the fiscal year ending March 31.
How about a new roadster?
"Compared with other manufacturers, Honda tends to have a higher number of variants," Hachigo said. "We want to focus on the variations that are really needed by consumers. In the end, everyone agreed we have too many variants. "
"For our business in North America, while keeping pace with sales expansion, we enhanced our model lineup and established a flexible production system where our plants sometimes produce various models in duplication to accommodate changes in market demand," Hachigo said.
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