Honda to reduce model trim lines, streamline output
Honda Motor will slash the number of model variations available in North America and other regions and overhaul its production base in a new push to improve efficiency as growing investments in next-generation technologies pressures the company’s bottom line.
Honda CEO Takahiro Hachigo said the company will cut the number of model variations offered on global nameplates such as the Civic, Accord, Fit (Jazz in Europe) and CR-V to one-third their current number by 2025. Regional nameplates will also be consolidated to streamline product development and production.
«Honda does not intend to reduce the number of nameplates, just the number of trim options» said Hachigo.
As part of the move, Honda will also simplify model allocation at assembly plants, including those in North America. Doing so will help Honda achieve 100 percent capacity utilization worldwide by 2020, up from 90 percent currently, and cut global production costs 10 percent by 2025, compared with 2018 levels.
The company has also developed a new, more compact i-MMD system for small vehicles. It will first appear in the redesigned Fit compact that will be shown at this fall’s Tokyo Motor Show.
By 2022, Honda wants to reduce the cost of the i-MMD system by 25 percent, compared to 2018 levels. The goal is to eventually achieve cost and profit parity with gasoline engines.