Honda to implement organizational, operational adjustments in auto, moto, power products

MANILA: Honda Motor Company Limited is set to implement organizational and operational changes starting April 1.

In a statement, the Japanese marque shared that the adjustment is intended to ensure that it will “further strengthen its ability to grasp market and technology trends more accurately and deliver the original technologies and new value of Honda to the market at the optimal timing.”

Such an announcement was made after Honda bared that it is expecting a massive drop in profit for fiscal year 2026 (which covers the April 2025-March 2026 timeline). Based on the forecast, the company might lose as much as 60 percent in earnings.

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As part of the organizational changes, the research and development (R&D) functions of the Automobile Development Operations and the SDV (software defined vehicle) Business Development Unit within the Automobile Operations will be transferred to Honda R&D Company.

The company will also merge its Automobile Business Strategy Unit and Sales Unit into one (Business Strategy Unit and Regional Business Unit) and the business functions of the SDV Business Development Unit will be reorganized into the new Business Strategy Unit — which will lead to the disbandment of the SDV Business Development Unit.

The amendments in the organization are eyed to enhance its product planning and sales capabilities considering “market dynamics and customer needs” as well as bolster the competitiveness of its products from the mid- to long-term perspectives.

Aside from that, the sales, business strategy and product development functions for motorcycle and power products operations will be integrated.

“Through the integrated management of electrification and ICE business, Honda will pursue optimal allocation of resources and continue initiatives toward carbon neutrality, while striving to ensure the continuous creation of increasingly competitive products,” the company stated.

“Through these organizational changes, Honda will further accelerate ongoing initiatives for its corporate transformation through electrification and new value creation, through which Honda will strive to establish a more distinctive presence as ‘a company society wants to exist’ even in the era of electrification and intelligent technologies,” Honda ended.

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