Honda reorganizes to prioritize electrification

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Honda Motor Co., Ltd. announced changes to its organizational and operational structure that are aimed at accelerating its electrification business and goals of carbon neutrality by 2050.

Honda strives to remain and become even more recognized as “a company society wants to exist” in the electrified era. 

Honda Motor Co., Ltd.

Key points of the organizational changes include the creation of Electrification Business Development Operations, the reorganization of Regional Operations, and the reorganization of Corporate Functions.

The Electrification Business Development Operations will consolidate the business strategy and BEV product development functions of the automobile business and electrification-related strategy and development functions of the motorcycle and power products businesses to further accelerate Honda’s electrification business.

Honda will consolidate its current six regional operations into three regional operations: North America, China, and Associated Regions. The new Regional Operations (Associated Regions) will combine four current regional operations, namely Japan, Asia & Oceania, South America and the Europe, Africa, and the Middle East Region. With this change, Honda will execute electrification strategies and strengthen operations for each region based on its global strategy.

The company will also create new Corporate Strategy Operations and Corporate Administration Operations. The Corporate Strategy Operations will further strengthen Honda’s initiatives in formulating, executing, and communicating its corporate strategies towards new value creation, and the Corporate Administration Operations will pursue the total optimization of corporate resources, which is aligned with corporate strategy.

LG Energy Solution and Honda have created a joint venture to make batteries for Honda’s electric vehicles. The companies plan to invest $3.5 billion and create 2,200 jobs for the new battery plant, which will be located in Fayette County near Jeffersonville, Ohio. The plant is set to begin construction this year and aims to start mass production by 2025.

Sony and Honda have also announced a new electric car brand called AFEELA, which will be ready for the North American market by 2026. AFEELA will leverage Sony’s expertise in AI, entertainment, virtual reality, and augmented reality to offer a unique EV experience. The car will have over 40 sensors embedded throughout the exterior, enhancing its ability to detect objects and drive autonomously.

Honda aims to remain and become even more recognized as “a company society wants to exist” in the electrified era by further accelerating its initiatives to transform itself through electrification. This move is in line with the growing trend of electrification in the automobile industry and Honda’s commitment to sustainable mobility_


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