The automaker will consolidate its electrification strategy for all of its vehicle development programs on April 1st.
Honda will also combine its six regional operations into three units.
This should help the company catch up to Tesla and BYD.
Japanese automakers have been quite slow to react in terms of electrification but now Honda wants to catch up to rivals by creating a new division.
Faced with the impressive successes of Tesla and Chinese automaker BYD in the EV space, Honda decided to speed up its electrification process which currently depends on partners such as General Motors and Sony.
The new Business Development Operations division will become effective on April 1st and it will consolidate Honda’s electrification efforts from its automotive, motorcycle, and power products divisions.
In addition, Honda will combine its six current regional operations into three new ones: North America, China and Associated regions, and the rest of the world (Oceania, Asia, Europe, Middle East, Africa, and South America).
These three regions will move towards electrification at their own rate and they will receive unique models that may not be shared with other regions.
According to Honda, this will help it accelerate its rate of electrification in key markets such as the United States and China.
As of now, Honda has no electric vehicle to offer in North America, but this should be rectified in 2024 with the arrival of the GM Ultium-based Prologue and Acura ZDX.
These models will be followed by another one, designed in collaboration with Sony, that should roll out from a North American Honda plant in 2026.
Since these models had been announced long before the new division, the effects of the automaker’s restructuring could be seen in the form of additional EVs being launched in a similar timeframe.
Likewise, the company didn’t say if its plans to launch 30 new electric vehicles globally and produce 2 million EVs per year by 2030 are still on track or if they could be bonified by the new division.
Source: Automotive News