Honda CEO outlines ‘future vision’, drives 'glocal' strategy

In his inaugural speech as the new president and CEO of Honda Motor Co, Takahiro Hachigo today unveiled his future vision for the company.

It mainly involves advancement of the six-region (China, Japan, North America, South America, Europe/Middle East/Africa and Asia) global operation structure, and “continuous development of challenging products unique to Honda and delivering them to customers around the world.”

Honda employs a matrix management structure, under which each region has built up their own production capacity and established sales, development and purchasing functions. This has made it possible for each region to develop exclusive models for their region.

The company plans to utilize regional production capacity for its global operations as a whole. This global-local (glocal) strategy is typical of global corporations which modify products and services to suit local difference in customer taste, culture, pricing and/or regulations. 

To demonstrate the advancement of the six-region structure, operational functions of the global headquarters will be enhanced, to strongly promote mutually complementary inter-regional relationships. For example, the next generation of the Civic 5-door will be supplied from Europe to other regions, whereas the next generation CR-V will be supplied from Canada to Europe.

The first units to be shipped from Honda of the UK Manufacturing (pictured above) are due to arrive in Japanese showrooms later this year.  This news follows the recent announcement of new investment at the plant of £200 million (Rs 1,968 crore) with Honda UK Manufacturing becoming the global production hub for the next-generation Civic five door model.

Furthermore, Honda will begin local production of the Honda Accord this month in Nigeria (with planned annual production capacity of 1,000 units.). This is the first time Honda will assemble automobiles in Africa.

Hachigo stated that “Honda will continue to be firmly committed to the creation of ‘challenging products’ unique to Honda’.  As such, the next-generation Civic will be equipped with a new platform and downsized turbo engine. Furthermore, core global Honda models – the CR-V and Accord – will undergo full model changes in the future to make them more attractive vehicles that feature more new technologies, higher competitiveness and innovative designs.

Meanwhile, Honda says it plans to begin sales in Japan of the next-generation successor to the FCX Clarity before the end-March 2016.  In addition, the company will be evolving the next generation of mobility products to use electricity as a core technology.

In the area of motorcycles, the CRF1000L, a dual-purpose model, is scheduled to be introduced to the European market at the end of 2015 and then in Japan and North America. This is the embodiment of a ‘challenging product’ that is unique to Honda.