The Japan-based automaker, which runs American Honda Motor Co. Inc. in Torrance, plans to combine all automobile manufacturing facilities in the United States related to frame, engine and transmission under a new company, Honda Development & Manufacturing of America.
HDMA will comprise eight entities: Honda R&D Americas and Honda Accessory America in Torrance; Honda of America Manufacturing, Honda Engineering North America, and Honda Transmission Manufacturing of America in Ohio; Honda Manufacturing of Alabama; Honda Manufacturing of Indiana; and Honda Precision Parts of Georgia.
Together these entities operate 19 major manufacturing plants and 14 research and development centers in North America.
The goal, according to the automaker, is to centralize key business functions to eliminate redundancies and implement new product development with increased speed and accuracy. The company said it is also looking to improve “quality, cost competitiveness and the ability to deliver vehicles that appeal to customers in a timely manner.”
The changes are a continuation of the journey Honda began last year “to become a more lean, nimble and unified company in North America,” American Honda President and Chief Executive Shinji Aoyama said in a statement.
“Each change is vital to our ongoing effort to make Honda in America stronger and more responsive to the customer, better able to invest in advanced technology, and prepared to meet future market needs,” he added.
The automaker also said that in January it will streamline Honda and Acura auto sales, and parts and service field operations, to be supervised by four regional managers.
The managers will serve as a link between the company’s national and field operations, “pushing decision-making authority down to local staff to more quickly address dealer and customer needs,” according to the company.
American Honda, through its network of more than 1,000 dealers, sold 126,987 vehicles last month, about 6.8% less than in October 2019. It sold 1.17 million vehicles during the first 10 months of 2020, a 17% decrease compared to the same period last year.
In November, the automaker revealed a prototype for the 2022 Civic. Instead of rolling out the updated model at a car show, the sporty sedan debuted on videogame streaming service Twitch.
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