


Honda China implements large-scale personnel optimization to promote electric transformation and reduce costs
According to the Nihon Keizai Shimbun report, Honda China Headquarters Masayuki Igarashi revealed that Honda plans to carry out personnel optimization strategies in China to reduce fixed costs and accelerate the transition to the pure electric vehicle market.
Masayuki Igarashi said that in order to cope with the increasingly fierce market competition and falling prices of new energy vehicles, Honda will continue to promote the transformation of new energy vehicles in 2024. and grapple with the challenges posed by price wars. He believes that due to downward pressure on prices, it will be difficult for traditional fuel vehicles, including hybrid vehicles, to achieve profitability. Therefore, Honda plans to further reduce production costs by modularizing parts. This will enable Honda to better respond to market competition and provide more competitive products.
It is understood that Guangqi Honda, a joint venture jointly established by Honda and Guangzhou Automobile Group, conducted a layoff in November 2023, laying off a total of 900 employees. Moreover, they are currently planning a new round of layoffs. In addition, due to fierce market competition, Honda's main models such as Accord and CR-V have to cut prices to attract more consumers. In addition, the market performance of some new energy models has not met expectations.
Masayuki Igarashi said that Honda will rely on previous earnings and profits from fuel vehicles to maintain operations until pure electric vehicles can become fully profitable. He revealed that Honda plans to open new electric vehicle factories in Guangzhou and Wuhan, China within this year. However, due to the overall overcapacity problem, how to effectively utilize these new factories while optimizing personnel will become a major challenge for Honda. Still, Honda plans to accelerate the pace of product launches by launching at least two new electric vehicles a year.
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