Honda consolidates production in the USANovember 11, 2020
Honda America moves all manufacturing and product development activities under one roof.
Honda has announced plans to merge all of its US car manufacturing and product development businesses into one new company, similar to the consolidation it announced in February in Japan. The new venture will be called Honda Development & Manufacturing of America (HDMA) and will include all of the automaker’s frame, engine and transmission capacity, as well as associated engineering and procurement operations.
In addition, the new company will also integrate Honda R&D Americas (HRA) automotive product development operations. The Japanese automaker said that the merger of its manufacturing operations and merger with the development of automotive products will begin on April 1, 2021.
“Today we are announcing a series of changes to our business operations that continue the journey we started last year to become a leaner, more agile and united company in North America. Each change is vital to our ongoing efforts to make Honda in America stronger and more responsive to customers, more able to invest in advanced technology, and prepared to meet future market needs, ”said North America Chief Executive Officer Honda, as well as President and CEO of American Honda, Shinji Aoyama.
Another implication of this move will be the integration of automotive product development and certain market research functions that are currently part of the HRA Los Angeles Center into the regional operations of the American Honda Motor Company based in Torrance, California. According to Honda, the main goal of the consolidation of the US automotive business is “to achieve continuous development of new products with increased efficiency and quality, thus positioning its North American operations for the future.”
As a result of these changes, all development, planning, purchasing, strategy and vehicle production will be consolidated into one company. This will reinforce what Honda calls a “one-tier” approach to product development, listing three key benefits of this philosophy: centralizing key business functions to improve efficiency and eliminate duplication, developing new products with increased speed and accuracy, and improving production performance with a focus on quality, price competitiveness, and the ability to deliver cars that customers love on time.
Companies that will be merged in whole or in part into HDMA include Honda of America Manufacturing, Honda Manufacturing from Alabama, Honda Manufacturing from Indiana, Honda Transmission Manufacturing of America, Honda Precision Parts from Georgia, Honda Engineering North America, Honda R&D Americas, and Honda Accessory. America.
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