A “restructure”.
Honda Australia will reduce its dealer network, introduce fixed pricing, and cut its vehicle range from July 2021.
This move over the next 15 months aims to keep the brand alive in Australia with sales steadily declining for the past 23 consecutive months.
Amid fierce rivalry, low dollar and changing customer preferences towards SUVs, dealers will shut, effectively reducing its 105 nationwide dealer showrooms to a yet-to-be-determined number.
The local arm says dealers in metropolitan areas will serve larger regions as part of a “hub-and-spoke” network.
At the same time, the manufacturer will set fixed, non-negotiable nationwide prices on all vehicles to curb customer ambiguity around pricing and potentially revenue losses.
This allows buyers to choose the exact model, colour and options on each Honda — either in stock or on order — at a consistent price.
This fixed pricing retail-like model is already reflected by the Mercedes-Benz EQC where it is ordered online only, ditto all Tesla vehicles.
Honda’s vehicle range will also be slashed, focusing on the Civic small hatch and sedan, HR-V small SUV, and CR-V mid-sizer — all of which are sourced from its Thailand factory.
This means the current Honda Jazz, City, just-launched Accord sedan, Odyssey people mover, and hero performance NSX will be axed.
According to the statement, this will transition the brand into an “agency-style business model, prioritise the customer experience over volume and consolidate its product range and dealer network to better respond to market realities and evolving customer preferences.”
Local Director, Stephen Collins, affirms Honda will remain Down Under and into the future.
“The transition over the next 15 months will be a gradual process to allow our dealer network to fully prepare for the new business model. Honda Australia has just celebrated its 50-year anniversary; now is the time to take the necessary steps to seek to ensure the business and network are set up for the future and that our customers are with us for the next 50 years,” Mr Collins says.
The Connected by Henry Man 