Why The Honda Motor Stock Fell 0.87% (HMC)

By Amit Chowdhry ● Jan 25, 2023
  • The stock price of Honda Motor (HMC) fell by 0.87% in the most recent trading session. This is why.

The stock price of Honda Motor (HMC) fell by 0.87% in the most recent trading session.

Honda Motor announced that the company will make organizational and operational changes, effective April 1, 2023.

With this year’s changes, Honda will further solidify the direction of the organizational changes made last year with an eye toward the realization of carbon neutrality by 2050. And Honda will strive to further accelerate its electrification business and create new value by leveraging its broad and expanding range of mobility products and services.

Key points of the organizational changes:
1. Creation of Electrification Business Development Operations
2. Reorganization of Regional Operations
3. Reorganization of Corporate Functions

Details of the organizational changes:
1. Creation of Electrification Business Development Operations

Based on the Business Development Operations established in April last year to strengthen the electrification business, the Electrification Business Development Operations will be newly created. This operation will consolidate the business strategy and BEV product development functions of the automobile business and electrification-related strategy and development functions of the motorcycle and power products businesses to further strengthen and accelerate Honda’s electrification business.

2. Reorganization of Regional Operations

The current 6 regional operations will be consolidated into three regional operations — North America, China, and Associated Regions. The new Regional Operations (Associated Regions) will combine four current regional operations, namely Japan, Asia & Oceania, South America and Europe, Africa, and the Middle East Region. And with this change, Honda will execute electrification strategies and strengthen operations for each region based on its global strategy.

3. Reorganization of Corporate Functions

The Corporate Strategy Operations and Corporate Administration Operations will be newly created. And the Corporate Strategy Operations will further strengthen Honda’s initiatives in formulating, executing and communicating its corporate strategies toward new value creation, and the Corporate Administration Operations will pursue the total optimization of corporate resources, which is aligned with corporate strategy.