Honda, which has been reeling due to a series of recalls in the U.S., scrapped its global sales target of 6 million units by the end of 2017 as it follows the example of one of its principal Japanese rivals, Toyota, which is also scaling back sales targets.
Takanobu Ito, Honda’s chief executive, told reporters during a test drive in northern Japan that Honda will reduce the number of variations of its vehicles it manufactures. This will reduce the workload of its over-taxed engineering staff and protect the company’s reputation for quality, which has been undermined by a series of safety-related recalls of airbags made by Takata Corp., which was once one of its most trusted suppliers.
“We want to be more efficient,” Ito said, according to the Wall Street Journal. “Even though we’re narrowing these down that doesn’t mean our business would shrink.” (more…)