So when Phil Crossman, managing director, Honda UK, tells AM that “where we are is exactly where we want to be”, he reveals how ambitions have been tempered for the Japanese brand.
However, Crossman insists there is cause for optimism – a new range of products, improved customer retention and the promise of “natural, organic growth”.
Honda UK’s ambitious 2017 targets were designed to arrest a decline that developed as a “perfect storm” – the global recession, Japan’s tsunami and the Thai floods – caused production levels to stutter and weakened the yen.
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LT - 17/09/2016 07:33
I worked as an accountant within the Honda network for over 7 years and although Honda has had some very bad luck in recent years, most of its problems, specifically in the UK and Europe are of its own making or should I say failing. These failings are chiefly caused by Honda's inability to recognise and quickly react to market changes and the demands of the modern day driver. This is also compounded by a complete lack of foresight, innovation, pro-active planning and empathy for its dealer network, who often find selling the Honda product is not financially viable or sustainable. This is endorsed by the erosion over the years of its market share and retail groups interested in setting up Honda only dealerships. It is sad that Honda have failed to grasp that their highly respected and excellent build quality is now the new standard with most of their competitors. The difference being is that many of Honda's competitors, manufacturer cars with better styling and on board technology that has greater sex appeal. Honda like a phoenix is more than capable of rising from the ashes, but they need to soften their approach and start listening to their customers and their dealer network if they are to have a long term future in Europe I fear. Some of their advertising particularly that broadcast on television may also be viewed by some as stale and old fashion. Their unique selling point being lost in the arguably boring message. My direct experience with Honda is that they are subtly aggressive (compared with other manufacturers) having a superiority complex which only serves to alienate their dealer network. This is done in a manner of ways, but in particular by forcing unrealistic and unachievable sales targets on them, which when rationally challenged are nonetheless put into stone. With products that are argueably overpriced and a range that is incomplete (no saloon), it should come as no surprise to Honda to see some of its long established dealers going out of business or changing hands.