In March, amid the COVID-19 pandemic, Honda Australia announced drastic changes to its business and dealer network that could lead to the shutdown of numerous dealerships across the country.
In a news release, Honda Australia said the company is restructuring its automotive business model and dealer network from July 2021 to prioritize the customer experience over volume, while also aiming to deliver transparent and consistent new vehicle prices.
“We can’t sit still,” said Stephen Collins, Director, Honda Australia. “The Australian market has seen 23 consecutive months of decline and every automotive business is rapidly changing.”
“Customer preferences are changing and other industries have evolved while the automotive industry still uses a model that is decades old,” said Collins.
Changes to its dealer network in Australia will take place over the next 15 months, when Honda shifts to a new agency-style business model in hopes of strengthening its business.
The company said it did not know how many dealerships would remain under the new model, as this has not yet been determined. However, dealerships located in metropolitan areas “will have larger regions as part of a ‘hub-and-spoke’ network,” said Honda Australia.
“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,” said Collins. “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.”
Honda Australia operates more than 100 dealerships across Australia — 105 to be specific, according to Carscoops. The U.S. news agency said that number will be “slashed”, and that some dealerships “claim that no less than a dozen showrooms will continue to operate nationally.” However, Carscoops also said Honda has denied the claims.
