What Is Happening To Honda In Australia?

The procedure for purchasing a new car hasn’t altered much in decades. At Honda, we believe it can be made easier, clearer, and more pleasurable.

Because of this, we are implementing certain modifications now that the automobile industry is undergoing transition. We’re staying put, so don’t worry. We are dedicated to the Australian market, but our devoted clients come first.

However, in order to create an even better and more durable Honda for you, we have realized the necessity of adjusting and evolving our business and entire customer experience.

With a new, customer-centric approach to the automobile purchase and ownership experience, Honda has now taken the first step in a bold new path to lead the automotive industry in this country and make it easier, more seamless, and more pleasurable.

The introduction of the Honda Price Promise for our consumers, which provides price consistency across our entire network, is one of the important aspects of this new experience.

No matter which Honda Center you visit in Australia, you will pay the same price for your new Honda vehicle* thanks to the Honda Price Promise.

There will be no more haggling, comparison shopping, or sales pressure. We think it makes buying a new car lot more clear and fun.

The renowned quality and dependability of our vehicles, our affordable prices, as well as the knowledgeable Honda technicians and helpful product specialists working across our network of Honda Centres, won’t change.

Pioneering has its difficulties, but Honda is all about pushing the boundaries of what is conceivable. We predict there may be some hiccups along the way and certain difficulties we must overcome during this process.

We’ll take on these difficulties head-on. When problems arise, we will work to find solutions as soon as feasible. Even while we might not always get it right, we are dedicated to learning from our mistakes, improving what we can, and doing so as quickly and effectively as we can.

We are tremendously excited about the future and incredibly proud of Australia’s 52-year rich past. We appreciate that you have chosen Honda consistently over the years, and we are eager to start writing our next chapter so that we can continue to bring you delight.

Is Honda going out of business in Australia?

When questioned about the possibility of Honda leaving Australia like Holden did after a protracted period of poor sales, Mr. Collins responded, “Honda will not leave Australia. We have a strategy, we’re devoted to it, and we have no intention of leaving Australia.

Are Honda vehicles still available in Australia?

Honda’s sales performance in 2022 could have a significant impact on how you purchase new cars in the future.

According to reports, the Japanese company has significantly changed how it conducts business in Australia. For the purpose of marketing its cars, it has abandoned the conventional dealership structure and opted for what is known as “The Agency Model.”

As a result, you, the consumer, are buying directly from Honda Australia and using the dealer primarily for test drives, deliveries, and servicing.

What is going on with Australia’s Honda dealerships?

Honda Australia is facing legal action from the Australian Competition and Consumer Commission (ACCC) for allegedly misleading customers by saying two dealerships had closed when in fact they were still open.

Consumer watchdogs filed a complaint over comments Honda Australia made to customers regarding two former authorized Honda dealerships: Tynan Motors Pty Ltd (Tynan) in New South Wales and Brighton Automotive Holdings Pty Ltd (Astoria) in Victoria.

It claims that between January and June 2021, Honda Australia misrepresented to clients that these two dealerships would either close or had already done so and would no longer provide servicing for Honda automobiles.

Even though the franchise agreements at these locations had been terminated as a result of Honda Australia’s restructuring, the companies were still functioning as independent dealerships and continued to provide maintenance for automobiles, including Hondas.

Customers of these two dealerships were allegedly advised by Honda via phone calls, text messages, and emails that they needed to go to an another Honda dealership for service.

Your prior service dealer has closed, so please use this link to locate your nearby Honda Service Center, according to one automated text message released by the ACCC. [link]

According to ACCC Commissioner Liza Carver, Honda allegedly denied customers the chance to make an educated decision about their options for maintaining their vehicles in favor of a dealership that may have been more inconvenient or expensive for them.

By falsely reporting that Astoria and Tynan businesses had closed or would soon close, we also contend Honda damaged those companies’ reputations and may have discouraged consumers from servicing their Honda vehicles there.

Honda Australia has issued the following statement:

The investigation into this matter by the ACCC has received Honda Australia’s cooperation. We are currently examining the most recent submission by the ACCC and are unable to comment further at this time on particular situations, specifics pertaining to the claims made, or specific dealers.

As part of its restructuring and transition to an agency sales model, the business terminated the franchise agreements for 36 of its dealerships with effect from June 30, 2021.

Both Astoria and Tynan had been offering Honda cars for about 50 years.

Brighton Automotive Holdings claims that on March 23, 2020, without any previous warning, it was informed that its agreement will expire on June 30, 2021 in a submission to the Senate Inquiry investigating the interactions between automakers and dealers late in 2020.

Furthermore, it claimed that the loss the dealer endured was unfairly devalued by Honda and Deloitte’s compensation approach.

The ACCC has highlighted the implementation of the Motor Vehicle Service and Repair Information Sharing Scheme, which goes into force on July 1, 2022, in addition to announcing the legal actions against Honda.

This program mandates that OEM service and repair information be made accessible to Australian independent repairers for a reasonable market price.

Why are Honda dealerships in Australia closing down?

Due to Honda Australia’s transition to an agency sales model, ONE of the most successful and long-running Honda dealerships in Australia has been closed and declared surplus to requirements, leaving the company without a future in Honda sales or service as of mid-2021.

Why is Honda ceasing operations?

The installed production capacity at Honda’s Tapukara factory is 1.8 lakh units annually. (AP Picture)

In response to the second wave of COVID, Honda Cars India said on Thursday that it is moving up the maintenance downtime at its production facility in Rajasthan by almost ten days.

The Japanese manufacturer, which offers the Amaze and City among its models, has made the decision to halt manufacturing at its Tapukara location for 12 days beginning on May 7 in an effort to stop the spread of coronavirus illnesses.

Do I need a Honda vehicle?

Numerous honors Honda has received are proof of its high caliber. More often than any other brand, this business has received the Car & Driver Top Manufacturer Awards. They have gotten this honor roughly 80 times, which is twice as many as Toyota, who only received it 38 times. That honor was given to the Honda Accord only 27 times.

Honda makes its automobiles in Australia, where?

It serves as the center of the newest automotive empire in the world, one that sends an increasing number of vehicles, including Honda vehicles, to Australia. By the end of July, 96,603 Thai-built vehicles had been sold in Australia this year alone, up from 82,656 in 2009.

In 1998, Honda Australia became the first firm to import passenger automobiles from Thailand, but it took another 12 years for the Japanese manufacturer to feel confident enough in the quality of Thai-built goods to make a statement about them.

However, over 80% of Honda cars sold in Australia today are built in Thailand. The City, Jazz, Civic sedan, CR-V, and Accord are among them. The Accord Euro, Legend, and Odyssey are still produced in Japan, while the Civic hatch is built in the UK.

Not only Honda, but “more and more manufacturers are coming here to make automobiles,” according to business spokesman Mark Higgins. They consist of the majority of pick-up trucks marketed in Australia, the Mazda2, and – very soon – more small cars from Suzuki and Ford, led by the upcoming Fiesta.

With 778 automobiles, the Thai-Honda adventure officially began in 1998. Exports rose considerably to 14,071 in 2005 thanks to the Free Trade Agreement between Australia and Thailand and the relocation of jazz production from Japan to Bangkok.

Honda shipments from Thailand to Australia were 51,424 in 2007, however they sharply decreased amid the global financial crisis. They are anticipated to number 40,197 this year. However, that amount still represents a negligible part of the Thai Honda factory’s 240,000 yearly production capacity.

About 5000 Thai workers and 80 Japanese managers are employed at the plant, which has an area of 851,800 square meters. They work two to three shifts every day, receive two weeks of annual leave, and Honda pays for their food.

Although Thailand’s oppressively hot and humid heat is tempered in the body and frame plant by opening up a complete wall to prevailing winds rather than employing air conditioning in an effort to save electricity, working conditions are still not ideal.

Makoto Morii, vice-president of Honda Automotive Thailand Corporation, claims that the facility is only 50% automated, compared to Japanese plants that are 90% automated. “Because the pay is lower here, we use more hand welding. We can hire more people here rather of spending money on expensive machinery,” he says.

Additionally, he defends the degree of human participation and has high regard for his Thai employees. The level of mechanical proficiency among Thais and Japanese is comparable. He claims that compared to robots, people are more flexible.

He acknowledges, though, that complete automation will be necessary for the company to begin producing more complex hybrid vehicles. He acknowledges that we don’t have a plan for expanding the factory.