Japan's Honda aims to cut more than $9 billion in costs over the next four years and has instructed suppliers to drastically reduce their prices, according to internal documents and one person familiar with the matter.
The plan is one of the most striking examples yet of how Japanese automakers are scrambling to deal with intensifying competition from China. BYD and other Chinese electric vehicle makers are capturing sizable market share in Southeast Asia, Latin America and Europe, powered by advanced software and battery technology — and prices that are by far the industry's lowest.
Honda, the world's largest motorcycle manufacturer, is trying to fix its struggling car business. It expects EV-related losses to ultimately total more than $12 billion, one of the biggest hits among global automakers, and is now shifting its focus to gasoline-electric hybrids. In May, it reported its first-ever annual loss as a publicly traded company.
The maker of the CR-V sport-utility vehicle now is apparently aiming to save 1.5 trillion yen ($9.4 billion) by 2030, according to a Reuters review.
This story is based on a Reuters review of internal company documents and interviews with two people familiar with the matter, both of whom declined to be identified because the information is not public.
