Honda is drastically changing its business in Australia and confirmed it will cut the number of dealerships and adopt a fixed price sales model.
In a statement issued by Honda Australia, the company said changes will be made from July 1, 2021 following 23 consecutive months of decline across the local market.
Most notably, the Japanese carmaker will shift to a new agency-style business model that will deliver transparency on price and consistency of experience no matter which Honda dealer customers visit. Consistent prices will be applied across the country to new models, meaning prices will be non-negotiable. Honda will also distribute new cars arriving on the country on a first-come, first-served basis.
“We have excellent customer retention and want to reward our loyal and highly valued customer base with a more relational and less transactional experience,” Honda Australia director Stephen Collins said. “We know our customers want good value, strong resale value and a seamless ownership experience on top of reliable engineering and quality vehicles.”
As part of the new business model, Honda will retire the Jazz and City and focus on the HR-V, CR-V, and Civic hatch and sedan models. The future of the Accord, Civic Type R, NSX, and Odyssey remain unclear, Car Advice reports.
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Honda currently operates 105 showrooms across Australia but that number will be slashed. Some dealerships claim that no less than a dozen showrooms will continue to operate nationally but Honda has denied these claims.
“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,” Collins added. “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.”
