Hybrids to drive core awareness: New Honda boss

Honda Australia's recovery will be based on a re-appreciation for the brand's core values and built via hybrid awareness and "slow and steady growth." That's the word from new CEO Satoshi Matsuzawa, who fronted the local motoring media for the first time in Sydney last night.

The 28-year Honda veteran officially took the reins of the local company last month. The mechanical engineer comes to Oz after a three-year stint as general Manager of the Japanese giant's Overseas Operation Office (with responsibility for car and motorcycle operations for the Asia Oceania region including Australia). Longer term, he boasts a background in power products and admits he has only limited direct automotive experience.

Matsuzawa says being a relative newcomer to the automotive sphere is an advantage in the post-GFC marketplace.

"It's a challenging position for me but I have a freshness -- just like when I started with Honda 28 years ago."

Matsuzawa says 'his' Honda will strive to be more customer-focused. He says he wants to create more "joy" in the buying process and will seek to better communicate the core strengths of Honda products.

Honda Australia has slipped in terms of market share over the past two years. Where three or four years ago the company was striving towards a 10 per cent share of the market, in April 2010 it struggled to reach 4.0. Year to date Honda's share is down 10 per cent in a market that has grown by double that.

While last year Honda sold just over 41,000 cars locally, this year the new CEO says the target is 50,000 cars.

"Honda's focus during the GFC was to survive as a global company, so we can continue to provide good products to our customers. When GFC hit we raised prices and decreased our inventory worldwide. Now, we must be close to our customers and give them good value products [to bring them back]."

The new boss's comments refer to Honda Australia's sales/product strategy for the remainder of 2010 and into 2011. During this time, the brand will focus on value adding key existing models via limited editions. Limited edition Civic and Accord  have already kicked off the sales drive.

New hybrid models will also help, he says.

"We will create momentum with our hybrid models -- we can use them to show our advanced technology across our models."

Matsuzawa says he believes Honda has not continued to "sell" Australian customers on the core strengths of its products.

"The Fundamental qualities and performance of our vehicles is very good but customers are easily distracted from core values [by newer, opposition cars] -- they are not so visible. We have very good products but we struggle to tell customers. Hybrids tell customers that Honda's key [advantage] is technology."

In an effort to concentrate on key models, the new Honda boss says he may look to trim the maker's local range. The expensive and under-performing (sales-wise) UK-built Civic Si five-door hatch (pictured) is likely to be dropped from the range, he says.

In the long term Honda Australia is looking for around eight per cent share say senior insiders. But Matsukawa says that goal is some way off.

"It is about steps. In the future we can maybe reach 10 per cent [market share] but we cannot expect big jumps. Steady growth is our aim."

In terms of Honda's most important competition, Matsuzawa cites Mazda's success in Australia.

"I have to understand why Mazda is so good in Australia. It is a big contrast to other countries. Maybe we have to learn from them [Mazda]. Their product is not a big difference but maybe they have built their brand better here than in other countries."

Hyundai too is on his watch list. He says the key Korean marque's products are "sort of" competitors for Honda. But he also comments on the growing strength of the brand.

"Honestly they have improved their products and their brand awareness the same as Samsung. We have to be careful to watch this movement... And not only in Australia."

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