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There is a strong affinity between Honda and Nordic consumers. Proof of this is the impressive metamorphosis of this Japanese automotive manufacturer in a market that boasts of giants such as Volvo and Saab. Honda is currently ranked as one of the fastest-growing Japanese brands in the Nordic region. A result of vast amounts of marketing dollars spent in promoting products? Not exactly. Honda's growing appeal in the region is not so much a result of aggressive marketing (although it has played an important role), but rather its long-term commitment and presence in the market. Starting almost 30 years ago through a network of dealers, Honda followed the traditional path that most foreign producers take when entering this remote market. It was only in 1994, amid the Swedish financial crisis, that Honda made the decision to establish a full subsidiary in Malmo. "When we first came in we were only selling 1,300 cars a year, terrible for Honda standards. Today we have brought it up to almost 3,000 cars," explained Honda Sweden's aptly-named president, Tetsuya Honda. The success of Honda in the Swedish market has led the organization to reevaluate its current position and devise a structure in which the Nordic business will be centrally run out of the Malmo base. The decision to centralize Nordic operations has been a result of the current business situation. "We have a network of distributors in all the major Nordic markets, but currency fluctuations have affected their business. It was very much like the situation here in Sweden during the early-90s," said Honda. "To resolve this, we sat together with our distributors and came to an agreement that the best course of action was to make them Honda retailers, not distributors. So now we have centralized our operations and back-office functions out of our Nordic HQ, which is here in Sweden. This will make for a more focused Nordic organization, where we are committed to bringing the best service to the different local markets." In reorganizational programs like this, the devil may be the details. Honda explained, "It used to be that the whole Nordic area had 120 staff. Now, with the centralization of management, our plan is to have only 60 people handling the area. The detail for us will be in maximizing the use of the technology that is around us. Our success will be dependent on how we streamline the communication process within the organization and how effectively we are able to maneuver in the different markets." The company chief is very upbeat about the challenge that faces Honda Sweden. Already boasting success in bringing the Honda brand to prominence in the Swedish market, he is faced with the simple but rigorous task of applying his knowledge on a grander scale. But he is quick to point out that the task ahead is not his alone. "This new centralization of our Nordic organization here in Sweden is also proving a challenge for our local Swedish staff. They have come to realize that they have a new role and added responsibility in the Honda group. I am confident that we will all deliver."
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Honda www.honda.se Yamaha www.yamaha-motor.se Scania www.scania.com IFS www.ifsworld.com  |
Tetsuya Honda has seen Honda catch up with the auto giants in Sweden.