Honda details changes to dealers

Honda is busy talking with dealers about looming changes to how they operate as the marque prepares to overhaul its agency model network.

The move will see the introduction from May of three store types for its 17 independent agents and the creation of a new e-platform for direct sales to the public.

Nobuya Sonoda, managing director of Honda NZ, tells Autofile Online why the company is changing its network structure and what it will mean for dealers.

Autofile Online: What has brought about Honda NZ shifting to an agency network and why now? 

Nobuya Sonoda: We have been thinking for some time, well before the arrival of Covid-19, about the future structure of our national network. 

The changes are simply about Honda introducing an e-commerce platform that allows customers options to shop online if that’s what they want.

It won’t take away the importance we place on in-store service and hospitality. That remains an absolute priority – nothing changes on this front. 

The purpose here is to bring Honda NZ closer to our customers and give them a greater purchasing experience through our established 20-years-plus unique Honda “price promise values” of fairness, transparency and hospitality.

Last year saw a rapid growth in the number of customers purchasing products online in terms of the value of purchases being made and types of products.

Customers increasingly expect to be able to purchase cars directly from manufacturers via online platforms. 

This is an opportunity to diversify and give customers freedom of choice on how they buy from us, including to make the purchasing process as simple and user-friendly as possible.

Honda NZ is excited to be taking new steps to support our customers in this way.

Autofile: How much has Covid-19 influenced the decision to make these changes?

Sonoda-san: The level of influence is marginal, but it has accelerated our interest to bring this step and change for the future sooner than we may have done otherwise.

But we have thought through this change carefully and taken our time in terms of the overall approach, including to sit down in person with each of our agents about how we plan to do this and to set out what this means for them in terms of the three new store concepts.

Autofile: How will the new type of stores affect your 17 independent dealers?

Sonoda-san: We have sat down with all our independent dealer agents to brief them on the changes, including what this means for them and us. 

This is an ongoing process and we will be in a better position to share more detail in the coming months – please bear with us. 

Any change of this nature will always pose a disruption to our agents, which is why we are continuing to talk with them about this, including the three store options we’re looking to introduce.

Three store options will be introduced whereby both branch and independent agents will operate, so a “one-team” strategy as in the current situation to attend to our loyal fans.

The immediate changes relate to our entire network, including branches. This will affect all agents and branches as we transition into the new concept stores across our national network. 

Further detail in relation to how this will take shape will be worked through over coming months.  

The purpose is to bring Honda NZ closer to our customers and give them greater purchasing experiences, which we strongly believe is a positive and exciting development. 

This is an exciting opportunity to shape our future in the interests of customers.

Autofile: What feedback have you had from independent agents?

Sonoda-san: There has been a general understanding of the rationale. I think there’s already an awareness of other brands making changes, which are not altogether different.

Importantly, we are continuing to talk through the changes and next steps with our agents. 

Our relationships with them are really important to us and as they have served the Honda brand very well over many years, for which we are very grateful. We will be able to share more once ongoing talks have been wrapped up.

Autofile: Can you tell us more about how the e-commerce platform will work?

Sonoda-san: This is a great question and we will be providing a full briefing on the platform closer to its launch in May. Thanks for your patience on this development.

Autofile: Will these changes impact on the size of Honda NZ’s network? 

Sonoda-san: The size of the network should largely remain the same. We are still working through the details with each of the agents and will be able to provide an update in coming months.

Autofile: Some people may draw parallels with Toyota NZ’s Drive Happy. What are the differences? 

Sonoda-san: Honda NZ introduced our “price promise” coming up now 21 years ago in May 2000. This has been a key component for our loyal Honda fan base with more than loyalty rate.

There are many differences to the Toyota model now coming up two years established.

The major difference is that our “price promise” is one fair price for all customers. Our promise is: “Whoever you are, wherever you are or whenever you buy, you will always pay the same best price for your new Honda. We promise.”

Autofile: How are the changes going to help Honda NZ increase sales and lift its market share?

Sonoda-san: Only time will tell, but we have a proud history of innovation and doing what we believe is right by our customers. 

This change is in tune with that and we believe customers like having greater control and flexibility backed by great service and hospitality, including exciting new models to introduce to the market, so let’s see.”

Autofile: What are Honda’s ambitions for the Kiwi market moving forward?

Sonoda-san: To continue to challenge convention through fairness, transparency and hospitality. Therefore, to be seen by our loyal fans as a company they would like to continually see us exist.

This would eventually increase our loyal fan base through the core values of our “price promise”.