New CEO of Honda Motor Co Ltd (ADR) (NYSE:HMC) Guides The Company Towards a Technology Oriented Strategy

New CEO of Honda Motor Co Ltd (ADR) (NYSE:HMC),Takahiro Hachigo is taking an aggressive stance towards the company’s future by shifting the firm’s focus towards technology.

During his first conferences as the automotive company’s head, he made it clear that he plans to make sure that employees have enough time and resources to assemble competitive products. His mission is to bring the competition to the company’s greatest rivals especially in the home market. Honda is currently ranked number three after Nissan Motor Co Ltd (ADR) (OTCMKTS:NSANY) and Toyota Motor Corp (ADR) (NYSE:TM).

Honda has been experiencing low sales and a decline in the quality of their products for quite some time. The company engineers have also complained on numerous occasions that they were being overworked. During a meeting at the company’s headquarters in Tokyo on Monday, Mr. Hachigo declared his plan to shift focus from expanded sales volumes to development of products that reflect the company’s values. He clearly stated that he wants the team in charge of new developments to take more time so that they can come up with better products.

Mr. Hachigo took over the leadership position last month just at a time when the firm experiences hardships. The firm has for a long time been unable to size up to the rivals especially in terms of finances. The new CEO wants to focus on technological innovations and a youthful brand image. He has also made some new changes that have been receiving a lot of criticism. For example, Mr. Hachigo dropped the sales target for 2017 to a lower value. The target was set by his predecessor, Takanobu Ito, who had been the company’s CEO since 2009. He had set Honda’s annual vehicle sales to six million by the end of 2017.

Hachigo feels that pushing the engineers to achieve targets in a shorter time frame than required might be the reason why the vehicles manufactured fail to achieve the expected standards.

Brown Terrel

Brown Terrel

Terrel is US Markets Daily's business news reporter. She joined US Markets Daily after five years as a print reporter.