Honda Motor Co. will cut more than $9 billion in costs over the next four years. The 1.5 trillion yen savings plan is targeted for completion by 2030. This strategy aims to offset electric vehicle losses and counter intense competition from Chinese automakers.
The automaker is requesting significant price reductions from its current suppliers. Honda targets a 30% cost reduction for stamped, forged, and electrical components. The plan also covers parts for software-defined vehicles.
Honda will increase component sourcing from Chinese suppliers to improve its market competitiveness.