Fleet News

Honda looks to Europe in new sales overhaul

HONDA UK's successful partnerships with contract hire companies and fleets will create a blueprint for development of divisions throughout Europe in a major overhaul of the manufacturer's sales and distribution operations. In the UK, Honda sells half its output to fleets, but has been unable to achieve the same success in Europe, particularly in Germany, a key fleet market.

The firm revealed during the Frankfurt International Motor Show that as part of a review of its operations, to be launched at the start of next month, lessons learned from selling to the fleet and contract hire market in the UK would be taken abroad. Already work has begun, with the firm's 520 German dealers being informed that existing contracts are being terminated as part of the changes.

Honda is strengthening its European operations by creating three central hubs, UK, Northern Europe, based in Germany, and Southern Europe, based in France, condensed from about 20, to make better use of resources. National sales operations will concentrate their efforts on improving customer service, while product planning operations will move closer to the marketplace, to improve understanding of customer's demands.

The European HQ, based in the UK, will be responsible for pan-European planning, while each of the three divisions will take on product planning, marketing, advertising and regional strategy, allowing for a more focused approach to customers in each market.

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