The Story

Plus, August.

In this morning’s edition, we’re looking at Honda’s latest cost-cutting measures, and August’s auto sales. We’ll also look at Tesla’s latest FSD push in the EU, and more Chinese EVs in Canada.

TOKYO, Sept 2 (Reuters) – Japan’s Honda aims to cut more than $9 billion in ​costs over the next four years and has instructed suppliers to drastically reduce their prices, according to internal documents and one person familiar with ‌the matter.

The maker of the CR-V sport-utility vehicle now aims to save 1.5 trillion yen ($9.4 billion) by 2030, according to the documents and the person. Honda managers briefed suppliers on the plan and ​said it would also look to source more components from Chinese suppliers, one of the people said. Each supplier was later presented with company-specific targets to cut costs, the people said.

Honda is ‌aiming to ⁠reduce costs by 30% in three key parts categories: pressed and forged components, electrical parts and parts related to software-defined vehicles (SDVs), according to the documents. Such a reduction would allow Japanese suppliers to better compete with Chinese rivals, the documents said.

U.S. Sales edged up at Honda Motor Co., Kia and Subaru but fell at Toyota Motor Corp., Hyundai and Mazda in August, previewing what is expected to be a weaker month across the industry.

Why It Matters

The maker of the CR-V sport-utility vehicle now aims to save 1.5 trillion yen ($9.4 billion) by 2030, according to the documents and the person.

CarMotion Daily’s Take

TOKYO, Sept 2 (Reuters) – Japan’s Honda aims to cut more than $9 billion in ​costs over the next four years and has instructed suppliers to drastically reduce their prices, according to internal documents and one person familiar with ‌the matter. Watch this space over the coming weeks. Markets rarely reward single announcements — execution over the next two to four quarters is what closes the gap between press release and customer. How this lands depends less on the announcement itself and more on the rollout, dealer support, and after-sales story behind it. Specifics on pricing, availability, and regional rollout will tell us whether this moves from headline to delivery. Independent verification and follow-up coverage from rival outlets tend to firm up the picture within days.

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