Problems Faced by Honda Company
1. Lack of Supply of Resources/Supply Chain Challenges:
Honda depends on parts and materials from countries like Japan, Thailand, China and Malaysia.
Natural disasters, such as earthquakes and floods, have damaged factories and stopped
production in the past.
Today, Honda is also affected by the global shortage of semiconductors, which slows down the
production of cars and bikes. These problems reduce Honda's ability to deliver products on time,
giving competitors an advantage.
Impact: Honda's production volume fell by 6% in 2023 due to shortages.
2. Budget Constraints
In 2024, Honda faced supply chain disruptions due to both internal and external factors,
including global crises and efforts to achieve sustainability goals
The company has implemented systems to manage carbon neutrality across its supply chain,
aiming for significant CO2 reductions by 2030. These initiatives required extensive collaboration
with suppliers worldwide and investments in resource efficiency.
1. Strong Competition: Small companies like Tesla and BYD are making affordable
electric vehicles, while big companies like Toyota and Hyundai are improving their
efficiency. This makes it harder for Honda to compete.
2. Natural Disasters: Frequent natural disasters in countries where Honda has factories
increase costs for repairs and reduce profits.
Honda has manufacturing facilities in Japan, Thailand, China and Malaysia. These
countries,including others, are often subject to natural disasters that disrupt
manufacturing in the facilities and decrease Honda’s production volumes
3. High Costs for Innovation: Honda is spending a lot of money on new technology, like
electric and hybrid vehicles. But the budget is not enough to compete with companies
that are moving faster.
Actions: Partnered with suppliers to reduce CO2 emissions by 40% in 2024.
Impact: Strains operating budgets, slowing innovation
3. Strong Market Competition
Honda faces tough competition from brands like Toyota, BMW, Mercedes, Nissanand Tesla.
Toyota, for example, is the leader in hybrid cars, even though Honda invented hybrid technology
first. Tesla is dominating the electric vehicle market because it focuses on innovation and
modern design. Honda’s slower approach to new technology has made it harder to keep up with
these companies.
Conclusion: Honda is losing its market position because of strong competition. Toyota has taken
the lead in hybrid cars, even though Honda introduced hybrid technology first. Companies like
Tesla are leading in electric vehicles with better designs and modern features. At the same time,
brands like BMW and Mercedes are focusing on luxury cars, attracting high-end customers.
Honda’s slower adoption of new technology makes it harder to compete in these markets.
To improve, Honda needs to invest more in electric vehicles and create better marketing
strategies to show its strengths.
References:
1. Honda Annual Report 2023.
2. Global Semiconductor Shortage Impact Reports (2023).
3. Industry Analysis on Electric Vehicle Trends (2024).
Recent issues Honda faced related to product recalls: ( Ví dụ vài trường hợp thực tế)
1. Seat Belt Recall (2023): Honda recalled approximately 1.2 million vehicles in the U.S.
due to a defect in the front seat belt buckle release buttons, which could fail to latch
securely. This issue potentially increased the risk of injury in crashes, affecting models
like the Honda Accord, CR-V, Odysseyand Acura RDX (Source: Apple News, Ground
News)
2. Engine Concerns (2024): Honda also faced recalls for several models, including the
Pilot, Ridgeline, Odysseyand Acura MDX, due to concerns about potential engine
stalling or power loss. These issues were linked to manufacturing defects that disrupted
vehicle performance( Source: Apple News)
These problems reflect ongoing challenges Honda faces in maintaining quality control and
addressing safety concerns
Recalls can weaken consumer trust in Honda’s brand, giving competitors (e.g., Toyota or
Tesla) an advantage
