HONDA Australia has today become the first OEM to introduce a factory-led agency model for its trimmed-down dealer line-up, giving customers what it says is a fully-transparent buying experience that guarantees one price for its products across Australia and for dealers, reduced operational outgoings.

The brand now has 90 Honda Centres – 30 metro and 60 in regional and rural areas – in its national network, operating under the “Honda Promise” that guarantees the same drive-away price regardless of the location.

Honda now has 47 owners of these 90 Honda Centres, a consolidation on the previous ratio of owners and outlets.

The company says it will ignore sales volumes as a barometer for success, pinning its annual unit sales of about 20,000 vehicles which it believes offers profitability for dealers and a high standard of excellence for its 200,000 customers.

Honda’s agency model has dealers – now referred to as representatives – act on behalf of Honda Australia for the sale of new vehicles to customers. Honda Australia owns all new-vehicle stock, as well as all display, test drive and service loan vehicles required in each Honda Centre.

Available new-vehicle stock is also managed by Honda Australia and housed in central locations to make it easier and quicker for customers to find the vehicle they want, rather than drive from one centre to the next to find their preferred vehicle.

Honda Australia director Stephen Collins said Honda had a belief that “buying and owning a car should be a simple, straightforward and joyful experience”.

“That’s why we’re not only fundamentally changing the way you buy a car with the Honda Price Promise, but we’re also transforming the ownership experience with our Road Ahead Guarantee,” he said.

“And that’s just for starters. It’s the new Honda way and it’s all completely ‘Designed for Joy’.

“Many businesses outside of automotive have already realised an end-to-end customer experience that is simple, trusted and enjoyable, is the key to future success.

“Brand experience is the new competitive battleground, which is why we have shifted our focus from the auto industry norm of chasing volume, to prioritising a quality customer experience.”

Mr Collins acknowledged the speed bumps in the move to an agency model when it was first hinted at some two years ago by saying that “restructuring a business is not easy”.

“Transforming a business is doubly hard, as it involves changes to everything we do,” he said.

“But our founder, Soichiro Honda, once said: ‘Instead of being afraid of the challenge and failure, be afraid of avoiding the challenge and doing nothing’.

“Our entire team has worked tirelessly over the past 15 months to create a new chapter for Honda in Australia. We’re making it simpler for customers to choose Honda and easier for our network to make that happen.”

Mr Collins also said the “revamped Honda network has been carefully considered and planned, allowing us to maintain optimum network flexibility, while ensuring it was the right size to meet customer expectations and deliver outstanding experiences for our customers”.

“We’ve also maintained Honda’s provincial and rural network, which is critical for customer convenience, warranty repairs and availability of Honda products.”

Honda Australia has allowed dealers flexibility in location and design of the showrooms and service centres, including the use of shopping centre sites.

Behind the scenes it has simplified its corporate website’s online vehicle configurator to allow easy access to vehicle information, pricing and help “build” the vehicle they are interested in purchasing.

The configurator has Honda’s six models and associated grades and variants, along with features, offers, options and accessories, all with transparent pricing.

Metallic or pearlescent paint, for example, is no longer an option but included in the vehicle price. There is also an option of three accessory packages for vehicles to make selection easier.

Customers can build their vehicle online at home or in person at a Honda Centre as well as book a test drive.

Customers will now also have access to a bespoke customer experience platform that integrates the entire customer experience lifecycle – from online activity to in-person Honda Centre visits – including vehicle information, Honda service bookings, reminders and history or personal contact details.

Honda’s Road Ahead Guarantee program aims at ownership and claims that it will offer benefits of about $2000 to customers at no extra cost. The service costs are now $125 a year and capped for five years, which Honda said would save owners about $1250 over the period.

Combined with a five-year warranty and five years of “premium” roadside assistance, Honda said the value to the owner with the new program is about $2000.

By Neil Dowling