Most companies make adjustments to the org chart when things aren’t going according to plan. Honda apparently looked at a fiscal year where its powersports and marine divisions exceeded their sales targets and decided it was The right time to start moving departments instead. It’s a bit like celebrating winning a race by rebuilding the pit garage. Strange at first glance, but there is actually some logic behind it.
American Honda has announced a major restructuring of its Power Sports & Products (PS&P) center, bringing its powersports, power equipment and marine businesses under a new integrated operating structure. Before anyone starts wondering whether this means a surprise motorcycle launch or a new platform, this is all happening behind the scenes. Bikes are not changing today. However, the people making decisions about them are finding a different playbook.
The biggest change is that each of Honda’s three businesses is now run like its own company. Powersports, marine and power equipment will each have dedicated sales, service and marketing teams rather than relying on a more centralized structure. Honda says this should strengthen product strategy, improve sales capabilities and accelerate future growth. That, to me, looks like a complete extension.
Photo by: Honda
This may all sound like classic corporate bingo card stuff, but it solves a real problem. Motorcycles, generators and outboard engines don’t always run at the same speed or serve the same types of customers. Giving each division more independence means that the people selling motorcycles can focus on motorcycles rather than competing internally for attention. Meanwhile, Sales Operations remains a shared support group that keeps everything together behind the scenes.
Interestingly, Honda is centralizing one area instead of dividing it up. All research and development activities in powersports, marine and power equipment are now consolidated into a single development division. This can make it much easier to share technology across product lines, reduce duplicate engineering work, and get new ideas from concept to production without every department reinventing the wheel.
The motorcycle, UTV, and ATV side also gets a mission statement that’s worth paying attention to. Honda says the powersports division will focus on growing its core business while pursuing future mobility initiatives. This is intentionally broad, but gives an indication of where the company sees the industry headed. Electric motorcycles, connected technology, software integration and other mobility projects can all fall under that umbrella. It’s less about any one specific product and more about making sure the motorcycle business is ready for whatever comes next.
Photo by: Honda
The Marines also return after briefly operating as a standalone division. Rather than remain separate, it will once again sit alongside powersports and power equipment while expanding dealer relationships, strengthening partnerships with boat builders and broadening its product lineup. Honda apparently decided that cooperation would yield more benefits than keeping everyone in separate lanes.
The new organization is led by John Stevens, who has been promoted to Vice President of PS&P Business and Sales after 25 years with Honda. Jeremy McGuire takes over as Director of Sales Operations, while Bill Savino, Barry Dlugaz and Josh Matthews will lead the Powersports, Power Equipment and Marine divisions, respectively. Honda also created a business planning division to improve coordination across the business while consolidating all PS&P R&D functions into a new development division.
Photo by: Honda
If you’re wondering if any of this has changed what’s on the showroom floor at your local Honda dealer, the answer is no. Not yet anyway. Organizational changes rarely produce results overnight, but they often determine how quickly new products come to market several years later. Honda says the goal is to build a more self-reliant North American operation that can respond faster to customers while accelerating innovation.
Considering this announcement came on the heels of a fiscal year that exceeded expectations, Honda isn’t trying to fix a struggling business. It is trying to move a successful task forward rapidly. Corporate restructurings don’t usually get motorcycle enthusiasts excited, but sometimes the most important product announcements start with people changing desks instead of engineers changing engines.
