Honda Restructures European Operations

Honda Motor Co. is overhauling its ailing European operations in hopes of gaining sustainable profitability in the region, The Nikkei says.

The Tokyo-based newspaper, which cites no sources, says Honda is moving most of its European headquarters staff back to Japan. To bolster its meager product lineup in Europe, the company will import its new HR-V small crossover from Mexico beginning this summer.

Honda also will introduce a redesigned version of its Jazz minicar this summer. The car will be imported from Japan rather than made at Honda's factory in Swindon, England.

Honda said a year ago it expected no improvement in demand "for the next couple of years" for the Civic small sedans, CR-V small crossovers and Jazz superminis it makes at Swindon. To help increase output, Honda plans to export 30,000-40,000 Civic hatchbacks to the U.S., according to The Nikkei.

The newspaper notes that Honda has lost money in Europe in three of the past four fiscal years. Last year the company's sales in the region fell 5% to 133,000 units.