In the spotlight: Honda

Two years ago Ed Hummel, a bright, ambitious, eager fleet executive from Volkswagen, switched brands to become corporate operations manager at Honda.

Fleet News suggested he’d made “not the greatest career move” given Honda’s deep-rooted problems.

The company had become arguably the worst performing manufacturer in fleet, hampered by a lack of coherent strategy and a lack of decent product, not least in having no diesel offering in a predominantly diesel market.

Hummel created a new strategy full of management buzzwords and optimistic growth targets based on four key pillars: closer relationships with leasing companies, maximising time with end customers, empowering fleet dealers and creating a great ownership experience.

Then he left. He was in post for just 16 months.

The timing could hardly have been worse for Honda with a highly promising new 1.6-litre diesel launching in the Civic as part of a product roll-out targeted specifically to appeal to fleets.

However, the company barely broke stride. Lee Wheeler was quickly installed as temporary corporate operations manager, then appointed permanently, bringing with him 10 years’ experience at Honda, plus a banking pedigree from BNP Paribas.

So far this year, in a fleet sector up 3%, Honda is up an impressive 10%.

Wheeler’s priority has been to instil a clear vision of what Honda stands for in the corporate market. He eschews the ‘alternative premium’ language which heralded the launch of the Accord as “too hard to buy into”, preferring the more simplistic and plausible values of low maintenance and repair costs, high reliability and high residuals.

The final piece in the jigsaw was the low emissions engine.

It takes Honda from being firmly on the back foot to having a sector-leading product to take to market.

“Honda felt the effect of the Lehman’s shock in 2008 and pulled back its investment in R&D,” says Wheeler by way of explaining the belated appearance of a competitive diesel engine.

“Three or four years down the line we felt the effects of that decision. But now it’s coming back.”

He has set out four areas of fleet for growth: SMEs (typically sub-100 vehicles), 100-plus fleets, public sector and salary sacrifice.

The target is to be ahead of the previous three months for every quarter this year.

So far he’s on plan. Civic, CR-V and Jazz are all ahead in true fleet compared to the previous quarter.

But when carmakers are launching ever broader product lines, does it concern Wheeler that he has to rely on just three – and with no Mondeo/Insignia-rivalling family car?

“Having three models is not a concern,” he responds. “First, because it is Japanese product we are still represented on restricted badge fleets and, second, we are trying to grow our UK-based product and broaden our range with the two-wheel drive CR-V later this year and Civic Tourer.

“It gives us a solid platform from which to grow.”

In response to the matter of a gap in the range for a family car, Wheeler points to the forthcoming sub-120g/km 1.6-litre diesel CR-V and the Civic Tourer as offering compelling alternatives, not least from a tax and fuel efficiency perspective.