THE ASAHI SHIMBUN
January 21, 2025 at 16:57 JST
Honda Motor Co. Executive Vice President Noriya Kaihara speaks in an interview with The Asahi Shimbun in Tokyo’s Minato Ward on Jan. 17. (Daisuke Matsuoka)
Honda Motor Co. is eliminating the mandatory retirement age for highly skilled and technical employees and the “seniority system” for executives in a personnel system reform, according to a top Honda executive.
The removal of the seniority system will begin in June, when the automaker will comprehensively institute a merit system, Executive Vice President Noriya Kaihara told The Asahi Shimbun in an interview on Jan. 17.
The company will also raise the salary level of executives, increasing annual salaries by 2 million to 3 million yen ($12,850 to $19,270) at the department manager level. The aim is to attract skilled personnel in new fields such as artificial intelligence and software, as cars become more electrified and intelligent.
“Being able to do all key technologies by ourselves is the key to winning in the EV market and becoming increasingly competitive,” Kaihara said.
The company will also begin abolishing the mandatory retirement age for some employees in June, which is currently between 60 and 65. Under the new system, some employees in highly skilled or technical positions can work past 65.
Although the number of gasoline-powered vehicles is expected to decline due to the increase in EVs and other vehicles, he believes it is essential to pass on important technologies that have been cultivated over the years, as well as focus on new fields.
“Gasoline-powered vehicles will not disappear completely. There are some technologies that should be retained,” Kaihara said.
Honda and Nissan Motor Co. have been discussing a business integration plan in which both companies will operate under the umbrella of a holding company that the companies will establish.
Kaihara emphasized that the personnel system reform will not be affected by the integration talks, saying, “Regardless of the business integration, Honda has no intention of changing its current approach in personnel systems.”
(This article was written by Akihiro Nishiyama and Daisuke Matsuoka.)
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