Honda Rover : Crafting an Alliance

Honda shared management and production methods. As part of information exchange, a joint development plan was started. Rover implements and improves access to component carry-over systems, strategic supplier relationships, and JIT (timely) system vendors. Workers have more authority and more facilities. The management cost of the vagrant decreased by 9% and the cost of the assembly line scrap was reduced by 50%. Quality improves, defects decrease by 10 to 90%. Response to order time has been shortened from several months to two weeks.

In the Honda Alliance, Rover learned about Honda's lean production technology using advanced automation (robot manufacturing method) to ensure high efficiency while minimizing the resources required for production. Through Japan's flexible manufacturing system, the product lifecycle of Rover's new model will be shortened. In addition, improving Japan's comprehensive quality control attitude towards the manufacturing industry makes Rover a reputation as a high-quality performer often.

The main problem with Rover is its poor reputation for quality. There is no doubt that Rover's management has successfully executed the "joint venture with Honda" strategy. Coincidentally, while Honda tried to enter the European market, they had something to each other as financial resources were scarce. This partnership is said to have been successful, and many manufacturers are impressed with the results of Rover and Honda. Assuming that strategic alliances are not formed and they function separately, they may not be able to survive the UK and European markets, especially the rovers. Due to joint business, development and parts procurement, Rover and Honda do not compete with major automakers such as Volkswagen, Ford, and General Motors

The partnership between Rover and Honda is to use each other while maintaining strategic focus and independence. Honda and Rover are about the same in terms of sales, both of which have ambitions of growth - they all have the characteristic that others are pursuing. In the case of Rover, they had problems with quality assurance and management mistakes. Because Rover can absorb Japanese quality culture while using Honda's world famous management system / team, Honda matches perfectly. On the other hand, demand for Honda's Rover is more practical, as it requires Rover's manufacturing facility. (Rover is responsible for its inability to be very inefficient.) Honda also needs to utilize the knowledge of the Rover Europe market and to enter the European network of suppliers and contractors.