American Honda Motor Co., Inc. - SAP Innovation Awards 2025

Finalist in People Experience category: American Honda streamlined its HR operations by implementing SAP SuccessFactors HCM, consolidating three HR systems, five timekeeping systems, and two payroll functions into a unified platform. This integration provided a centralized view of associate skills, enhanced data-based workforce planning, and automated processes across the company. The simplification supports American Honda's transition to EV production and its goal of carbon neutrality by improving talent development and operational efficiency. EntryID#5342 Download the Document

PUBLICEntry Pitch DeckAmerican Honda Motor Company Inc.Rich RichardsonTim GrimmingerAutomotiveBuilding a future-ready workforce with aunified, cloud-based HR environment
COMPANY NAME:HEADQUARTERS:INDUSTRY:WEBSITE:NUMBER OF EMPLOYEES:Company information2American Honda Motor Company Inc.Torrance, CaliforniaAutomotivewww.honda.com30,000Founded in 1959, American Honda Motor Company Inc. is the NorthAmerican subsidiary of Honda Motor Company Ltd., the world’s largestinternal combustion engine maker. Powered by 30,000 associates,Honda’s U.S. plants manufacture more than two-thirds of the Honda andAcura vehicles sold in America and export U.S.-made automobiles acrossAsia, Latin America, Europe, and the Middle East.With a vision for preserving the environment and improving people’s lives,Honda has shifted its focus to reducing its carbon footprint by 2050, whichincludes moving to an all-electric lineup. To realize this vision, thecompany relies on AI and a unified, cloud-based HR environment to builda future-ready workforce, enhance associate skills and experiences, andimprove efficiencies company-wide.PUBLIC
CHALLENGE: SOLUTION: OUTCOME:Building a future-ready workforce3of associates surveyed within the pilot arehighly satisfied with AI-based innovations.of associates surveyed within the pilotidentified “efficiency” as the primary benefit.associates have access to a single sourceof up-to-date data.>80%American Honda Motor Company Inc.>90% 30,000To support environmental sustainability and enablea cleaner, healthier world for future generations,American Honda set a goal to achieve carbonneutrality by 2050. To reach this goal, it needed totransform its business operations company-wideshifting from producing 14 million internalcombustion engines a year to an all-electric lineupwhile evolving from a hardware-defined company toa software-defined company. With a fragmentedtechnology landscape and multiple HR systems,American Honda lacked the efficiencies and skillsneeded to streamline its operations and build afuture-ready workforce.American Honda implemented SAP SuccessFactorsHCM, moving from three separate core HR systems,five timekeeping systems, and two payroll functionsto a unified, cloud-based HR environment. Toprovide smooth access to HR information andopportunities for upskilling, the company deployed asuite of SAP SuccessFactors solutions, includingSAP SuccessFactors Recruiting, SAP SuccessFactorsOnboarding, SAP SuccessFactors EmployeeCentral, SAP SuccessFactors Employee CentralPayroll, SAP SuccessFactors Performance & Goals,SAP SuccessFactors Compensation, andSAP SuccessFactors Succession & Development.By moving to SAP SuccessFactors solutions,American Honda is streamlining HR operations,eliminating redundancies, and providing a betterassociate experience. Access to a single source ofdata will help associates identify skills and talentgapsand provide upskilling and reskilling to meetelectric vehicle (EV) production demands. Withbusiness AI capabilities enabled through the Joulecopilot, American Honda is automating tasks soassociates can focus more on sustainability andelectrification. To further explore AI capabilities, thecompany formed an internal council for responsibleAI and is piloting four use cases to learn how AI canaccelerate its vision for a future-ready workforce.PUBLIC
4Business AI capabilities inSAP SuccessFactors solutions empower us to bea better company, automotive producer, andmobility leader. The solutions give our associatesthe tools to gain efficiencies, the opportunity toupskill and reskill as needed, and the freedom tofocus on being more creative, creating aninterconnected environment where they canperform at their best.Tim Grimminger, HR Data and Technology Manager,American Honda Motor Company Inc.PUBLIC
GLOBAL CHALLENGESChallengesBUSINESS CHALLENGESPUBLIC 5Environmental changes, from extreme weather to air pollution, aredriven in part by industrial emissions produced during automobilemanufacturing and fossil fuels burned by gas-powered cars.Carbon neutrality is crucial to reducing environmental damage andensuring long-term economic stability.To mitigate the negative impact on the environment, automotivemanufacturers are investing in electric vehicles, renewable energy,and zero-carbon production methods to meet environmental goals.This shift alone is creating even more challenges for automotivemanufacturers like American Honda, such as training associates onEV production, keeping up with the latest technologies, andautomating processes to increase efficiencies.Honda, known as the world’s largest internal combustion enginemaker, is committed to achieving carbon neutrality and becominga leading battery electric vehicle company.To enable this monumental transition, the company needed toadopt new technologies, new systems, and new manufacturingtechniques.While its associates were experts in the company’s standardmanufacturing process, they weren’t as knowledgeable about EVproduction or the technologies that support it. American Hondaneeded to upskill and reskill associates to meet EV productiondemands while freeing up their time to focus on carbon neutralitythrough innovation, electrification, and sustainability initiatives.
PROJECT OBJECTIVES WHY SAPObjectives6An SAP customer since 2021, American Honda was looking forflexible, adaptable software that would provide a single source oftruth and automate time-consuming tasks.The SAP SuccessFactors HCM suite offers a unified, cloud-basedHR environment, along with solutions for payroll, recruiting,onboarding, and more, which was exactly what American Hondaneeded to realize its vision.Business AI capabilities in SAP SuccessFactors solutions throughthe Joule copilot support AI-assisted user experiences that helppeople do their jobs better by making data-driven decisions andreducing inefficiencies.With multiple core HR systems, timekeeping systems, and payrollfunctions, American Honda set out to consolidate its fragmentedHR technology landscape. The company hoped that a unified,cloud-based HR environment would enable it to: Empower HR to make data-driven decisions that supportworkforce planning and talent development Use a skills-based approach to identify current associate skills,future needs, and talent gaps and provide efficient upskilling andreskilling opportunities across business units to meet EVproduction demands Automate manual, repetitive tasks to free associates to focusmore on innovation and growth Implement strong ethical and data privacy standards for AI usageacross the businessPUBLIC