Honda Hits Brakes On EV Rollout Amid Rising Losses
fliptop writes:
Honda is deepening its retreat from an aggressive electric vehicle rollout, canceling three U.S.-bound EVs and warning that the shifting market could result in major financial losses as it pivots toward hybrids:
The automaker recently announced it will halt development and launch plans for the 0 Series SUV, 0 Series Saloon and the Acura RSX. Those models had been slated for U.S. production as early as this year following factory retooling tied to Honda's next-generation EV strategy.
Honda said the decision reflects a rapidly changing business environment, including slower EV demand, tariff pressures and weaker-than-expected product performance in key markets.
Honda determined that starting production and sales of these three models in the current business environment where the demand for EVs is declining significantly would likely result in further losses over the long term," the company said in a statement.
The financial impact is substantial. Honda said total losses tied to the move could reach as much as $15.8 billion. That includes operating expenses projected between roughly $5.2 billion and $7.1 billion in the current fiscal year, reversing what had been an operating profit forecast just one month ago into an expected operating loss.
[...] Honda's challenges extend beyond North America. The automaker acknowledged it has fallen behind competitors in China, particularly in EV cost competitiveness and in-vehicle software. Sales in China dropped sharply last year, further weighing on overall performance.
Previously:
- Honda Will Build a CR-V-Based Fuel Cell EV in Ohio in 2024
- Honda and LG are Investing $3.5 Billion in New Ohio Battery Factory
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