US EditionPublished • loading... • Updated
Facing Heavy Losses, Honda Cancels Its Three US-Made Electric Vehicles
Honda will record $16 billion in losses due to canceled US EV projects and shift focus to hybrids amid weak North American demand and rising competition, company said.
- In a Thursday statement, Honda said it will cancel U.S. EV launches and record nearly $16 billion in expenses due to a strategy shift, citing weak demand and policy effects.
- Honda cited weak demand and U.S. policy shifts, including the end of the federal clean vehicle tax credit, as reasons for its reassessment.
- Accounting filings show that Honda said the charges stem from impairment and write-off losses on assets intended for production and forecast a net loss of 420 billion–690 billion yen for the year to end-March.
- Honda said it will pivot by boosting hybrid offerings in the U.S. and approving future EVs only if profitable, while senior executives at Honda will take 20–30 percent pay cuts for three months.
- Honda said intensified competition from newer EV makers leveraging SDV and ADAS has reduced its competitiveness in China, risking write-downs of investments there.
Insights by Ground AI
46 Articles
46 Articles
The Japanese manufacturer cuts three electric models for the US market and its goal of producing only electric cars by 2040. Value adjustments cost billions.
·Zürich, Switzerland
Read Full Article
Electric vehicle rethink to cost Honda almost US$16 billion
TOKYO -- Japan's Honda said Thursday it expected to book nearly US$16 billion in expenses and losses related to a major reorientation of its electric vehicle (EV) strategy, blaming US policy changes and tariffs.
·Toronto, Canada
Read Full ArticleCoverage Details
Total News Sources46
Leaning Left5Leaning Right9Center13Last UpdatedBias Distribution48% Center
Bias Distribution
- 48% of the sources are Center
48% Center
L 19%
C 48%
R 33%
Factuality
To view factuality data please Upgrade to Premium
