US EditionOff the news: Honda’s EV strategy for U.S. short-circuits | Honolulu Star-Advertiser
Honda's $15.7 billion restructuring loss follows cancellation of three U.S. EV models amid federal EV tax credit reversal and weak consumer demand, impacting its Ohio EV facility.
- On Thursday, Honda disclosed a $15.7 billion writedown of its EV business and canceled three battery models at its Ohio EV facility.
- Following the Senate's July vote reversing federal EV credits, Reuters attributed Honda's losses to sharply fallen EV demand as U.S. consumers prefer hybrids and face competition from lower-cost Chinese EV makers.
- Honda said cash outflows tied to the writedowns will largely reflect payments to compensate suppliers, with battery-powered cars at 2.5% of last year's global sales and 17,000 sold in China.
- Honda will pivot its U.S. focus to hybrid vehicles and plans to outline a mid- to long-term strategy at a May press conference, following its first annual loss in nearly 70 years.
- Despite Honda's pullback, EV sales in the United States hit record highs in 2025, and GM and Ford executives said EVs remain the future, despite multi-billion-dollar losses after policy shifts.
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11 Articles
Honda cancels 3 planned EV models for US
Honda announced a $15.7 billion writedown of its electric vehicle (EV) business last week as the company shifts its U.S. strategy to account for weak consumer demand for EVs.The second-largest automaker in Japan said Thursday that it will restructure its EV business and cancel three planned battery-powered EV models that were going to be built and sold in the U.S. market.Demand for EVs has pulled back in recent years as consumers have shown a pr…
Off the news: Honda’s EV strategy for U.S. short-circuits | Honolulu Star-Advertiser
Add Honda to the list of major car manufacturers to scrap plans for electric vehicles, unfortunately. Honda last week said it would stop plans for three electric models it was to produce in the U.S., amid recording its first annual loss since its stock was first publicly listed in 1957.
Honda reports $15 billion in losses amid market shift
Honda reported its first annual loss in seven decades, according to Reuters, citing a massive $15.7 billion in unanticipated "restructuring costs." What's happening? On Thursday, Honda disclosed anticipated losses of 2.5 trillion yen along with an abrupt shift in manufacturing focus. Three new Honda electric vehicles that were "months from starting production" at the company's Ohio EV facility were scrapped, Engadget reported. As Reuters noted, …
Honda shuts down the development and production of three of its future electric vehicles planned for North America. The Japanese manufacturer anticipates a huge loss of up to 14.5 billion euros, in the face of a dull demand and a market that has become too hostile. The sanction is immediate: the company rotates and puts its hybrid models at the centre of its strategy.
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