Honda can’t seem to catch a break. After previously announcing that they plan to become an all-electric brand by 2040, the carmaker has decided to pull the plug on at least three EV models currently in development altogether.
Honda is axing the Honda Zero (0) sedan and SUV which were originally planned for assembly in a dedicated EV facility in Marysville, Ohio in the United States. It will also cancel development of the Acura RSX.
Citing the declining profitability of Honda’s automobile business due to changes in U.S. tariff policy changes as well as a decline in Honda’s competitiveness in Asia which it blames on the allocation of more resources toward EV development, the carmaker has decided to stop development of these three EVs.
Based on this decision, Honda will now write-off these three models and incur losses used for the development, production, and sale of these three EV models.
Furthermore, in the next fiscal year or later, additional expenses or losses may be incurred in connection with the reassessment of Honda’s automobile electrification strategy. Combined with the losses to be recorded in the current fiscal year, the total amount of losses is expected to be a maximum of 2.5 trillion yen.
Moving forward, Honda will reassess its resource allocations and further strengthen its hybrid models. As for regional business, in addition to its main markets, namely Japan and the U.S., Honda will enhance the model lineup and cost competitiveness in India, where market expansion is expected. In other countries in Asia as well, Honda will strive to enhance its competitiveness by introducing next-generation hybrid models and reassessing the allocation of its resources.
Honda is planning to announce details of the reestablishment of its mid- to long-term strategy for its automobile business at a press conference to be held in May this year.
So, with that said, will Honda still push for solid-state batteries?
ReplyDeleteGo woke go broke
ReplyDeleteSeems like Honda is now following the strategy of Toyota. Honda is falling behind. They also canceled their plans to build electric vehicles with GM.
ReplyDeleteGM President said they're stepping back a bit on EV but he believed that EV is the future, maybe in 5 years, the market will be ready,they didn't spent $500b if they they don't think EV is the future.
DeleteNobody really expected them to follow through with their so called EV commitment. They're just virtue signalling as progressives. Npw they're virtue signalling as pragmatists.
ReplyDeleteWay back then, I was disappointed with Honda's decision to go all out electric as EVs are unsustainable while abandoning their loyal customers and core competence in ICE and hybrid vehicles. Now Honda has realized its folly and are paying for their unwise decision to the tune of Y2.5 trillion.
ReplyDeleteMeaning they can't compete with the Chinese.
ReplyDeleteis Honda also going the Nissan route?
ReplyDeletethey probably won't hit rock bottom as deep, as they're still selling more than nissan.
DeleteImagine if that ill-conceived merger pushed through. Japan Inc. would be dealing with a bigger problem right now. This is why bureaucrats, who mostly have never held real jobs in their lives outside of government, should never meddle in corporate affairs.
DeleteHonda just can't compete with its Chinese counterparts that offer arguably just better value for money for what you're paying for and for way less. If you've seen the pricing of the recent Honda Prelude (it's Php 3M+) here in the Philippines, you would understand how they're so out of touch with the PH market nowadays (I know they have other more affordable models but still).
ReplyDeleteThey better do something quick before this gets even more out of hand.
Not just the PH market. They're getting heavily criticized in basically every market they're in for their pricing choices.
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