Honda Cancels Three US EV Models Amid $15.7 Billion Loss

Honda Motor Co., Ltd. announced it is canceling the development and launch of three electric vehicles intended for the North American market: the Honda 0 Series Saloon, the Honda 0 Series SUV, and the Acura RSX. These models were slated for production at the company's Marysville Auto Plant in Ohio. This strategic retreat is tied to a massive write-down of approximately 2.5 trillion yen ($15.7 billion) across its EV business and Chinese operations, which will result in the company's first annual net loss since its 1957 listing.

CEO Toshihiro Mibe attributed the losses to a sharp decline in EV demand and a failure to adapt strategy to changing market conditions. Key drivers include the removal of federal EV tax credits and the easing of fossil fuel regulations under President Donald Trump, as well as new U.S. tariffs affecting gasoline and hybrid models. In China, Honda struggled to compete with software-defined vehicles from rivals like BYD, which utilize shorter development cycles.

To recover profitability, Honda is pivoting resources toward next-generation hybrid vehicles and expanding its presence in India. While the company denied reports that it would discontinue the General Motors-manufactured Prologue, the broader restructuring has created uncertainty for the Afeela 1, a joint venture project with Sony Group Corporation. In response to the financial downturn, Mibe and Executive Vice President Noriya Kaihara will voluntarily forgo 30% of their monthly pay for three months. Honda plans to present a revised long-term strategy in May.