Overview
- Honda halted development and North American launches of the Honda 0 SUV, Honda 0 Saloon and the Acura RSX, and canceled planned production in Ohio.
- The company recorded impairments of ¥820 billion to ¥1.12 trillion and said total realignment costs could reach ¥2.5 trillion, roughly $15.7 billion.
- Honda now projects an annual loss of up to ¥570 billion for the year ending March 31, 2026, reversing earlier profit guidance.
- Executives cited weakening U.S. EV demand following the end of the $7,500 federal tax credit and looser emissions rules, along with eroding competitiveness versus Chinese EV makers.
- The pivot shifts resources to next‑generation hybrids and expansion in India, with a detailed mid‑ to long‑term strategy update slated for May.