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Honda Cancels Three U.S.-Bound EVs, Warns of Up to ¥2.5 Trillion Charge

Honda will detail a revised auto strategy in May after redirecting resources to hybrids.

Overview

  • The Honda 0 SUV, 0 Saloon and Acura RSX have been scrapped after a reassessment of the EV business environment.
  • All three models were months from production at Honda’s Marysville, Ohio EV Hub and were to debut Honda’s in-house Zero platform rather than GM’s Ultium.
  • Honda now forecasts a fiscal-year operating loss of ¥270 billion to ¥570 billion and says total restructuring and impairment costs tied to the reversal could reach ¥2.5 trillion.
  • The company cited weaker U.S. EV demand following incentive rollbacks and eased emissions rules, tariff pressures on gas and hybrid models, and stiffer competition from faster-moving Chinese EV makers.
  • Leadership will forgo portions of pay, Honda will prioritize next‑generation hybrids and regional competitiveness including India, and reporting indicates the year could mark its first annual net loss since 1957.