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Honda Scraps Three U.S.-Bound EVs, Books $15.7 Billion Charge in Strategy Pivot

A revised mid- to long-term plan will be unveiled in May.

Overview

  • The canceled models are the Honda 0 Saloon, the Honda 0 SUV, and the Acura RSX that had been slated for the U.S. market.
  • Honda recorded a roughly ¥2.5 trillion ($15.7 billion) EV-related impairment and said it expects its first annual loss in nearly 70 years.
  • The company is shifting its U.S. product focus to hybrids and will pace future EV launches with a longer, more flexible timeline.
  • Executives cited weakening EV demand, U.S. policy changes under President Donald Trump, tariff pressures, and intensifying competition from faster-moving Chinese EV makers.
  • Honda said cash outflows from the writedown will largely go to supplier compensation, and it is reorganizing development under R&D after recent resets that followed major EV investments such as the Ohio battery plant stake buyout.