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Honda Cancels Three U.S.-Bound EVs, Projects Up to ¥2.5 Trillion Hit

Citing U.S. policy changes, the company pivots near term to hybrids.

Overview

  • Honda scrapped the Honda 0 SUV, Honda 0 Saloon, and Acura RSX that had been slated for North American launch.
  • All three models were to be built at Honda’s EV Motor Hub in Marysville, Ohio, with timelines that had targeted 2026 production.
  • The company now expects up to ¥2.5 trillion (about $15.7 billion) in expenses and losses from impairments, write-offs, and related costs tied to its EV reassessment.
  • Honda revised guidance to a net loss of ¥420 billion to ¥690 billion for the fiscal year ending March, reversing an earlier profit outlook of roughly ¥300 billion.
  • Executives announced temporary pay cuts as Honda signals a shift toward strengthening hybrids, flags potential China investment write-downs, and prepares a broader strategy update in May 2026.