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Honda Posts $2.7 B Loss, Halts Major EV Plans

5/14/2026

Summary

Honda Halts EVs

Honda Motor Co. posted a ¥414.3 billion operating loss and a $2.7 billion net loss for FY ending March 31 2026.
EV restructuring cost over $9 billion, creating ¥1.45 trillion writedowns and ¥124 billion equity losses.
Honda cancelled the Honda 0 SUV, Honda 0 Saloon and Acura RSX EVs and suspended its $11 billion Canada EV and battery project.
Honda dropped its 20% EV sales goal for 2030, pledged ¥800 billion to shareholders, kept a 70-yen dividend and saw shares rise 3.8%.

Summary

Honda Sources China

Honda will source electric-vehicle parts from Chinese suppliers to reduce costs after posting a loss.
The company said the September 2025 end of the $7,500 U.S. EV tax credit and a tariff cut from 25% to 15% hurt U.S. sales.
CEO Toshihiro Mibe said Honda will keep researching future technologies, including EV batteries.
Honda displayed two hybrid prototypes—a sedan and an SUV—for U.S. buyers as it scales back pure-EV development.

Summary

Honda CEO Stays

At a press conference in Tokyo on Thursday, May 14 2026, CEO Toshihiro Mibe announced he will not step down, saying he must lead Honda’s revival plan.
He reaffirmed Honda’s commitment to carbon neutrality and electric-vehicle battery research.
Honda projected FY2027 profit of 260 billion yen ($1.7 billion).
The motorcycle division sold 22.1 million units, maintaining market dominance in India.
Analysts said the turnaround plan also includes expanding hybrid and conventional gasoline models alongside EVs.

Summary

Honda Forecasts Loss

Honda forecasts a 313 billion yen operating-profit loss because material prices have risen amid the Middle East conflict.
The company will raise motorcycle output in India to a record 22.8 million units next year.
Strong motorcycle sales in Brazil delivered the division’s highest operating profit, softening the overall loss.
Honda’s cost-cut plan adds cheaper Chinese components to manage geopolitical supply risks.
The motorcycle unit will keep generating profit to offset car-segment losses.

History

Historical Context

After years of falling U.S. car sales, the 2008-09 crisis forced General Motors into Chapter 11 and triggered an $85 billion U.S. Treasury bailout that kept the company operating. In FY2026, Honda reported a ¥414.3 billion operating loss, prompting it to scrap EV projects and source cheaper Chinese parts. Both cases show how large financial interventions can postpone but not resolve deep industry shifts.

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Honda Halts EVs

Honda Motor Co. posted a ¥414.3 billion operating loss and a $2.7 billion net loss for FY ending March 31 2026.
EV restructuring cost over $9 billion, creating ¥1.45 trillion writedowns and ¥124 billion equity losses.
Honda cancelled the Honda 0 SUV, Honda 0 Saloon and Acura RSX EVs and suspended its $11 billion Canada EV and battery project.
Honda dropped its 20% EV sales goal for 2030, pledged ¥800 billion to shareholders, kept a 70-yen dividend and saw shares rise 3.8%.

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