Categories: Auto News

They didn’t pull it off: Honda abandoned the production of electric cars amid multibillion-dollar losses

The company has recorded operating losses for four quarters in a row, which forced its management to take unprecedented measures.

Write-downs related to the development of electric vehicles reached 267.1 billion yen ($1.71 billion) over the nine months. According to industry publications, losses could amount to about 700 billion yen ($4.48 billion) by the end of the fiscal year.

The company’s executive vice president, Noriya Kaihara, acknowledged the need for a “fundamental strategy overhaul to restore competitiveness.” Honda is winding down a number of promising electric models and leaving a partnership with General Motors – slow sales of the Acura ZDX and Honda Prologue, built on the Ultium platform, forced the company to reduce purchases of necessary components from GM and pay compensation to it.

Back in 2024, Honda set a goal of selling 2 million electric vehicles annually by 2030. Those plans will now be “significantly revised” with a new roadmap due later this year. However, the start of production of electric Acura RSX and Honda 0 Series SUV is still expected in 2026.

It was previously reported that UAZ is testing new diesel models in extreme conditions.

Recent Posts

Big difference: Motor compared prices of Geely Monjaro in Russia and Belarus

The editors of Motor magazine, having studied the official price lists, found out that Belarusian…

SHOT: 10 Chinese auto brands are ready to leave Russia due to competition

We are talking about Kaiyi, BAIC, SWM, Dongfeng, Jetta, Bestune, Wey, Rox, Oting and VGV.“Since…

Auto expert Kogan: new Chinese brands are not entering the Russian market due to increased recycling fees

There are no formal bans on the entry of new Chinese auto brands into the…

The first new generation Jawa motorcycle is certified in Russia

The modern Jawa 350 CL Bobber is built on the basis of the Pérák model,…

If the car dealership imposed insurance on the buyer, it can be returned

Similar situations happen quite often when unscrupulous managers of car dealerships slip drivers financial products…

The new Toyota Highlander debuted as a full-fledged electric car

The company noted that starting from 2027, the model will be produced exclusively with an…