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.

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