Honda Posts First Ever Annual Loss After Pullback From E.V.s
The New York Times • • general
Key Points:
- Honda Motor reported its first annual loss since going public in 1957, with a net loss of $2.7 billion for the fiscal year ending March 31, largely due to over $9 billion in restructuring charges related to scaling back its electric vehicle (EV) strategy.
- The loss highlights challenges faced by Honda and other automakers as demand for EVs cools, despite significant investments aimed at competing with companies like Tesla and BYD.
- Honda had committed to making its entire lineup electric or hydrogen-powered by 2040, investing heavily in EV development through partnerships with General Motors and Sony, but consumer hesitancy and reduced federal subsidies have hindered sales growth.
- EV sales in the U.S. declined by about 4% in 2025, ending years of rapid growth, and prompting Honda to cancel three major EV models planned for North America, including projects with GM and Sony.
- The downturn in EV demand has also impacted other American automakers, with Ford reporting significant losses in its EV division and expecting continued deficits in the near term.