Billions Lost as Honda Reconsiders Its EV Push
Honda is on one of the roughest patches in its recent history. After years of hyping up its electrification push, the Japanese giant has slammed the brakes. The cost? A staggering ¥2.5 trillion, or about $15.7 billion, down the drain thanks to scrapped projects and investments.
This massive write-down comes after Honda’s auto division racked up over 400 billion yen ($2.55 billion) in losses in fiscal 2025 – its first operating loss since 1957. Per its official release, the blame points to changing market conditions, cooling EV demand, and the dreaded US tariffs.
But behind closed doors, some former Honda execs are convinced the trouble goes way beyond market trends.
Honda
Reuters: Former Honda Leaders Wanted Mibe to Step Down
Reuters reports that a handful of retired Honda bigwigs started holding secret meetings late last year, hashing out what they saw as leadership fumbles under CEO Toshihiro Mibe. The scoop comes from a written summary of their chats and interviews with people in the know.
These ex-execs say Mibe dropped the ball in China – the biggest car market on the planet – while betting the farm on an EV plan that fizzled. Reuters even claims that ex-CEO Nobuhiko Kawamoto sat down with Mibe in April and told him to call it quits. Mibe, for now, isn’t budging.
One big gripe: Honda’s top brass have lost touch with the company’s old-school ‘genba’ roots – getting out there and mixing it up with customers, dealers, and factory floors. The ex-leaders say management has been missing in action, especially in China, where Honda’s market share has taken a nosedive.
Honda told Reuters it had no knowledge of the discussions among retired executives and defended its management approach, saying it remains focused on improving competitiveness and controlling costs.
Larry Printz
A Costly Reset for Honda
Is all the heat on Mibe really fair? That’s up for debate. Honda’s not the only automaker to get burned by the EV hype train – Ford, GM, and Nissan have all torched billions after pumping the brakes on their own electric dreams.
Still, Honda’s mess hits different, mostly because it went all-in on its next-gen EV play. The now-axed 0 Series was meant to be the heart and soul of Honda’s electric future, packed with fresh software, AI smarts, and a brand-new platform. Even Honda’s supposed collaboration with Sony to make an EV fell out after the decision.
Now Honda’s pivoting back to hybrids and hunting for growth in places like India and the rest of Asia. Maybe that’s the smarter move for now, but it’s a wake-up call: even a brand with Honda’s engineering chops can stumble when big plans crash into reality.
The real question isn’t if Honda can bounce back. It’s whether this costly reset came soon enough for them to claw back lost ground before the industry throws another curveball.
About the author
Jacob Oliva
Senior Editor, Autoblog