Honda takes $16 Billion Dollar EV Write-off

[mackinaw]

The retreat from EV's continues.  Now it's Honda that's cancelling future EV's and writing down EV investments.

 

HONDA TAKES $16B EV WRITE-OFF
Another automaker is taking a huge financial hit to pivot away from EVs. Ford recently announced a nearly $20 billion write-off, while Stellantis wrote off $26 billion. And now Honda says it will book up to nearly $16 billion in losses in its shift away from EVs. The automaker is canceling three EVs it was developing for North America, the 0 Series SUV, 0 Series Saloon and the Acura RSX. Honda says if it started producing and selling the vehicles, it would lead to even more losses in the long-term. On top of that its profitability has declined because of U.S. tariffs and not remaining competitive in Asia because it had to allocate more resources for EV development. So the company needs to save cash in order to offset losses in its automotive business. Several executives, including Honda’s CEO and executive vice president, are taking voluntary pay cuts for the next three months, as a result of its decision.

[Sherminator98]

This article says only $7.5B

 

Honda Kills Three US-Built EVs Before They Ever Launch, Taking up to $7.5 Billion Loss

 

They looked pretty terrible anyways...though the RSX looked decent. 

Edited March 12 by Sherminator98

[Harley Lover]

7 minutes ago, Sherminator98 said:

This article says only $7.5B

 

Honda Kills Three US-Built EVs Before They Ever Launch, Taking up to $7.5 Billion Loss

 

They looked pretty terrible anyways...though the RSX looked decent. 

 

The $7.5 billion figure is for the current fiscal year. The ~$16 billion figure includes total losses expected to be incurred from the current fiscal year into the next fiscal year. The OP is more correct.

https://www.autonews.com/honda/an-honda-cancels-evs-0-series-acura-rsx-losses-revised-strategey-0312/?utm_source=Sailthru&utm_medium=email&utm_campaign=Newsletter-ANBreakingNewsAlert-20260312

 

[Texasota]

This carnage across multiple OEMs is an epic example of what happens when government and politics dictate what OEMs should build and what consumers should buy. Most likely nothing will be learned from it and endless examples will unfold in the future.

[Biker16]

17 hours ago, Texasota said:

This carnage across multiple OEMs is an epic example of what happens when government and politics dictate what OEMs should build and what consumers should buy. Most likely nothing will be learned from it and endless examples will unfold in the future.

I think it's what happens when Oil companies and Automakers are allowed to set government policy.

[akirby]

52 minutes ago, Biker16 said:

I think it's what happens when Oil companies and Automakers are allowed to set government policy.

 

Which government policy benefits oil companies and automakers?  Certainly not CAFE.  Certainly not EV tax rebates or pending legislation outlawing ICE altogether.  Democrat goverment policy cost automakers tens of billions of dollars and created artificial demand.    All because liberals screamed that SUVs would burn up the planet and drown coastal cities.
 

Certainly not the chicken tax (stupid as it is) because the Japanese already build light trucks here and the Koreans may be following suit.

 

Nobody is forcing consumers to buy larger trucks and suvs.  A Rav4 is more expensive than Camry and corolla but outsells both.  Toyota/Lexus still has a full lineup of cars yet trucks and suvs outsold cars last year 1.8M to 700k.   That's not lack of product or government policy it's simple consumer preference.

[morgan20]

6 hours ago, Biker16 said:

I think it's what happens when Oil companies and Automakers are allowed to set government policy.

 

Yea, no doubt about it. Do you think this kind of regulatory capture is permanent in the U.S. Biker16?