Honda unveils new US hybrids after $9 billion EV loss
▼ Summary
– US government policy changes, including the loss of EV tax incentives and tariffs, caused a 28% drop in EV sales in the first quarter of the year.
– Abandoned EV commitments led to over $9 billion in write-downs for Honda, resulting in its first operating loss in company history.
– Honda canceled several planned EV models, including three for Ohio and two in a joint venture with Sony.
– Honda CEO announced a shift in strategy to prioritize hybrid vehicles over battery EVs.
– Honda believes hybrids are key to addressing environmental challenges and will accelerate hybrid development and production.
After U.S. government policies sent the nation’s electric vehicle market into a tailspin, automakers have been forced to pivot quickly. The elimination of federal clean vehicle tax credits, the halt of charging infrastructure funding, and unpredictable tariffs triggered a 28 percent drop in EV sales during the first quarter of the year.
That collapse stands in stark contrast to the optimism of just a few years ago, when a strong commitment to an EV-heavy portfolio boosted share prices. As those ambitious plans now unravel, the financial fallout has been severe. Honda, for instance, recorded more than $9 billion in write-downs and posted its first operating loss in company history.
In response, Honda has already scrapped three EVs it intended to build in Ohio, plus two more planned through a joint venture with Sony. Then, at a press conference in Tokyo, CEO Toshihiro Mibe laid out the company’s new strategy for recovery.
Echoing General Motors’ recent shift, Honda acknowledged that hybrid vehicles are now the priority. This technology requires significantly fewer expensive battery minerals and materials than fully electric models.
“Honda will reallocate more development and production resources into hybrid models to accelerate the market launch ahead of the original schedule and increase the number of compelling products,” Mibe said. “We have made steady progress in the development of hybrid vehicle technologies, where Honda has strengths, based on our belief that hybrid models will continue to be the key to addressing environmental challenges.”
(Source: Ars Technica)
