Honda cancels three EVs that were months away from US production
Honda has announced it is canceling three electric vehicles it was months from starting production on at its EV Hub in Ohio. The Honda 0 SUV, the Honda 0 sedan and the Acura RSX are all being wound down. The company showed off all three models, and touted them as in near-production form at CES 2025. Unlike the Honda Prologue and Acura ZDX, which run on GM's Ultium platform, the scrapped models were built on Honda's own Zero platform and would have been its first fully in-house EVs.
Honda in part blamed the elimination of federal EV tax credits, eased fossil fuel regulations and US tariffs for the decision. The company said US demand for electric vehicles had slowed because of the policy changes. In China, it admitted it could not match the value offered by newer manufacturers building software-driven vehicles on shorter production cycles. CEO Toshihiro Mibe said at a press conference that the demand shift had made EV profitability "very difficult," according to Reuters.
The company said it will redirect resources toward next-generation hybrids and only bring EVs to market when demand justifies it. It also shared plans to expand in India, where it expects the hybrid market to expand. Honda is not alone in pulling back from EV production, with brands like Hyundai, Kia, Volkswagen, Porsche and Ford having all scrapped or delayed major US EV projects since federal policy shifted.
The total restructuring of its EV business could cost Honda up to 2.5 trillion yen ($15.7 billion), with the company set to lose money for the first time since going public in 1957. Mibe and Executive Vice President Noriya Kaihara will forgo 30 percent of their compensation for three months, with other senior executives giving up 20 percent. Honda said it plans to share a detailed long-term strategy at a press conference in May.This article originally appeared on Engadget at https://www.engadget.com/transportation/evs/honda-cancels-three-evs-that-were-months-away-from-us-production-155523384.html?src=rss
Rating
Innovation
Pricing
Technology
Usability
We have discovered similar tools to what you are looking for. Check out our suggestions for similar AI tools.
Honda shows off three new EVs in Tokyo, but its US plans are getting more t
<p>Every two years, the Japan Mobility Show gives us a preview of the future of motoring as envisioned by the major Japanese manufacturers. Sadly, for Honda, the resounding message coming from t [...]
Honda CES 2025 keynote: Watch Honda reveal its 0 Series EV prototypes live
<p>The CES 2025 spotlight is firmly on electric vehicles on Tuesday, with the likes of Afeela (Sony’s and Honda’s joint venture) and others holding keynotes. Honda has its own dedicated keyn [...]
