Honda Motor announced Thursday it expects losses between $2.6 billion and $4.3 billion this fiscal year after canceling several electric vehicle projects. The Japanese automaker cited a slowdown in North America's electric vehicle market as the reason for halting development of U.S.-made electric models.
Japanese automaker Honda Motor announced Thursday it anticipates significant financial losses ranging from $2.6 billion to $4.3 billion for the current fiscal year ending this month, following a major reassessment of its electric vehicle plans.
The company has decided to halt development and cancel market introductions of several electric vehicle models planned for U.S. production, citing what it called a “slowdown of the EV market in North America.” This strategic pivot is expected to generate expenses and losses totaling up to 2.5 trillion yen across several fiscal years.
The dramatic financial revision represents a sharp turnaround from Honda’s earlier projections, which had anticipated a profit of 300 billion yen for the fiscal year. Company officials scheduled a press conference for Thursday morning to discuss the changes in strategy.
The announcement reflects broader challenges facing automakers as they navigate shifting consumer demand and market conditions in the electric vehicle sector across North America.
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