Honda CEO apologises, says cancelling EVs was necessary

The past few months have been rocky for Honda, after cancelling a trio of upcoming EVs at the 11th hour and facing significant financial headwinds.

In March, Honda pulled the plug on production versions of the 0 Series SUV and 0 Series Saloon , as well as the upcoming Acura RSX EV which was set to be based on the same platform.

The EVs were all set to be produced in North America and launch as early as 2027, however declining demand in the market resulted in Honda ripping the bandaid off early.

At the time, Honda said the “reassessment of the automobile electrification strategy” would end up costing it up to 2.5 trillion yen (A$22.4 billion), with the potential for operating losses between 270 billion (A$2.4 billion) and 570 billion yen (A$5.1 billion) for the financial year.

These concerns were realised when Honda announced last month it had posted an operating loss of 414.3 billion yen (A$3.72 billion) for the 2025-2026 Japanese financial year (April 2025 to March 2026), a significant change on its previous operating profit of 1.21 trillion yen (A$10.9 billion).

At the core of the losses were Honda’s EV-related cancellations, previously expected to cost up to 2.5 trillion yen (A$22.4 billion), though the true cost of 1.45 trillion yen (A$13 billion) still had a significant impact in the short term.

Last week, Honda CEO Toshihiro Mibe addressed the brand’s shareholders for the first time since the announcement of its financial status at its annual meeting, which resulted in the executive apologising for leading the brand to its first loss in 70 years.

“I would like to ​express my deepest apologies to our shareholders for the significant concern and inconvenience caused ​by the net loss recorded in the previous fiscal year's financial results,” Mibe said, as reported by Reuters.

However, Mibe defended the company’s decision to axe the then-upcoming EVs, saying that if it had continued with the plan to produce them, “it would mean the automotive ‌business ⁠itself staying in the red for at least five years, possibly as long as seven”.

With Mibe at the helm, Honda last month walked back its ambitious goals to not produce any engine-powered vehicles by 2040, announced by the executive when he took the CEO role in 2021.

The carmaker has instead previewed what it called its “next-generation large-size hybrid systems”, centred around a V6 engine which complies with “stringent environmental regulations”.

Mated to new-gen drive units and a freshly developed battery pack, Honda claims the new V6 hybrid powertrain is not only highly efficient but also low-cost to the carmaker.

Honda revealed last month a new ‘Hybrid Sedan Prototype’ - expected to influence the next-generation Accord - and an Acura Hybrid SUV Prototype, both of which are expected to launch by 2029.