Honda has cancelled its planned "Zero Series" electric vehicles, including an SUV and Saloon model, citing an extremely challenging financial situation and declining EV demand. The cancellation contributes to a massive expected annual loss for the company, its first in 50 years as a public company.
This move is part of a broader industry trend, with major automakers like Ford, GM, and Stellantis also recording multibillion-dollar losses on their EV investments. Honda now plans to shift its focus more toward hybrid vehicles instead of the cancelled pure-electric models.
Main Topics: Honda's financial losses and EV cancellation; Broader auto industry struggles with EV investments; Strategic shift from EVs to hybrids.
Farewell, Honda Zero. We never knew thee.
Honda cancels Zero Series EVs, citing ‘extremely challenging’ situation
Throw a few more on the smoldering pile of dead EVs.
Throw a few more on the smoldering pile of dead EVs.
Honda is cancelling its Zero Series SUV and Saloon, as well as the Acura RSX EVs, citing an “extremely challenging earnings situation.” The Japanese automaker, which unsuccessfully tried to merge with Nissan last year, said it expected to make a net loss of ¥360 billion (~$2.5 billion) to ¥630 billion (~$4.4 billion) in the full year ending this month — which, according to The Financial Times, would be Honda’s first ever annual recorded loss since becoming a public company 50 years ago.
Honda, which is grappling with President Trump’s tariffs, had been one of the most aggressive automakers in pursuing EVs. The company said it was aiming for 30 new EVs by 2030 with 2 million units sold, 100 percent zero-emission auto sales by 2040, and carbon neutrality “for all products and corporate activities” by 2050. Now its recording a loss on its EV investment of ¥340billion-570 billion ($2.14 billion-$3.58 billion).
Honda isn’t alone in dealing with stagnating EV sales in the US and rising competition from China. Ford announced a $19.5 billion write-down on its EV investments — one of the largest in corporate history. GM said it would take a $7.6 billion charge on EVs, while Stellantis recorded a colossal $26.6 billion hit.
Honda’s Zero series was meant to thread the needle on affordability and futuristic tech. The Saloon and SUV both drew from the automaker’s Formula 1 racing experience, with designs similar to iconic vehicles from the ’70s and ’80s, like the Lamborghini Countach, AMC Gremlin, Aston Martin Lagonda Shooting Brake. The Zero EVs were expected to have around 300 miles of range.
Honda said it killed the EVs, along with the Acura RSX, to avoid incurring future losses, citing the “current business environment where the demand for EVs is declining significantly.” Instead, the company plans on leaning more into hybrids. (Where have I heard that one before?)
Throw a few more on the smoldering pile of dead EVs.
Meridiano
