Honda Never Lost Money In The Company's History. Until Now

Honda Motor Company will report its first full-year loss in 69 years, with projected losses of up to 630 billion yen ($4.0 billion), marking a drastic shift from its 903 billion yen ($5.8 billion) profit in 2025. The company is abandoning its electric vehicle plans, including the Honda 0 Series and Acura RSX, and refocusing on hybrids amid restructuring efforts led by CEO Toshihiro Mibe, who will unveil a recovery plan on May 14." "article": "Honda Motor Company is set to announce its first annual loss since going public in 1957, with projections indicating a deficit of between 360 and 630 billion yen ($2.3–$4.0 billion) for the fiscal year ending March 31. This marks a steep decline from the 903 billion yen ($5.8 billion) profit reported in 2025, as the automaker faces challenges in both its electric vehicle (EV) and gasoline models. CEO Toshihiro Mibe will confirm the exact figure on May 14, aligning with earlier forecasts. The company has already scrapped its EV ambitions, including the Honda 0 Series, Acura RSX, and the Sony Honda Mobility Afeela, citing lack of competitiveness. Honda also abandoned plans for an EV battery plant in Canada and exited the South Korean market entirely. The company expects to incur a $16 billion loss from its EV efforts, attributing part of the downturn to U.S. government policy shifts affecting combustion vehicle sales. To address the crisis, Honda is restructuring its operations, consolidating vehicle and software development under a single division while making marketing and sales more region-specific. Leadership has taken pay cuts—top executives forfeited bonuses and 30% of their pay for three months, while others gave up 20%. Mibe will unveil a detailed recovery plan on May 14, with a focus on expanding hybrid models, including a new V6-based hybrid system for vehicles like the Pilot, Passport, and Ridgeline. The shift away from EVs reflects Honda’s acknowledgment of market realities, particularly competition from Chinese automakers, as Mibe previously admitted in a statement. The company’s restructuring aims to streamline operations and reduce costs, with plans to extend popular models like the Acura MDX and Honda Odyssey in the U.S. market. Honda’s turnaround hinges on these strategic adjustments and leadership’s commitment to reversing its financial decline.