Facing heavy losses, Honda cancels its three US-made electric vehicles
Tariffs, torn-up US emissions regs, and being uncompetitive in China are all to blame.
arstechnica.com
arstechnica.com
electrek.co
the company made the decision to cancel the development and market launch of three EV models that had been planned for production in the U.S., namely the Honda 0 SUV, Honda 0 Saloon, and Acura RSX. Honda determined that starting production and sales of these three models in current business environment where the demand for EVs is declining significantly would likely result in further losses over the long term.
The Honda 0 SUV and Saloon were doomed by their stylists. Honda put the factory before the focus group and wasted $15+ billion on their EV manufacturing hub in Ohio. The Sony-Honda Afeela was doomed by growing old before it was released (and by being a car instead of an SUV).Honda is canceling its new EV launches-including the Honda 0 SUV, Honda 0 sedan, and Acura RSX-due to heavy financial losses ($5–7 billion), weak U.S. EV demand, lost tax incentives, trade war impacts, and inability to compete in China’s software-focused EV market. The company will focus on hybrids in the U.S., delay EV launches until profitability improves, and executives will take temporary pay cuts. Software-defined vehicles (SDVs) are key in China, enabling faster feature updates and lower development costs, which Honda struggles to match.