- Honda halted development of three planned BEV models for North America.
- The strategy shift could result in losses reaching JPY 2.5 trillion.
The Honda electric vehicle development suspension announced on March 12 marks a major shift in the company’s electrification roadmap for North America. Honda confirmed it has halted development and the planned market launch of three battery-electric vehicle models originally scheduled for production in the region. The move comes as the automaker reassesses its broader four-wheel electrification strategy and evaluates financial risks associated with the transition to fully electric mobility.
Financial impact and supplier compensation plans
The strategic review is expected to carry significant financial consequences. The company estimates that the revision of its electrification plans could lead to total losses of up to JPY 2.5 trillion across the current fiscal year and the fiscal year ending March 2027. Around JPY 1.2 trillion of this amount is projected to be recorded as a loss in the next fiscal year, primarily allocated to compensate suppliers that had already begun preparations for EV component production. Suppliers indicated that negotiations over compensation will still be required, particularly for investments in molds, stamping tools, and welding equipment prepared for the cancelled vehicle programs.
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