Trending Now - Honda Halts Production of Three Upcoming Us-made EV Models
WHO:
Honda, a Japanese automaker
WHAT:
Honda has canceled three electric vehicles that were months away from starting production: the Honda 0 SUV, the Honda 0 sedan, and the Acura RSX.
The total restructuring of Honda's EV business could cost up to 2.5 trillion yen ($15.7 billion).
CEO Toshihiro Mibe stated that the demand shift had made EV profitability "very difficult," according to Reuters.
Mibe and Executive Vice President Noriya Kaihara will forgo 30 percent of their compensation for three months, while other senior executives will give up 20 percent.
Honda has canceled three planned electric vehicles (EVs) for the United States.
The decision is expected to cost Honda up to $15.7 billion.
WHERE:
United States
WHEN:
The cancellations were announced in March 2026.
WHY:
Honda cited the elimination of federal EV tax credits, eased fossil fuel regulations, and US tariffs as reasons for the decision.
The company admitted it could not match the value offered by newer manufacturers in China building software-driven vehicles on shorter production cycles.
The cancellations are attributed to tariffs, changes in U.S. emissions regulations, and competition from Chinese manufacturers.
HOW:
Honda plans to redirect resources toward next-generation hybrids and will only bring EVs to market when demand justifies it.
Honda's decision was influenced by financial losses and an inability to remain competitive in the electric vehicle market.
(UPDATED March 12, 2026 23:04 UTC)
In a significant shift, Honda has canceled three electric vehicles that were just months away from production, including the Honda 0 SUV, the Honda 0 sedan, and the Acura RSX, as the company faces challenges in the EV market. CEO Toshihiro Mibe explained that the restructuring of Honda's EV business could cost up to 2.5 trillion yen, or about $15.7 billion, and cited factors like the elimination of federal EV tax credits and increased competition from newer manufacturers in China as reasons for this decision. Moving forward, Honda plans to focus on next-generation hybrids and will only introduce electric vehicles when there is sufficient demand.
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(UPDATED March 12, 2026 15:13 UTC)
Honda has announced the cancellation of three planned electric vehicles for the United States, a decision that could cost the company up to $15.7 billion. This move, revealed in March 2026, comes as a response to tariffs, shifts in U.S. emissions regulations, and increasing competition from Chinese manufacturers. Honda's choice reflects ongoing financial losses and challenges in maintaining competitiveness in the electric vehicle market.