Trending Now - Honda Faces Historic Annual Loss Amid Expensive EV Shift

WHO:

ABC News - Honda Motor Co. is the Japanese automaker involved.

ABC News - Toshihiro Mibe is the Chief Executive of Honda.

WHAT:

ABC News - Honda's losses related to its electric vehicle operations are estimated to total 2.5 trillion yen ($16 billion), incurred mostly in the fiscal year just ended and the current fiscal year.

Motor1.com - Honda's new hybrid powertrain is projected to improve fuel efficiency by more than 10 percent compared to the current setup, with costs expected to drop by more than 30 percent.

Electrek - Honda's CEO Toshihiro Mibe revealed the company’s comeback plans, stating, "We are no longer planning to phase out gas-powered vehicles by 2040."

The Verge - Honda is planning to launch 15 next-generation hybrid models globally by the end of the fiscal year ending March 31, 2030, primarily in North America, with "large-size models" launching in North America in 2029.

Electrek - Honda previewed two new hybrids, the Honda Hybrid Sedan Prototype and the Acura Hybrid SUV Prototype, which are scheduled to go on sale within the next two years.

Electrek - Honda's CEO Toshihiro Mibe revealed the company’s comeback plans, stating, "We are no longer planning to phase out gas-powered vehicles by 2040."

Electrek - Honda's total cost of its EV pullback is estimated to be 2.5 trillion yen ($15.7 billion), with most of it expected to be recorded in the upcoming fiscal year.

Electrek - For the fiscal year ended March 2026, Honda's EV-related losses reached 1.45 trillion yen ($9.2 billion).

Motor1.com - Honda plans to introduce its next-generation hybrids starting next year, which will feature a new hybrid system and platform.

ABC News - Honda reported a full-year loss of 423.9 billion yen ($2.7 billion), marking its first-ever annual loss.

CNN - Honda's annual loss is the first since 1955.

Motor1.com - Honda plans to launch a new sedan and an Acura SUV featuring a next-generation hybrid powertrain, scheduled to go on sale in 2028.

Motor1.com - Honda aims to launch 15 models with its new hybrid powertrain by March 2030.

Motor1.com - Honda's new hybrid powertrain is projected to improve fuel efficiency by more than 10 percent compared to the current setup.

Motor1.com - Honda is investing 4.4 trillion yen (nearly $28 billion) on upcoming gas and hybrid models within the next three years.

Motor1.com - Honda will allocate around 0.8 trillion yen (about $5 billion) to fund the development of future electric vehicles.

Motor1.com - Honda plans to launch a new sedan and an Acura SUV featuring a next-generation hybrid powertrain, scheduled to go on sale within the next two years.

Motor1.com - Honda aims to launch 15 models with its new hybrid powertrain by March 2030, with the majority targeted for the U.S. market.

Motor1.com - Honda is investing 4.4 trillion yen (nearly $28 billion) on upcoming gas and hybrid models within the next three years.

Motor1.com - Honda will allocate around 0.8 trillion yen (about $5 billion) to fund the development of future electric vehicles.

CNN - Honda reported a net loss of 403.3 billion yen, or $2.6 billion, for the fiscal year ending in March, which is different from the previously reported loss of 423.9 billion yen ($2.7 billion).

CNN - Honda took a 1.6 trillion yen, or nearly $10 billion, hit to its earnings, which wiped out what would have otherwise been a potential $7.4 billion profit for the year.

CNN - Honda indicated it expects an additional writedown on its previous EV investment in the current fiscal year, although it will not be enough to cause another loss.

ABC News - Honda recorded a full-year loss of 423.9 billion yen ($2.7 billion).

ABC News - Honda's losses related to its electric vehicle operations are estimated to total 2.5 trillion yen ($16 billion).

ABC News - Honda sold 3.4 million vehicles globally in the fiscal year, down from 3.7 million the previous year.

ABC News - Honda sold 22.1 million motorcycles, an increase from 20 million the previous year.

ABC News - Honda's overall sales for the fiscal year rose 0.5% to 21.8 trillion yen ($138 billion).

ABC News - Honda forecasts a return to profit for the fiscal year through March 2027, at 260 billion yen ($1.7 billion).

WHERE:

ABC News - Honda is based in Tokyo, Japan.

WHEN:

ABC News - The fiscal year through March 2027 is mentioned as a future period for profit forecast.

WHY:

CNN - The Trump administration's changes to U.S. emissions rules and the elimination of a $7,500 tax credit for American buyers contributed to a sharp decline in EV sales after September.

ABC News - The loss is attributed to a costly electric-vehicle strategy and declining EV demand due to the rollback of environmental regulations in the U.S.

ABC News - The Trump administration's policies, including the blocking of California's electric vehicle mandates and tariffs on imported autos, contributed to Honda's profitability issues.

HOW:

The Verge - Honda is reallocating capacity in its Ohio plants to build gas and hybrid vehicles and will convert part of the EV battery production lines at their joint venture with LG Energy Solution to hybrid battery production.

Electrek - Honda will convert a portion of the EV battery production lines at its joint venture battery plant with LG Energy Solution to manufacture hybrid batteries.

CNN - Honda and other automakers have been forced to write down the value of their large-scale EV investments due to the shift in focus back to selling large gasoline-powered trucks and SUVs.

ABC News - Honda acknowledged it might have been too ambitious too fast with its EV plans, leading to the abandonment of many EV models, including those in a joint venture with Sony Corp.

ABC News - Honda plans to continue research on future technologies, including electric vehicle batteries, while also focusing on hybrids and gasoline-engine models.

(UPDATED May 15, 2026 06:12 UTC)

Honda is facing significant losses related to its electric vehicle operations, estimated at 2.5 trillion yen, or about $16 billion, primarily from the last fiscal year and the current one. In a shift in strategy, CEO Toshihiro Mibe announced that the company will no longer phase out gas-powered vehicles by 2040, while also revealing plans to launch 15 next-generation hybrid models globally by the end of the fiscal year ending March 31, 2030. Additionally, Honda previewed two new hybrids, the Honda Hybrid Sedan Prototype and the Acura Hybrid SUV Prototype, both set to go on sale within the next two years, as the company reallocates capacity in its Ohio plants to support this transition.

(UPDATED May 14, 2026 23:18 UTC)

Honda's CEO Toshihiro Mibe announced that the company is no longer planning to phase out gas-powered vehicles by 2040, marking a significant shift in their strategy. The total cost of Honda's pullback from electric vehicles is estimated at 2.5 trillion yen, or about $15.7 billion, with most of that expected to hit their books in the upcoming fiscal year, following reported losses of 1.45 trillion yen, or $9.2 billion, for the fiscal year that ended in March 2026. Looking ahead, Honda plans to introduce next-generation hybrids starting next year, featuring a new hybrid system and platform, while also converting part of their EV battery production lines at their joint venture with LG Energy Solution to manufacture hybrid batteries.

(UPDATED May 14, 2026 19:32 UTC)

Honda has reported a staggering full-year loss of 423.9 billion yen, or approximately $2.7 billion, marking the company's first annual loss since 1955. In response to this financial setback, Honda is planning to launch a new sedan and an Acura SUV featuring a next-generation hybrid powertrain, with sales expected to begin in 2028, and aims to introduce 15 models with this technology by March 2030. The company is investing a significant 4.4 trillion yen, nearly $28 billion, on upcoming gas and hybrid models over the next three years, while also allocating around 0.8 trillion yen, about $5 billion, for the development of future electric vehicles.

(UPDATED May 14, 2026 17:35 UTC)

Honda is gearing up to introduce a new sedan and an Acura SUV that will feature a next-generation hybrid powertrain, with plans for these models to hit the market within the next two years. The automaker aims to roll out a total of 15 models equipped with this hybrid technology by March 2030, primarily focusing on the U.S. market. To support these initiatives, Honda is investing a substantial 4.4 trillion yen, nearly $28 billion, in upcoming gas and hybrid models over the next three years, while also setting aside around 0.8 trillion yen, or about $5 billion, for the development of future electric vehicles.

(UPDATED May 14, 2026 15:46 UTC)

Honda has reported a net loss of 403.3 billion yen, or $2.6 billion, for the fiscal year ending in March, a slight improvement from the previously reported loss of 423.9 billion yen. The automaker faced a significant hit of 1.6 trillion yen, nearly $10 billion, which erased what could have been a $7.4 billion profit, and it anticipates an additional writedown on its previous electric vehicle investments this fiscal year, although it expects to avoid another loss. The decline in EV sales, particularly after September, has been attributed to changes in U.S. emissions rules and the removal of a tax credit for American buyers, prompting Honda and other manufacturers to reassess the value of their EV investments as they shift focus back to gasoline-powered vehicles.

(UPDATED May 14, 2026 13:30 UTC)

Honda Motor Co., based in Tokyo, Japan, has reported a staggering full-year loss of 423.9 billion yen, which is approximately $2.7 billion, largely due to its costly electric vehicle strategy and declining demand linked to the rollback of environmental regulations in the U.S. The company sold 3.4 million vehicles globally in the fiscal year, a decrease from 3.7 million the previous year, but saw an increase in motorcycle sales, reaching 22.1 million, up from 20 million. Looking ahead, Honda forecasts a return to profit for the fiscal year through March 2027, estimating earnings of 260 billion yen, or about $1.7 billion, while continuing to focus on research for future technologies, including electric vehicle batteries and hybrids.