by WorldTribune Staff, May 14, 2026 Non-AI Real World News
Honda bet big on electric vehicles (EVs). The Japanese auto maker lost that bet. Big time.
Honda reported a $2.7 billion loss for the fiscal year ending March 31, 2026.
That is the company’s first operating loss since 1957 and wiped out over a trillion yen in profit.
“The company took nearly $10 billion to $15.7 billion in restructuring charges and write-downs for its failing EV strategy,” The New York Times reported.
Honda bet that the demand for EVs would increase. It did not. Even amid rising gas prices, demand for EVs has not increased, industry analysts say.
As a result, Honda canceled its entire North American EV program and 0 Series rollout.
The canceled program included multiple near-production EV models and retooled Ohio facilities already ramping for launch of those models.
Honda CEO Toshihiro Mibe said on May 14 that the deficit driven by failed electric vehicle bets forced him to abandon the company’s combustion-free vehicle ambition and pivot to 15 new hybrids through 2030.
Combined with Ford’s $19.5 billion write-down and General Motors’ $7.6 billion in EV-related charges, the auto industry’s collective retreat from battery-electric vehicles now totals roughly $67 billion.
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