Honda Retreats To Hybrids After Failed EV Bet Triggers Record $9 Billion Loss (electrek.co)
- Reference: 0183219581
- News link: https://tech.slashdot.org/story/26/05/15/0244239/honda-retreats-to-hybrids-after-failed-ev-bet-triggers-record-9-billion-loss
- Source link: https://electrek.co/2026/05/14/honda-retreats-hybrids-after-failed-ev-bet-triggers-9-billion-loss/
> Honda is waving the white flag. The Japanese automaker previewed two new hybrids set to launch by 2028 after [1]taking an over $9 billion hit over its failed EV bet , leading to its biggest loss in company history. Honda admitted it was "unable to deliver products that offer value for money better than that of new EV manufacturers, resulting in a decline in competitiveness," after suddenly announcing plans to cancel three new EVs in the US in March, warning restructuring costs could reach 2.5 trillion yen ($15.7 billion).
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> After posting its first annual loss since it became a publicly traded company in 1957 on Thursday, Honda's CEO Toshihiro Mibe revealed the company's comeback plans. Honda is no longer planning to phase out gas-powered vehicles by 2040. Instead, Honda now aims "to achieve carbon neutrality by 2050," including a mix of EVs, hybrids, carbon-neutral fuels, and carbon-offset tech. Starting next year, Honda plans to begin introducing its next-gen hybrids, underpinned by a new hybrid system and platform. Honda said it aims to improve fuel economy by over 10% in its upcoming hybrids. The new system is expected to help cut costs by over 30% compared to Honda's current hybrid system.
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> By the end of the decade, Honda plans to launch 15 new hybrid models globally. In North America, its most important market, the company will introduce larger hybrids in the D-segment or above. Honda previewed two of the new hybrids during the business update: the Honda Hybrid Sedan Prototype and the Acura Hybrid SUV Prototype, which the company said will go on sale within the next two years.
[1] https://electrek.co/2026/05/14/honda-retreats-hybrids-after-failed-ev-bet-triggers-9-billion-loss/
Honda makes EVs? (Score:2)
I've seen a few concepts, like the kinda out-there [1]Saloon [google.com]. But I wasn't aware that they were producing any EVs, at least not for the North American market. A pity, too, since their hybrid powertrains are pretty good. I understand that designing/building a BEV is a different paradigm than a hybrid, but like Toyota I can't understand why the leap is so hard to make.
So....quit before they've even tried?
[1] https://www.google.com/search?q=honda+saloon
Re: (Score:2)
No one in America really wants them (EVs).
But that's not to say they shouldn't keep trying for markets that do want them....parts of the EU seem really hungry for them.
PHEV, dammit! (Score:2)
Their latest series-hybrid system would be perfect for offering PHEVs - just increase the battery size and add the charging equipment. Really silly of them to pass up such low-hanging fruit.
They will regret it (Score:2)
In 90s, people used to access internet via dial up modem and the largest modem manufacturer was Hayes. Suddenly, they went bankrupt.
What went wrong?
The highest data rate, a phone modem can support is 56 kbps. They made 56 kbps. Unfortunately, ISPs were not ready. They were still on 28 kbps. Since Hayes 56 kbps model were expensive, they had to heavily discount them and went into a big loss.
What was their response?
They retooled the manufacturing to produce 28 kbps. By the time, they went into full production
If they can't figure out EV (Score:2)
They're cooked as a company. That's it.
Re: (Score:2)
Not really. EVs appeal to a different market. You have to be able to afford the time to charge one*. Which means your time probably isn't worth much. Sure, I have to slop $100 worth of dinosaur juice in my car. But that's dirt cheap compared to the additional charging time an EV would take.
*Seattle, for one, completely blew the EV economics out of the water when they modified building codes to allow zero parking residential construcion. No more overnight charging. And the traffic cones and old lawn chairs
Re: (Score:3)
EV sales are increasing every year in Europe, while fossil sales decline. Same in China, another of Honda's markets.
Honda really screwed up. Their first EV, the Honda e, was small and low range, but it was innovative and really good fun. It showed that they understood EV tech and how to make a great electric car.
For the follow up, they rebadged a Chinese EV, and now seem to have given up. There was supposed to be a cooperation with Sony, but no sign of it.
Quite a few of the Japanese manufacturers missed the
Re: (Score:2)
> Not really. EVs appeal to a different market. You have to be able to afford the time to charge one*. Which means your time probably isn't worth much. Sure, I have to slop $100 worth of dinosaur juice in my car. But that's dirt cheap compared to the additional charging time an EV would take.
Yeah, no. They need to use "modern" fast charging batteries, as does every EV brought to market in the next couple of years. Both BYD and CATL have solved this problem -- [1]https://electrek.co/2026/04/21... [electrek.co]
[1] https://electrek.co/2026/04/21/catl-one-ups-byd-new-lfp-ev-battery-charges-in-6-mins/