Honda Retreats To Hybrids After Failed EV Bet Triggers Record $9 Billion Loss (electrek.co)
(Saturday May 16, 2026 @11:34AM (BeauHD)
from the change-of-plans dept.)
An anonymous reader quotes a report from Electrek:
> 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).
>
> 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.
>
> 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 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).
>
> 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.
>
> 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/