Honda's Automotive Struggles Predated Its $15.7 Billion EV Loss
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Honda's $15.7 Billion EV Loss: A Wake-Up Call for a Struggling Automaker
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CNBC TV18•16-03-2026, 11:46
Honda's $15.7 Billion EV Loss: A Wake-Up Call for a Struggling Automaker
•Honda reported a ¥2.5 trillion ($15.7 billion) impairment charge due to ill-timed EV investments, likely leading to its first annual loss on record.
•The company's problems extend beyond EVs, including an aging lineup, sub-average sales growth in the US (0.5%), and stalled business in China.
•Honda lags rivals like Toyota and Ford in hybrid offerings, despite being an early pioneer, and cut back hybrid production in the US.
•Strategic missteps include scrapping new 0 series EV models and the all-electric Acura RSX, and a failed vision for 40% EV sales by 2030.
•Long-standing issues like focusing on volume over quality (2012 sales target) and organizational changes contributed to its decline, with global sales peaking in 2019.
