Honda cancels three EVs that were months away from US production

"Honda in part blamed the elimination of federal EV tax credits, eased fossil fuel regulations and US tariffs for the decision. The company said US demand for electric vehicles had slowed because of the policy changes. In China, it admitted it could not match the value offered by newer manufacturers building software-driven vehicles on shorter production cycles."

"The company said it will redirect resources toward next-generation hybrids and only bring EVs to market when demand justifies it. It also shared plans to expand in India, where it expects the hybrid market to expand. Honda is not alone in pulling back from EV production, with brands like Volkswagen having all scrapped or delayed major US EV projects since federal policy shifted."

"The total restructuring of its EV business could cost Honda up to 2.5 trillion yen ($15.7 billion), with the company set to lose money for the first time since going public in 1957. Mibe and Executive Vice President Noriya Kaihara will forgo 30 percent of their compensation for three months, with other senior executives giving up 20 percent."

Honda is canceling three electric vehicles—the Honda 0 SUV, Honda 0 sedan, and a third model—that were months away from production at its Ohio EV Hub. These vehicles were built on Honda's proprietary Zero platform and would have been its first fully in-house EVs. The cancellation stems from multiple factors: elimination of federal EV tax credits, relaxed fossil fuel regulations, US tariffs, and slowed US EV demand. Additionally, Honda cannot compete with Chinese manufacturers offering software-driven vehicles on faster production cycles. The company will redirect resources toward next-generation hybrids and only launch EVs when market demand justifies it. This restructuring could cost up to 2.5 trillion yen ($15.7 billion), marking Honda's first loss since going public in 1957.

Read at Engadget