Honda takes a $15.7 billion hit as EV retreat continues to batter legacy automakers

"Honda said it expects to write off up to 2.5 trillion yen - roughly $15.7 billion - as it reshapes its North American EV strategy. Honda expects the charge will push profits into the red in 2026, marking its first annual loss in nearly 7 decades."

"The EV pullback has gained momentum after the federal government ended the $7,500 tax credit for US-built EVs under the Inflation Reduction Act in September. The rebate was intended to spur both EV adoption and US auto manufacturing."

"In total, the five automaking behemoths have announced $72.9 billion in write-downs tied to EV portfolio adjustments. Honda said its EV reset stems from two main pressures: an 'unfavorable impact' from changes in US tariff policies affecting its gasoline and hybrid business, and a decline in competitiveness in Asia."

Honda announced a write-off of up to 2.5 trillion yen ($15.7 billion) as it restructures its North American EV strategy, expecting its first annual loss in nearly seven decades in 2026. The company is canceling the Honda 0 Saloon, Honda 0 SUV, and Acura RSX EV, leaving it with minimal EV offerings. This pullback follows the September expiration of the $7,500 federal EV tax credit under the Inflation Reduction Act. Multiple legacy automakers have announced similar multibillion-dollar charges: Stellantis ($26 billion), Ford ($19.5 billion), General Motors ($6 billion), and Volkswagen ($5.7 billion), totaling $72.9 billion in write-downs. Honda's retreat stems from unfavorable US tariff policy impacts and declining competitiveness in Asian markets.

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