Honda records its first-ever annual loss on a costly EV strategy

Honda's Chief Executive Toshihiro Mibe speaks at a press conference in Tokyo Thursday, May 14, 2026. (Yuta Omori/Kyodo News via AP) · Associated Press · ASSOCIATED PRESS

YURI KAGEYAMA

Thu, May 14, 2026 at 2:16 AM CDT 2 min read

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TOKYO (AP) — Honda racked up a 423.9 billion yen ($2.7 billion) loss Thursday, the first-ever full year loss for the Japanese automaker, acknowledging heavy costs for its electric-vehicle plans, stemming from President Donald Trump’s pro-U.S. policies.

The Japanese automaker said losses related to its EV operations are estimated to total 2.5 trillion yen ($16 billion), incurred mostly in the fiscal year just ended and the current fiscal year.

Analysts say Honda Motor Co. might have been too ambitious too fast, when many markets weren’t ready. As a result, Honda abandoned many of its plans for EV models, including those in the works in a joint venture with Sony Corp.

“EV demand has declined considerably, due to the rollback of environmental regulations in the U.S. and other factors,” Honda said in a statement.

The Trump administration has pulled back on incentive programs for EVs and withheld money to states wanting to add more EV charging stations, even as gas prices have soared over the war in Iran.

Trump also blocked California’s stringent electric vehicle mandates last year, backpedaling on the shift to environmental models.

Trump’s tariffs on imported autos and auto parts, although lowered to 15% from the initial 25%, also worked to dent Honda’s profitability.

Tokyo-based Honda’s bottom line got a lift from its healthy motorcycle business, helping Honda’s overall sales for the fiscal year through March to rise 0.5% to 21.8 trillion yen ($138 billion).

Honda, which makes the Accord sedan and Super Cub motorcycles, sold 3.4 million vehicles around the world in the fiscal year through March, down from 3.7 million the previous year.

It sold 22.1 million motorcycles, up from 20 million a year before. Honda dominates some markets in motorcycles, including India.

Honda forecast a return to profit for the fiscal year through March 2027, at 260 billion yen ($1.7 billion).

Chief Executive Toshihiro Mibe outlined a new growth strategy that included a continued pursuit of carbon neutrality. But he acknowledged the need to work on hybrids and regular gasoline-engine models as well, not just electric vehicles.

When asked by a reporter whether he was considering stepping down to take responsibility for the dire results, a common response in Japan, Mibe said he wanted to carry out the revival plan first.

“We will continue our research to develop future technologies including electric vehicle batteries,” he said. “We will get back on a growth track.”

Just think if the rest of the world would celebrate when American manufacturers aren't profitable. Then contemplate what behavior we would have to embody to make that happen. Once you've done that share some more fake love for our idiot in chief.

I better buy some ponies.

More good news:

US EPA proposes delaying enforcement of Biden vehicle pollution rule

By David Shepardson

Fri, May 15, 2026 at 8:22 AM CDT

2 min read

Vehicles drive on the 110 freeway towards downtown Los Angeles, in Los Angeles, California, U.S., April 23, 2026.

The U.S. Environmental Protection Agency on Thursday proposed a delay in enforcement of a regulation requiring significant cuts in air pollution from vehicles.

The EPA ‌estimated that delaying former President Joe Biden's anti-pollution rule would save automakers $1.7 billion. Environmental groups ‌criticized the delay, saying it would lead to an increase in preventable illness and premature deaths.

The EPA said the proposal, first reported by Reuters earlier Thursday, would delay compliance deadlines for light- and medium-duty vehicles for two years until the 2029 model year. It cited the decline in U.S. sales of electric vehicles, which it said made the more stringent pollution rules unattainable for manufacturers.

In April 2024, Biden's EPA finalized a rule requiring significant reductions in ‌so-called "criteria pollutants" emitted from passenger and ⁠commercial vehicles from the 2027 through 2032 model years.

The Sierra Club criticized the move to delay enforcement of more stringent limits on pollutants from gasoline-powered vehicles. The ⁠group said the reductions are "readily achievable using commonsense, low-cost technologies already used by many vehicles."

The Sierra Club added that EPA’s analysis "shows that delaying the standards would sharply increase harmful pollution, preventable illness, and premature deaths."

The Alliance for Automotive Innovation, a trade group representing General Motors, Toyota Motor, Volkswagen , Ford, Stellantis, Hyundai and others, said the EPA ‌proposal "makes a lot of sense given current market conditions."

The group's CEO John Bozzella said the Biden emission standards were "unachievable absent significant growth in electric vehicle sales" and would make gasoline-powered vehicles more expensive.

The Biden rules require a 50% reduction through 2032 for light vehicles and a 58% cut for medium-duty vehicles in the six so-called "criteria pollutants": ozone, particulate matter, carbon monoxide, nitrogen dioxide, sulfur dioxide and lead.

In 2024, EPA estimated $13 ‌billion in annualized benefits due to reduced emissions of criteria pollutants that contribute to the formation of soot and smog.

The Trump administration has taken a series of steps to roll back vehicle regulations. In February, it finalized its repeal of the "endangerment ‌finding" for vehicles, a 2009 determination that greenhouse gas emissions endanger human health, which gave EPA authority to regulate emissions from vehicles.

In December, the Transportation Department proposed significantly reducing the fuel economy requirements from model years 2022 to 2031, requiring 34.5 miles per gallon on average by 2031, down from 50.4 ‌miles per gallon.

This year, Trump signed legislation that ended fuel economy penalties for automakers, and USDOT said they faced no fines dating back to the 2022 model year.

Vehicles for sale are lined up on a Honda dealership lot in City of Industry, California. - Frederic J. Brown/AFP/Getty Images/File

The auto industry’s massive pullback from its electric vehicle plans has claimed another victim: Honda, which posted its first annual loss since 1955.

Honda and other global automakers downshifted their EV ambitions after the Trump administration changed US emissions rules and ended a $7,500 tax credit for American buyers. EV sales fell sharply after the tax credit went away in September, and the recent spike in gasoline prices has not sparked a significant increase in EV demand by US buyers.

Car companies had expected much stricter American emissions rules, leading them to invest billions of dollars to move towards an all-electric vehicle lineup sometime in the next decade. But the Trump administration scrapped the tougher emissions rules put in place by the Biden administration and eliminated massive financial penalties automakers faced if they violated emissions rules.

Those changes led automakers to return their focus on selling large gasoline powered trucks and SUVs, on which they made the most profit. But the shift has been costly to automakers, who have been forced to write down the value of their large-scale EV investments.

For its fiscal year ending in March, Honda reported it took a 1.6 trillion yen, or nearly $10 billion, hit to its earnings, wiping out what would have otherwise been a potential $7.4 billion profit for the year. Instead, it posted a net loss of 403.3 billion yen, or $2.6 billion.

Honda also indicated it expected an additional writedown on its previous EV investment in the current fiscal year, although not enough to cause another loss.

Honda’s results follow General Motors, which reported a $7.2 billion charge in 2025 for its pullback in EV efforts, while rival Ford announced a charge of $17.4 billion for the year and Stellatis, which makes cars in North America under the Jeep, Ram, Dodge and Chrysler brands, reported a charge of 25.4 billion euros, or $29.7 billion.

GM was still able to report a profit for the year, even with its charge. But the cost of pulling back on EVs also caused Ford and Stellantis to report net losses for 2025. Ford also expects additional charges this year.

Still, automakers haven’t dropped EV plans completely. There are still tougher emissions rules coming in Europe and Asia and perhaps in a number of US states, led by California, which has a regulation on the books that would ban the sale of new gasoline powered cars by 2035, although Congress has moved to block that ban from taking effect.

Automakers are also concerned about the rising competition from Chinese automakers, which are primarily selling EVs. Chinese automakers have relatively little presence in the American market as of yet.

17 hours ago, Deephaven said:

Just think if the rest of the world would celebrate when American manufacturers aren't profitable. Then contemplate what behavior we would have to embody to make that happen. Once you've done that share some more fake love for our idiot in chief.

I look at it as a continuation of shoving the liberal dream of killing gas engines right up their asses.

Sorry for your loss.

More pollution! Yeah

I don't get the hatred towards EVs, other than purely political. Simpler, less moving parts, cheaper maintenance, faster, more torque, etc. The downsides on range and charge times are only temporary and are always improving.

Let them compete, side by side, no tax incentive, no EPA mandates, and no tariff barriers.

EV's are great for certain things. Helping the environment is not one of them. Mandates are also idiotic. Doesn't mean EV's are shit. They have a place just like diesels.

28 minutes ago, Snake said:

Sorry for your loss.

The loss is all of ours. The behavior of our leaders is encouraging the same disgusting behavior you showed towards us. That will directly hurt American companies and Americans. Keep celebrating the downward spiral it is putting us in.

3 hours ago, Deephaven said:

EV's are great for certain things. Helping the environment is not one of them. Mandates are also idiotic. Doesn't mean EV's are shit. They have a place just like diesels.

Forklifts, JLG lifts, etc.

3 hours ago, akvanden said:

I don't get the hatred towards EVs, other than purely political. Simpler, less moving parts, cheaper maintenance, faster, more torque, etc. The downsides on range and charge times are only temporary and are always improving.

Let them compete, side by side, no tax incentive, no EPA mandates, and no tariff barriers.

The hatred comes from being told what to do and what to drive. You want a EV be my guest by 1000 of them start a club. Just stop telling me ( not you specifically) I must buy one. The only car Im going to buy next is a 1969 Z-28. Thats not a EV by the way.

9 minutes ago, Pete said:

The only car Im going to buy next is a 1969 Z-28.

Nice! Do you have one picked out or are you looking for the right one?

28 minutes ago, Pete said:

The hatred comes from being told what to do and what to drive. You want a EV be my guest by 1000 of them start a club. Just stop telling me ( not you specifically) I must buy one. The only car Im going to buy next is a 1969 Z-28. Thats not a EV by the way.

No one has made me buy one, I drive a gas guzzling pickup. But I get it, that's why I specifically said "Let them compete, side by side, no tax incentive, no EPA mandates, and no tariff barriers."

Pete just doesn't want to drag race against them

Wife’s hybrid gets 40mpg.

38 minutes ago, ckf said:

Nice! Do you have one picked out or are you looking for the right one?

Looking.

If the right one comes along I may be the new owner.

I do know where a very special 1969 Camaro resides. Been in the same spot since early 80s.

7 minutes ago, Mainecat said:

Wife’s hybrid gets 40mpg.

Goody fer you. Let the fake Indian and Bern dog know this. Oh dont forget the Boston chink and the Healy dyke

21 minutes ago, akvanden said:

No one has made me buy one, I drive a gas guzzling pickup. But I get it, that's why I specifically said "Let them compete, side by side, no tax incentive, no EPA mandates, and no tariff barriers."

The last administration did all they could to shove it down our throats. I’ll never own one of those fucking things. It’s a dem liberal status symbol. Look at me Im saving the planet all while riding a 2 stroke sled.

4 minutes ago, Pete said:

Looking.

If the right one comes along I may be the new owner.

I do know where a very special 1969 Camaro resides. Been in the same spot since early 80s.

Z 28?

23 minutes ago, XCR1250 said:

Z 28?

No

COPO 9561.

17 minutes ago, Pete said:

No

COPO 9561.

I had a new 69 Z.

54 minutes ago, Pete said:

The last administration did all they could to shove it down our throats. I’ll never own one of those fucking things. It’s a dem liberal status symbol. Look at me Im saving the planet all while riding a 2 stroke sled.

Unfortunately that administration dragged our nitwits along with them. 10's of billions of taxpayer dollars just evaporated in what is a Trump worthy, Trudeau era grift.

It's crippled our auto industry as Ontario doubled down on EV's to the detriment if ice vehicle production.

I don't see Ontario's auto industry recovering from what Ford and Trudeau did to it.

3 hours ago, Pete said:

The last administration did all they could to shove it down our throats. I’ll never own one of those fucking things. It’s a dem liberal status symbol. Look at me Im saving the planet all while riding a 2 stroke sled.

I wouldn’t buy one to save the planet, I’d buy one for power and the ability not to be dependent on someone else for energy. Big oil and the Middle East takes enough of our money.

44 minutes ago, akvanden said:

I wouldn’t buy one to save the planet, I’d buy one for power and the ability not to be dependent on someone else for energy. Big oil and the Middle East takes enough of our money.

You’re dependent on the electric company. And reliability. Both suck ass

7 minutes ago, Pete said:

You’re dependent on the electric company. And reliability. Both suck ass

Solar. In control of your own.

@BOHICA

4 hours ago, Pete said:

Goody fer you. Let the fake Indian and Bern dog know this. Oh dont forget the Boston chink and the Healy dyke

I’ll call the convicted rapist and felon when he gets back on my Trump phone…oh wait.