{"id":47440,"date":"2026-03-12T16:21:34","date_gmt":"2026-03-12T16:21:34","guid":{"rendered":"https:\/\/agooka.com\/news\/usa\/honda-takes-a-15-7-billion-hit-as-ev-retreat-continues-to-batter-legacy-automakers\/"},"modified":"2026-03-12T16:21:34","modified_gmt":"2026-03-12T16:21:34","slug":"honda-takes-a-15-7-billion-hit-as-ev-retreat-continues-to-batter-legacy-automakers","status":"publish","type":"post","link":"https:\/\/agooka.com\/news\/usa\/honda-takes-a-15-7-billion-hit-as-ev-retreat-continues-to-batter-legacy-automakers\/","title":{"rendered":"Honda takes a $15.7 billion hit as EV retreat continues to batter legacy automakers"},"content":{"rendered":"<figure><img decoding=\"async\" src=\"https:\/\/i.insider.com\/69b2bdab4d65ec517529e258?format=jpeg\" alt=\"A Honda 0 Saloon is parked on a showroom floor in front of a pink and purple digital screen. Several onlookers are surrounding the car and taking pictures.\"\/><figcaption>Honda is writing down $15.7 billion on its EV division.<\/p>\n<p>Artur Widak\/NurPhoto via Getty Images<\/p>\n<\/figcaption><\/figure>\n<ul>\n<li>Honda said it booked a charge of up to $15.7 billion as it retreats from some EV plans.<\/li>\n<li>The Japanese automaker joins other global legacy automakers announcing billion-dollar EV charges.<\/li>\n<li>The Honda 0 Saloon, Honda 0 SUV, and Acura RSX EV are all canceled. It leaves Honda with one EV.<\/li>\n<\/ul>\n<p>Honda is taking a massive financial hit as it pulls back on its electric-vehicle ambitions.<\/p>\n<p>On Thursday, the Japanese automaker said it expects to write off up to 2.5 trillion yen \u2014 roughly $15.7 billion \u2014 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.<\/p>\n<p>It&#039;s the latest in a growing list of legacy automakers to announce multibillion-dollar hits as the industry recalibrates its electric plans.<\/p>\n<p>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.<\/p>\n<p>&quot;Many automakers were investing in their EV platforms to align with the subsidies,&quot; Seth Goldstein, an EV analyst at Morningstar, told Business Insider. &quot;When these expired early last September, this led automakers to adjust their investments and EV strategies.&quot;<\/p>\n<p>Jeep maker Stellantis booked a $26 billion charge after discontinuing several EVs and plug-in hybrids. Ford reported a $19.5 billion hit in December and canceled its F-150 Lightning. General Motors took a $6 billion charge as it slowed production across its 11 EV models. Volkswagen also had a $5.7 billion charge.<\/p>\n<p>In total, the five automaking behemoths have announced $72.9 billion in write-downs tied to EV portfolio adjustments.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/i.insider.com\/69b2ccf1a7a4f9df67ba3814?format=jpeg\" alt=\"A yellow Acura RSX EV with a black roof and black wheels sits on a well-manicured lawn.\"\/><figcaption>Honda also said it would cancel US production of three cars, including the Acura RSX EV, shown above.<\/p>\n<p>Acura<\/p>\n<\/figcaption><\/figure>\n<p>Honda said its EV reset stems from two main pressures: What it described as an &quot;unfavorable impact&quot; from changes in US tariff policies affecting its gasoline and hybrid business, and a decline in competitiveness in Asia.<\/p>\n<p>As part of the shift, Honda is canceling three planned EVs for the US market: the Honda 0 Saloon, the Honda 0 SUV, and the Acura RSX crossover.<\/p>\n<p>All three models were supposed to roll off the assembly line at the Marysville Auto Plant in Ohio.<\/p>\n<p>The move leaves Honda with just one fully electric vehicle in its US lineup \u2014 the Prologue, which it developed in partnership with General Motors.<\/p>\n<p>Acura, Honda&#039;s luxury brand, also discontinued its ZDX electric SUV at the end of 2025, shortly after the federal tax credit was scrapped.<\/p>\n<p>Still, analysts say the industry&#039;s recent pullback doesn&#039;t amount to a full retreat.<\/p>\n<p>&quot;No automaker is abandoning plans to sell EVs as a part of their product lineup,&quot; Goldstein added. &quot;While I see EV sales declining in 2026 from the tax credit expiration, I forecast a return to growth in 2027.&quot;<\/p>\n<p>Electric-only automakers are continuing to push forward with new models, including Rivian&#039;s coming R2 and Tesla&#039;s Cybercab, which could help lift overall EV sales.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/i.insider.com\/69b2cdfca96e437d6eb831e6?format=jpeg\" alt=\"A white Rivian R2 rolls onto a stage next to the automaker&#039;s CEO, RJ Scaringe.\"\/><figcaption>An industry analyst said he expects EV sales to return to growth in 2027 as automakers&#039; focus shifts to mass appeal. He pointed to the launch of smaller, more affordable vehicles, such as the coming Rivian R2.<\/p>\n<p>Phillip Faraone\/Getty Images for Rivian<\/p>\n<\/figcaption><\/figure>\n<p>Legacy brands are also betting that smaller, more affordable EVs could reignite demand.<\/p>\n<p>Toyota, Nissan, Ford, Chevrolet, and Subaru have all outlined plans to introduce cheaper electric models to US dealerships.<\/p>\n<p>Honda, for its part, still has one EV in the US pipeline: the Afeela, a screen-heavy sedan developed in partnership with Sony, expected to start around $89,900.<\/p>\n<p><em>Work at Honda? We want to hear from you. Contact Ben Shimkus at <\/em><em>bshimkus@insider.com<\/em><em> or Signal at bshimkus.41. Use a personal email address and a nonwork device; here&#039;s our guide to sharing information securely.<\/em><\/p>\n<p>Read the original article on Business Insider<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Honda is writing down $15.7 billion on its EV division. Artur Widak\/NurPhoto via Getty Images Honda said it booked a charge of up to $15.7 billion as it retreats from some EV plans. The Japanese automaker joins other global legacy automakers announcing billion-dollar EV charges. The Honda 0 Saloon, Honda 0 SUV, and Acura RSX [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[],"class_list":{"0":"post-47440","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-usa"},"_links":{"self":[{"href":"https:\/\/agooka.com\/news\/wp-json\/wp\/v2\/posts\/47440","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/agooka.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/agooka.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/agooka.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/agooka.com\/news\/wp-json\/wp\/v2\/comments?post=47440"}],"version-history":[{"count":0,"href":"https:\/\/agooka.com\/news\/wp-json\/wp\/v2\/posts\/47440\/revisions"}],"wp:attachment":[{"href":"https:\/\/agooka.com\/news\/wp-json\/wp\/v2\/media?parent=47440"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/agooka.com\/news\/wp-json\/wp\/v2\/categories?post=47440"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/agooka.com\/news\/wp-json\/wp\/v2\/tags?post=47440"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}