This time, Honda will post a full-year loss. The Japanese automaker is reeling, not just from electrics but from its gas models too. The CEO has already taken a personal pay cut, and the company is making drastic changes to turn the ship around.
Honda Could Lose A Little... Or A Lot
It's been clear for a few months now that Honda Motor Company was about to post its first full-year loss since it went public in 1957. The official results for the fiscal year ending March 31 aren't out yet, but the reports are already bad.
One of those reports said that the losses were 400 billion yen ($2.5 billion), and that was enough for Honda to make an official statement. Honda CEO Toshihiro Mibe issued a statement that the number would be confirmed May 14, and that it would be "within the range of the full-year consolidated earnings forecast announced on March 12, 2026."
The actual amount could be better or worse, though, as the prediction was for a loss after taxes of between 360 and 630 billion yen ($2.3 billion–$4.0 billion). Honda had expected a 360 billion yen ($2.3 billion) profit, still down from the 903 billion ($5.8 billion) it made last year.
Mibe is expected to announce a new plan to bring the company back to profit. Expect even more cuts, and acceleration of some that have already been announced.
Honda's already-announced cuts include killing off its electric plans entirely. The upcoming Honda 0 Series models and the Acura RSX are dead, the Sony Honda Mobility Afeela is dead, and the company has stopped work on an EV battery plant in Canada, with the company declaring its now-dead EVs wouldn't have been competitive. It also pulled out of at least one market – South Korea – completely.Now, Honda pretty much has no choice but to develop a new strategy. What does that mean?
Hybrids Will Be New Focus
The automaker has already said it expects to lose $16 billion related to its EV efforts. Honda points to the shift to EVs for the long term, as well as current impacts on its business "caused by the United States government policy shift" as reasons for the hit. In March, Mibe said that even its combustion vehicles were suffering because of a lack of investment.
Honda's four top execs gave up their bonuses for the year as well as 30% of their pay for three months. Other executives gave up 20% for the same time.
Honda's new focus will be on building more hybrid models. Mibe is expected to bring a new plan to the May 14 meeting, where he will lay out in more detail what Honda expects to do to turn around its fortunes and bring the company back to profit. Last year, Honda revealed a new V6-based hybrid system that is set for vehicles including the Pilot, Passport, and Ridgeline. The system is designed for towing and off-roading, and for reducing costs for the company, not just fuel consumption for drivers.
Other changes in the plan likely include reported model extensions of vehicles popular in the US, including the Acura MDX, Honda Odyssey, and Accord. There are also reports that Honda may push back its next-generation of advanced driver assists until 2028.
Related News
