The heavy cost of a strategic U-turn: Honda joins the global automakers' "de-electrification" massive loss camp

格隆汇 March 12｜Honda expects to face expenditures of up to 2.5 trillion yen due to a reassessment of its electric vehicle strategy, placing the Japanese automaker among the global brands severely impacted by setbacks in the transition to electric vehicles. The company announced on Thursday that it will cancel its original plan to develop and launch three electric vehicle models for the North American market. Honda anticipates a loss for the fiscal year ending in March to be between 270 billion yen and 570 billion yen. Just last month, Honda had warned of surging expenses related to its electric vehicle business, and its latest outlook aligns it with some of the industry's giants. Stellantis previously stated that, mainly due to reversing its electric vehicle strategy, it would incur costs exceeding 22 billion euros; Ford also announced that losses from its business adjustments reached 19.5 billion dollars.