Honda cancels three North American EV programs, including two 0 Series models.
Automaker warned the overhaul could create up to ¥2.5 trillion (CDN$21.4 billion) in losses.
Honda redirecting investment toward hybrids, local sourcing and battery-production flexibility.
Honda has cancelled three EVs intended for North American production, making this one of the sharpest reversals yet in the industry’s ongoing retreat from earlier EV expansion plans.
The programs being dropped are the Honda 0 SUV, Honda 0 Saloon and Acura RSX, all of which had been tied to the company’s next phase of EV manufacturing in the region. Honda disclosed the decision March 12 as part of a reassessment of its automobile electrification strategy.
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The financial impact is substantial. Honda said the reset could generate up to ¥2.5 trillion (CDN$21.4 billion) in expenses and losses over multiple fiscal years. For the fiscal year ending March 31, 2026, the company now expects a net loss of up to ¥570 billion (CDN$4.9 billion), reversing a previous profit forecast and marking Honda’s first annual loss since going public in 1957.
The decision is tied to several pressures hitting at once. Honda said U.S. EV market growth has slowed because of regulatory changes and revised incentives. It also pointed to tariffs and to weak sales in China.
The company now plans for more hybrids. Executive Vice President Noriya Kaihara said Honda is developing a next-generation hybrid powertrain and automated driving system for commercialization after 2027. In North America, Honda also plans to increase the local procurement ratio for components and vehicles tied to that upcoming hybrid lineup.
For Canada, the latest decision adds another layer to a strained North American EV plan. Nearly two years ago, Honda announced huge investments in Ontario, including assembly and battery production, but these plans were put on ice for a few years as EV demand slowed.
Honda executives are also taking temporary pay cuts. CEO Toshihiro Mibe and Kaihara will forfeit 30% of their compensation for three months, while other executives will take a 20% reduction over the same period.
