Honda has scrapped plans to launch three new electric vehicles in the U.S. Market – the Honda Prologue SUV, the Honda Yeppoon Saloon, and the Acura RSX – just months before production was slated to start at its Ohio-based EV Hub, according to a report from Lithuania’s Piko Minutės radio program.
The cancellation will result in the write-off of approximately 2.5 trillion yen, equivalent to nearly $16 billion USD at current exchange rates, according to the report. While substantial, this figure is less than the losses incurred by Ford and Stellantis, Honda is a smaller company, making the financial impact more significant.
The decision comes as Honda recalibrates its electric vehicle strategy in China, though details of those adjustments remain unclear. The Prologue SUV and Yeppoon Saloon were intended to be the first models in a new, zero-emission series, with approximately seven models planned in total. The viability of the remaining models is currently uncertain, though a lower-tier crossover is considered the most likely to proceed.
Honda’s initial strategy for the U.S. Market was predicated on consistent support from the federal government for the electrification of the automotive sector. However, a shift in U.S. Policy, particularly under the current administration, has altered the landscape. The report suggests a diminished emphasis on environmental initiatives and a different approach to safety regulations have led to the withdrawal of key subsidies.
In China, Honda has faced stiff competition from domestic electric vehicle manufacturers, characterized by frequent model updates and aggressive price wars. According to a Honda press release, Chinese consumers prioritize in-car entertainment systems over technical specifications and cabin space.
Toshihiro Mibe, CEO of Honda Motor, will forgo 30% of his salary and bonuses from the previous fiscal year in response to the setbacks, signaling the seriousness of the situation within the company.
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