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Honda Posts First Loss Since 1957 in EV Retreat

Is Honda's EV retreat a catastrophic collapse or a disciplined strategic reset toward record profits?

Published 2 days ago

Honda Posts First Loss Since 1957 in EV Retreat

Story

Above: The new hybrid sedan prototype displayed at a news conference in Tokyo, Japan, on May 14, 2026. Image credit: Kiyoshi Ota/Bloomberg/Getty Images

The Spin

Narrative A

Honda's historic 400 billion yen collapse was driven by a reckless EV bet that torched billions and left retooled Ohio factories stranded. The industry's collective EV retreat now totals roughly $67 billion, proving this wasn't bad luck but a fundamental miscalculation. Honda got outcompeted in China, canceled its entire North American EV lineup and is now scrambling to pivot back to hybrids.

Autoblog ZeroHedge

Narrative B

Honda has a concrete, fully detailed plan to not just recover but hit an all-time high operating profit of more than 1.4 trillion yen by fiscal year 2029. Fifteen next-generation hybrid models are launching globally, development costs are being cut in half and motorcycle and financial services businesses are already generating strong cash flow. This is a disciplined strategic reset, not a collapse — and the numbers back it up.

Honda Honda Canada Corporate Newsroom