Honda scraps three EVs: no 0 Series SUV, Series Saloon and Acura RSX

The models dropped effective immediately are the Honda 0 Series Saloon, the Honda 0 Series SUV and the Acura RSX EV. These vehicles, whose first prototypes were presented with much fanfare at last year’s CES trade show in Las Vegas, were supposed to kick off Honda’s new generation of electric cars.

Billion-dollar losses and market pressure

The cancellation comes at a painful time for the manufacturer. Honda expects to incur significant write-offs of assets and development costs due to the discontinuation of these projects. The total cost of the strategic realignment could reach as much as 2.5 trillion yen (about 15.7 billion euros).

Honda cites changing market conditions in the United States as the immediate cause. “The expansion of the EV market has slowed due to the relaxation of fossil fuel regulations and changes in incentives for electric drivers,” the company said in an official statement. In addition, the manufacturer is facing fierce competition in Asia, particularly from China, where local brands are bringing new technologies to market faster and cheaper.

Focus back to hybrid

Instead of betting everything on all-electric, Honda now appears to be returning to the safe haven of hybrid technology. The freed-up funds will be allocated in part to strengthening the hybrid portfolio, a segment Honda has traditionally been strong in and where demand currently appears more stable than for all-electric models.

Despite the large losses, Honda maintains its dividend forecast for the current fiscal year. However, the group’s top executives, including the CEO and Executive Vice President, have announced they are giving up part of their bonus as a sign of responsibility for the disappointing results.