Honda Reports First Loss in Decades Thanks to EVs
The hype around electric vehicles that has filled headlines for years is facing economic reality. The latest example is Honda, which is canceling the launch and development of certain EV models after demand in North America failed to meet expectations. The company now expects its first annual loss in decades, projecting a net loss of between $2.8 billion and $4.6 billion for the fiscal year ending March 31.
Honda isn’t the only one. The Wall Street Journal reports,
“Jeep maker Stellantis said in February it would book charges of about $26 billion. Ford took a $19.5 billion hit in December, while General Motors in January reported a $6 billion charge. Honda on Thursday projected a net loss of between Y420 billion and Y690 billion for the fiscal year, down from its previous net profit forecast of Y300 billion. That would be the first annual loss since the company started reporting its consolidated results in 1977. It maintained its annual revenue forecast at Y21.100 trillion.”
In February, the Trump administration repealed the Obama-era Greenhouse Gas “Endangerment Finding,” removing expensive EV mandates. For automakers, the message is clear. The future of transportation will likely be diverse and driven by consumers, not by political schedules. As Honda’s multibillion-dollar reset shows, when companies pursue mandates instead of markets, the costs can be huge.
March 12, 2026