economy
March 13, 2026
Facing heavy losses, Honda cancels its three US-made electric vehicles
Tariffs, torn-up US emissions regs, and being uncompetitive in China are all to blame.
TL;DR
- Honda faces financial losses of $5.1 billion to $7 billion for the fiscal year.
- Three new electric vehicles (Honda 0 SUV, Honda 0 sedan, Acura RSX) have been cancelled.
- Reasons cited include trade war tariffs, changes in US emissions standards, and inability to compete in China's EV market.
- Chinese market demands focus on software features and rapid updates, areas where Honda struggles.
- Weak EV demand in the US, exacerbated by the end of federal tax credits, also contributed to the decision.
- Honda will increase its hybrid offerings in the US and reassess future EV launches based on demand and profitability.
- Senior executives will take voluntary pay cuts of 20-30 percent for three months.
Continue reading the original article