According to the automaker, the Honda 0 Saloon, Honda 0 SUV and Acura RSX Electric have all been scrapped despite serious investment costs.
Allegedly, the company had spent $7.5 billion USD on developing the futuristic-looking sedan and crossover pair before realizing that it wouldn’t ever pay off. It had also invested around $8.2 billion into the all-electric Acura RSX and other electrification-related research and development. Thus, the total losses come up to $15.2 billion.
Commenting on its poor performance over the past few years, Honda pointed out growing pressure from Chinese automakers and its own restructuring as the main reasons. It didn’t help matters that the United States chose to introduce tariffs and slash EV benefits, either.
With the company’s EVs officially dead in the water, its Ohio assembly lines may end up underused to some extent. Just how bad the situation is in unclear, but Honda’s operational profits for the past fiscal year plummeted by 61.4% to $987 million.
In response to an inquiry made by Carscoops, a Honda representative explained that the decision to scrap its EV plans came “as early as possible,” and that “starting production and sales of these three models in current business environment” would most probably culminate in “further losses over the long term.” As bad as the situation may look right now, the explanation actually makes it sound like a bigger fiasco was avoided. That, at least, is commendable.
