Honda Motor says it expects to book a consolidated net loss of up to 690 billion yen, or about 4.3 billion dollars, for the fiscal year ending in March following a reassessment of its automobile electrification strategy.
The automaker says this will be the first full-year net loss since the company went public.
Honda says it has decided to cancel the development and market launch of three electric vehicle models it had planned to produce in North America.
The firm says the corporate group as a whole is expected to post a consolidated net loss of between 2.6 billion and 4.3 billion dollars for the fiscal year that ends in March.
The group had previously forecast a net profit of about 1.8 billion dollars.
The automaker says it could incur total losses of up to 15.7 billion dollars after accounting for losses in fiscal 2026 and beyond.
Honda President Mibe Toshihiro says he will take a 30 percent voluntary pay cut for three months.
Mibe said in an online news conference that a number of factors were involved in the decision, including a slowdown of the electric vehicle market and the emergence of new manufacturers.
He says automakers as a whole appear to have reached a critical turning point. He says the decision was painful but necessary to avoid leaving burdens for the future.
The EV market in the United States is decelerating due to such factors as the removal of tax incentives by President Donald Trump’s administration.
Automakers are being forced to fundamentally review their EV strategies. Ford Motor and General Motors have already posted massive expenditures and losses.
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