Honda's First Annual Loss In Nearly 70 Years; $15.7 Billion Loss As It Cancels 3 EV Models

[Hightech88]

 

[syed putra]

Its EV are ancient compared to those from China.

 

[superpower]

https://www.motor1.com/news/792130/honda-reacts-china-supplier-strength/

'We Have No Chance Against This': Honda Reacts To China's Supplier Strength​

Honda’s CEO delivered this stark verdict after touring an auto supplier factory in Shanghai.​

By: Adrian Padeanu
Apr 6, at 5:19am ET

THE BREAKDOWN​

• Honda President Toshihiro Mibe recently visited an auto supplier factory in Shanghai.
• Upon returning to Japan, he told suppliers, 'We must act quickly' to speed up production.
• In 2025, Honda's sales in China fell for the fifth consecutive year.

It’s safe to say that Honda is in a bit of a pickle. It recently canceled two of its own electric vehicles, the 0 SUV and 0 Sedan, along with the Acura RSX revival. It will book up to $15.8 billion in losses, and that’s not all. The two Afeela-badged EVs it had been developing with Sony are also dead on arrival. It’s an alarming sign of how some traditional automakers are struggling to create a profitable business case for electric cars.

But the issues go deeper than just EVs. As with most long-running nameplates, Honda is having a hard time remaining competitive in China. Sales have collapsed in just a few years, from a peak of 1.62 million in 2020 to only 640,000 units in 2025. Only about half of its manufacturing footprint is being utilized, well below the 70–80 percent typically needed in the automotive industry to turn a profit. For 2026, annual output is projected to drop below 600,000 units.

Honda CEO and President Toshihiro Mibe recently traveled to China to gain insight into how domestic companies are churning out so many products in such a short timeframe. After visiting an auto supplier factory in Shanghai, he made a stark remark: “We have no chance against this," Nikkei Asiareports.

China Develops A New Car In Two Years​

You might have heard about “China Speed” and how local automakers can develop a brand-new model in two years or less. By comparison, legacy brands often need twice as long, and sometimes even more, to engineer a new product. With an astronomical number of companies developing vehicles at a record pace, it’s no wonder it feels like China is launching a new car every other day.

Chinese suppliers are not only able to match this pace but also do so with cost efficiency that the industry’s biggest names can only dream of. Mibe’s statement shouldn’t be seen as an admission of defeat, however. Upon returning from China, Honda’s CEO told suppliers, “We must act quickly” to accelerate development.

To that end, Honda is restoring its independent R&D division by relocating thousands of engineers to a newly established engineering subsidiary. It is expected to operate with greater autonomy than in the past six years, when development was centralized, and headquarters called the shots. Whether this added creative freedom will turn things around remains unclear, though it’s reasonable to assume that major decisions will still be made at HQ.

 

[syed putra]

Chinese cars are forever evolving. When there are customers complain about certain features or short comings, they rectify it almost immediately and next few days the parts are already being fixed on the assembly lines .

 

[congo9]

Chinese car doesn't test.

 

[syed putra]

Chinese car doesn't test.

You'd be surprised. Its built solid. Its weldings are full unlike some cars they just do spot welding. Doors feel solid and heavy, like german luxury brands, at price lower than Japanese cars.

 

[syed putra]

Even BMW stand no chance.

 

[syed putra]

More china cars. This one by BAIC. Beijing.

 

[worcer]

Japanese dun know how to do business against china...

 

[duluxe]

You'd be surprised. Its built solid. Its weldings are full unlike some cars they just do spot welding. Doors feel solid and heavy, like german luxury brands, at price lower than Japanese cars.

What car are you driving?