Important upcoming electric cars cancelled: Eye-watering losses for Honda as global EV back-down intensifies

Honda has made the tough financial decision to cancel three electric vehicle programs in the face of a slower than expected global transition to EVs.

The Honda 0 SUV, 0 Saloon and Acura RSX were all scheduled to be produced in North America, but in a statement the Japanese maker said it "determined that starting production and sales of these three models in the current business environment where the demand for EVs is declining significantly would likely result in further losses over the long term."

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"Moreover, Honda expects to record special losses of ¥340 billion ($3.0B) to ¥570 billion ($5.0B) in the non-consolidated financial results for the same fiscal year. 

"Combined with the losses to be recorded in the current fiscal year, the total amount of losses is expected to be a maximum of ¥2.5 trillion ($22.2B)," it said. Yikes!

In summary, the statement confirmed, "The profitability of Honda automobile business is currently declining due primarily to 1) the unfavorable impact of changes in U.S. tariff policies on the gasoline and hybrid vehicle business and 2) a decline in the competitiveness of Honda products in Asia due to the impact of the allocation of more resources to EV development."

Expected to arrive in the second half of 2026, the dual-motor AWD Acura RSX was "a dramatically styled premium, performance SUV" noted at the time of the concept version’s unveiling at last year’s Monterey Car Week as “a significant next step in the performance brand's electrification strategy.

Honda said it was also "The first model engineered in-house on the new Honda-developed EV platform and the first EV produced at the Honda EV Hub flexible manufacturing facility in Ohio."

Shown for the first time in prototype form at the CES in 2024, as it was "being developed for a North American market launch in 2026", the Honda 0 Saloon was positioned as the flagship model of the Honda 0 Series.

In 2024 Honda said it would be "based on the newly developed dedicated EV architecture and feature a number of next-generation technologies that embody the ‘Thin, Light and Wise’ development approach" including "highly reliable Level 3 automated driving technology.”"

Also presented as a concept at the 2024 CES in Las Vegas, the oddly-proportioned Honda O SUV, also set for a 2026 introduction in North America, was a mid-size five-seater featuring “high-precision attitude estimation and stabilization control based on 3D gyro sensors”, technology that came out of Honda’s original robotics program.

Worth noting Honda retired its iconic humanoid robot, ASIMO in early 2022 after a 22-year development focus.

Honda said it will now direct electrification investment into hybrids with a new hybrid powertrain and automated driving system under development for commercialisation after 2027.