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[BUSINESS] · Japan, United States, Germany, United Kingdom, India · 4 sources

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Honda realigns global strategy to prioritize profitability over EV volume

Honda is implementing a global strategic realignment to prioritize profitability over market volume, following significant financial losses in its electric vehicle (EV) business. The company expects additional burdens of approximately 520 billion yen (3 billion euros) during the current fiscal year due to this corrected electrification strategy. As part of this shift, Honda has canceled planned EV models in North America and is scaling back its EV offerings in Europe, where the Super N micro-car will be the primary electric model, initially limited to the United Kingdom.

To reduce costs, Honda is pursuing technical collaborations with Nissan. According to CFO Masao Kawaguchi, the companies are discussing the joint development of hardware and software for software-defined vehicles, as well as potential cooperation regarding batteries, production systems, and manufacturing capacity. A formal merger between the two manufacturers is not currently planned.

In Europe, Honda President Hans De Jaeger stated that the company will focus on hybrid technology and specialized models to differentiate itself from competitors, particularly Chinese manufacturers in the mass market. Honda aims to increase its European sales volume to approximately 100,000 vehicles over the next two to three years. While Europe is not one of Honda's three primary focus regions—which are the USA, Japan, and India—the company plans to introduce 15 global models by 2030 that will benefit the European market.

Entities

Hans De Jaeger · Honda · Masao Kawaguchi · Nissan

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