"Honda Japan announced that it's reorganizing and restructuring its operations to stave off losses, and the 0 Series is the biggest casualty. This comes in the face of record losses for Honda, namely because of US market tariffs and the way that Honda has lost out on Asian market competitiveness."
"Other manufacturers, mostly Chinese, are quick with very short development times and model cycles, with software-based features that resonate hard in Asian markets. These brands are meeting a hyper-competitive EV market faster than Honda itself ever could, as the company admits in the release, so it's giving up for now."
"Keep in mind that the 0 Series was a ground-up EV model developed by Honda itself. This model shares nothing with the GM-based Prologue or any of its China-based models. This was to be a brand new model, manufactured in Ohio."
Honda announced a major restructuring that cancels development of the 0 Series Saloon, 0 Series SUV, and Acura RSX globally, resulting in a projected $15.7 billion loss. The cancellation stems from record losses caused by US market tariffs and lost competitiveness in Asian markets, where Chinese manufacturers dominate with faster development cycles and software-based features. The slowing EV market expansion and inability to compete with faster-moving competitors forced Honda to halt these ground-up EV models. The 0 Series Alpha will continue production in select markets like India. The cancellation comes late in development, explaining the substantial financial impact, as these models were set for launch this year.
#honda-restructuring #ev-market-competition #product-cancellation #financial-losses #asian-market-competitiveness
Read at insideevs.com
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