Honda’s following in the footsteps of Ford, General Motors, and Stellantis in taking a massive bath on EVs. A key difference: Honda’s won’t even make it off the assembly line.
On Thursday, Honda announced it will kill the 0 Series SUV, Saloon, and Acura RSX EVs and discontinue development of said vehicles. The cancellation of these three EVs, their development, and production has Honda bracing for a $5.5 to $7.5 billion dollar loss.
In November in Japan, Honda CEO Toshihiro Mibe told journalists including The Drive that the automaker would produce the 0 Series SUV and then the Acura RSX, which was a reskinned version of the former, in 2026 in Ohio. The 0 Series Saloon was to follow in 2027.
Honda said the decision is part of a reassessment of the company’s electrification strategy due to market factors including changes in the business environment. Further, the automaker called out declining profitability in its automobile business due to “unfavorable impact of changes in the U.S. tariff policies on gasoline and hybrid vehicle business” and “a decline in the competitiveness of Honda product in Asia due to the impact of the allocation of more resources to EV development.”
Honda cited that previous stringent environment regulations implemented in the U.S. and other countries pushed the automaker to pursue EV adotion.
In February, the Trump Administration gutted the framework behind U.S. auto emissions reguilations. The administration also killed Auto Start/Stop.
In November, Mibe noted that the automaker will consider building and developing EVs that cost less than $30,000. It’s unclear if those plans are still under consideration. Mibe also confirmed Honda’s already built electric sports car prototypes.
All of Honda’s new EVs were riding on a new platform that was designed to bend on purpose in the name of better handling. But Honda’s next-gen gas cars will use similar technology in their platforms including the upcoming Civic Hybrid.
The radical-looking EVs that were to roll out of Ohio were purposely designed to look nothing like your neighbor’s Civic. The 0 Series Saloon looked like it was straight out of Star Wars with a wedge shape and some Lamborghini Countach vibes.
Enthusiasts were up in arms about the RSX resurrection being a reskinned 0 Series SUV. The high-riding electric fastback was a coupe-like SUV and nothing like the RSX enthusiasts loved, which replaced the Integra in the early 2000s.
Honda said it will lean into its hybridization strategy now with these three EVs being killed before ever leaving the factory. The automaker is putting the finishing touches on a clean-sheet V6 hybrid powertrain that will go into everything from the next-generation Pilot and Passport to the Odyssey, Ridgeline, and MDX.
Got a tip about a massive business shift? Send us a line at tips@thedrive.com