Honda scrapped its planned Series 0 saloon and SUV models after facing major financial losses, according to the Japanese manufacturer.
The company blamed heavy losses and shifting US policies on electric vehicles for the decision. The cancellation comes just months before the Series 0 saloon’s planned launch.
These two models were supposed to lead Honda’s EV strategy in the US market.
Honda planned to build both vehicles in Ohio and sell them in America before launching anywhere else. The company designed them as the first models in what would become a seven-car Series 0 lineup by 2030 – all based on new lightweight architecture.
The automaker also cancelled the US-only Acura RSX alongside the Series 0 models.
“Starting production and sales of these three models in current business environment where the demand for EVs is declining significantly would likely result in further losses over the long term.”
Policy Changes Hit Development Plans
Honda partly blamed President Donald Trump’s policy reversals on EVs and protectionist tariffs for its financial troubles.
The company said it started the Series 0 project to meet “stringent environmental regulations” from Trump’s predecessor Joe Biden. But market conditions changed dramatically.
Honda noted that “the expansion of the EV market has slowed down due to several factors including the easing of fossil fuel regulations and revisions to EV incentives.”
The manufacturer’s overall car business is also suffering. US tariff changes are affecting its petrol and hybrid models, while competitiveness in Asia declined as Honda allocated more resources to EV development.
China Strategy Falls Short
Honda admitted its EV strategy in China failed completely.
The company blamed Chinese customers’ focus on software and technology rather than hardware. Honda couldn’t compete with the ultra-fast product cycles of software-defined vehicles from new Chinese EV brands.
This represents a significant shift for the previously innovative brand.
Financial Impact and Future Plans
Honda expects to record special losses of up to 570 billion yen (£2.7bn) this financial year due to the cancelled Series 0 projects and other challenging earnings situations.
Moving forward, the company will focus on hybrid models in its biggest markets – Japan and the US. It’s also planning new model launches in the growing India market.
Honda hasn’t indicated what these troubles mean for its European business.
The company currently sells only one EV in Europe – the e:NY1.
