Honda Motor expects charges of up to ?2.5 trillion ($15.7 billion) as it rethinks its electric vehicle strategy, with the Japanese carmaker joining a growing list of global brands battered by the unraveling EV transition.
The carmaker said Thursday that it would cancel the development and launch of three EV models that had been planned for North America. Honda forecasts losses for the fiscal year ending March will be between ?270 billion and ?570 billion.
Just last month Honda had warned of surging expenses related to its EV business, but the latest announcement lays bare the immense cost of being caught out by slowing demand for new-energy cars. Its estimate puts it alongside Stellantis NV, which is taking more than €22 billion ($25 billion) in charges mainly linked to reversing course in its EV strategy, and Ford Motor¡¯s $19.5 billion hit from its overhaul.
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