Honda announced a 423.9 billion yen ($2.7 billion) loss Thursday in a first-ever negative result for the fabled Japanese automaker, reportedly driven by heavy costs for its electric-vehicle plans underscored by President Donald Trump’s pro-U.S. manufacturing policies.
AP reports the longstanding automaker – established in 1948 by Soichiro Honda – conceded the dire losses related to its EV operations are estimated to total 2.5 trillion yen ($16 billion), incurred mostly in the fiscal year just ended and the current fiscal year.
Analysts cited by the outlet detailed Honda Motor Co. plunged into an EV-dominant strategy when the market simply was not interested.
As a result, the Japanese carmaker has now abandoned many of its plans for EV models including those in the works in a joint venture with Sony Corp. as it seeks to find a way out of the financial hole it has dug for itself.
Hellbound and Down 