Honda swings to major loss after EV plan cuts
Honda Motor Co. said it expects to record a net loss of between 420 billion yen and 690 billion yen (about $4.34 billion) in fiscal 2025 ending this month.
The Japanese automaker revised its outlook from an earlier forecast of a 300 billion yen net profit after canceling the development of several electric vehicle models that had been planned for production in North America, News.Az reports, citing foreign media.
Honda also said its chief executive officer and vice president will take a 30 percent monthly pay cut for three months in fiscal 2026 as they take responsibility for the projected losses.
The company now expects an operating loss of between 270 billion yen and 570 billion yen in fiscal 2025, compared with its previous estimate of a 550 billion yen operating profit.
Honda added that it plans to reduce its investment in electric vehicles through fiscal 2030 from 10 trillion yen to 7 trillion yen, citing pressure from high U.S. tariffs and weak global demand for EVs.
News.Az
By Nijat Babayev
