By Daniel Leussink
TOKYO, March 12 (Reuters) – Honda warned on Thursday that it would tumble to a full-year loss, hit by restructuring to the tune of $15.7 billion at its EV business in the next few years, the latest automaker to flag rising pain as demand for the technology wanes.
Under President Donald Trump, Washington has pulled the plug on government support for EVs, forcing the likes of Ford and Stellantis to rethink their strategies.
Japan’s second-largest automaker said it expects to take a hit of 2.5 trillion yen ($15.7 billion) over the next few years to restructure the EV business.
CEO Toshihiro Mibe told a press conference the automaker would scrap development of some planned EV models and instead put more effort into hybrids, demand for which has surged in the United States and elsewhere.
The Japanese automaker now expects to lose as much as 570 billion yen ($3.6 billion) in the year to the end of March, versus a previous forecast for a profit of 550 billion yen.
Mibe and Executive Vice President Noriya Kaihara will voluntarily forego the equivalent of 30% of their compensation for three months while some other executives will forego 20%, the automaker added.
Honda plans to announce a revamped mid-to-long-term business strategy in the next fiscal year.
($1=158.8900 yen)
(Reporting by Daniel Leussink and Kantaro Komiya; Editing by Clarence Fernandez and Christopher Cushing)
