With global demand for all-electric vehicles waning behind expected levels of growth, Ford is among many automakers that have subsequently dialed back investments in that particular area. The Blue Oval has pivoted away from larger, pricier EVs and is instead focusing on lower-cost models that aren’t quite as tech-heavy, all while placing more of an emphasis on hybrids. Now, Honda has become the latest automaker to push some of its EV ambitions after the Japanese automaker posted a massive profit loss in its current fiscal year.
“The growth of the electric vehicle market has slowed more than initially expected, making it difficult to anticipate further progress,” CEO Toshihiro Mibe said while announcing Honda’s fiscal-year financial results, according to Automotive News. “Therefore, we have decided to postpone large-scale investments in Canada.” Mibe added that this delay will last for at least two years, impacting a planned EV hub that was slated to be built in Ontario.
Additionally, Honda plans to shift production of its popular CR-V crossover from Ontario to the U.S. as a way to circumvent tariffs imposed by the Trump administration. Back in April, the automaker announced that it also planned to shift Civic hybrid production from Japan to the U.S., while its Canadian plant that builds both the CR-V and Civic was previously slated to be retooled for the production of next-generation EVs.
These changes come as Honda is forecasting a whopping 59 percent drop in operating profit, a development it largely attributers to tariffs – which it expects to have a $4 billion dollar negative impact on its business. Honda expects U.S. imposed tariffs to shave roughly ¥650.0 billion ($4.34 billion USD) off its operating profit in the fiscal year that ended at the conclusion of March. On top of that, Honda’s failed merger talks with Nissan earlier this year left it changing gears, but currently, it has no plans to revive those discussions as it focuses on righting the financial ship.
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