What just happened? Honda has pulled the plug on three EVs – the Honda 0 SUV, Honda 0 Saloon, and Acura RSX – just months before they were set to enter production in the US. The company said the overhaul could lead to total losses of as much as $15.7 billion. The write-down is severe enough to leave Honda facing its first annual loss as a listed company in nearly 70 years.
At CES 2025, Honda said the 0 Saloon and 0 SUV would begin rolling out in 2026, with North America first: the SUV in the first half of the year and the Saloon later in 2026.
The Acura RSX was also penciled in for late 2026. Honda said it would be built at the Marysville Auto Plant in Ohio as part of the company's EV Hub. Honda had previously said that hub would begin EV production in late 2025 with the Acura RSX, followed by Honda 0-series models.
Honda has blamed the decision on a mix of collapsing EV momentum in the US, harsher competitive pressure in China, and the impact of newly imposed tariffs on the profitability of its gasoline and hybrid models.
The automaker also admitted it was unable to respond flexibly enough to changes in the market, saying customer priorities in China have shifted toward software-defined features and rapid iteration – areas where newer EV makers have gained a clear advantage.
Honda ultimately concluded that launching the three canceled EVs in the current climate would only pile on more losses over the long run.
In July 2025, it was reported that Honda had already halted development of a large electric SUV scheduled for 2027 and scaled back part of its EV investment, even while insisting the Honda 0 models were still on track for a US debut this year.
There was also Honda and GM's 2022 plan to co-develop millions of affordable EVs for 2027, a partnership that once looked like a major piece of Honda's North American EV strategy before it unraveled.
Reuters said this week that global automakers have booked more than $70 billion in EV-related writedowns over the last year as slowing US demand, price wars in China, and a broader shift back toward hybrids force companies to rethink their timelines.
Honda is now leaning into next-generation hybrids, motorcycles, and financial services while promising a revised mid- to long-term strategy in May.
In early 2024, it was reported that Honda was finally preparing to bring multiple zero-emission vehicles to the US, including the Prologue and Acura ZDX, after arriving late to the EV party. But the company has reversed course, canceling several of the vehicles that were expected to play a key role in its broader electrification plans.