- Honda is canceling the development and sale of the 0-Series SUV, 0-Series Saloon, and Acura RSX, all of which were going to be built in the United States.
- The automaker explicitly called out American tariff policies and the volatile policy environment surrounding EV incentives and fossil fuel regulations.
- Honda is projecting massive profit losses as a result of the decision, and is having some top executives return a portion of their salaries as a result.
Honda is making a monumental shift in its business plans. The automaker is canceling the development and launch of the 0 Series SUV, the 0 Series saloon, and the Acura RSX, and as a result, expects to take a significant financial hit in 2026.
The automaker was blunt in its announcement of the changing plans, citing American tariff policies and the unpredictable nature surrounding American EV incentives and fossil fuel regulations. In its release marking the announcement, Honda made it clear that it expected to incur further financial losses over the long term if it went through with launching the cars.
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Honda also called out changing customer values in China, with buyers focusing more on software features and less on things like fuel efficiency and cabin space. In its release regarding the changing product plans, Honda was shockingly blunt about its situation, saying that it was simply unable to deliver products that offer a better value than that of newer Chinese manufacturers.
Both Hondas and the Acura were planned to be built at Honda's manufacturing facility in Ohio, which has been retooling for much of the past two years. Rather than launch the three new models, Honda provided vague plans to establish a "fixed-cost structure appropriate for the scale," regarding the future implementation of electric models.
In light of the canceled models, Honda is preparing to record sizeable financial losses that could amount to up to $15.8 billion. Due to the economic situation, several top executives are returning or reducing their salary by up to 30 percent of their monthly compensation for three months. The automaker is planning to announce a revised mid- to long-term strategy at a press conference scheduled for May of this year.
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Jack Fitzgerald’s love for cars stems from his as yet unshakable addiction to Formula 1.
After a brief stint as a detailer for a local dealership group in college, he knew he needed a more permanent way to drive all the new cars he couldn’t afford and decided to pursue a career in auto writing. By hounding his college professors at the University of Wisconsin-Milwaukee, he was able to travel Wisconsin seeking out stories in the auto world before landing his dream job at Car and Driver. His new goal is to delay the inevitable demise of his 2010 Volkswagen Golf.
