Honda chief apologises for historic loss amid EV strategy shift
Toshihiro Mibe retains his board position despite facing severe shareholder backlash over a massive 423.9 billion yen deficit and abandoned electric car goals.
- Honda's CEO Toshihiro Mibe has apologized for the company's first financial deficit since 1957, a net loss of 423.9 billion yen.
- The historic loss was caused by a sudden reversal of its ambitious electric vehicle (EV) strategy, which involved shuttering a joint venture with Sony and pausing model development.
- Prompted by a global slowdown in EV demand, Honda is now shifting its focus to developing hybrid vehicles.
Following a drastic pivot away from its ambitious electric vehicle roadmap, Honda Motor Co. has recorded its first financial deficit since entering the stock market in 1957.
The sudden strategic U-turn, which involves effectively shuttering a collaborative EV venture with Sony Group Corp. and pausing various model development and launches since March, resulted in a staggering 423.9 billion yen net loss for the financial year concluding in March.
At a tense annual general meeting in Tokyo on Friday (June 26), President and CEO Toshihiro Mibe confronted irate investors. "I deeply apologise for the great concern and inconvenience we have caused," Mibe expressed to the attendees.
The backlash stemmed largely from what investors perceived as delayed executive action regarding the reversal of their EV strategy, with detractors arguing that "management had become rigid."
Before the assembly, 59-year-old Takuya Sato, a company veteran of over 30 years, publicly campaigned against the chief executive's continued tenure.
"He should take full responsibility," Sato asserted.
The Japanese motoring giant had previously pledged that its entire global new vehicle sales would be electric or fuel cell-powered by 2040.
However, this vision was derailed by a worldwide deceleration in EV appetite, which was further hastened by US President Donald Trump rolling back EV incentives.
Despite the fierce criticism and direct appeals for his dismissal, Mibe successfully maintained his leadership role.
Shareholders ultimately approved all 11 board nominees during the summit.
Moving forward, the manufacturer is shifting its focus to hybrid vehicles, targeting the worldwide launch of 15 new models by the 2029 financial year.
[Copyright The Jiji Press, Ltd.]
