Honda Halts 0 Series EVs Amid $15.7 Billion Restructuring Blow

Honda Motor has halted the development of the Honda 0 Series Saloon and Honda 0 Series SUV electric models, as well as the Acura RSX EV crossover. The decision was made as part of a major business restructuring.

What is known

According to the company, the reason was growing losses related to tariffs in the US market and decreasing competitiveness in Asia. In the region, pressure from Chinese manufacturers, who are quicker to release new models and actively develop software features for electric vehicles, has intensified.

The development of all three models has been ceased globally, including the US market. Previously, the launch of the Honda 0 Series Saloon had already been postponed to at least 2027, but other vehicles in the line were expected to hit the market earlier.

The 0 Series was supposed to be a completely new platform for electric vehicles, developed by Honda itself. These models were not associated with the Honda Prologue crossover, created in collaboration with General Motors, and did not share components with the Chinese versions of the brand's cars. Production was planned to be organized in the USA.

The cancellation of the project will lead to significant financial losses. According to the company's estimates, the overall impact from restructuring and asset write-offs could reach 1.2 trillion yen (about 15.7 billion dollars), including losses from business reduction in China.

Nevertheless, some developments may still continue. The previously presented Honda 0 Series Alpha prototype is planned to be brought to serial production for certain markets, including India and some Asian countries.

In the coming years, Honda intends to focus on the development of hybrid models. The brand's strategy in the fully electric vehicle sector remains uncertain.

Source: Honda