Honda Motor reported its first annual loss in nearly 70 years as a listed company, hit by over $9 billion in costs to restructure its electric vehicle (EV) business. The automaker also scrapped its long-term EV sales targets.
CEO Toshihiro Mibe said Honda is abandoning its goal for EVs to make up 20% of sales by 2030 and a full shift to electric or fuel-cell vehicles by 2040. The company also suspended its $11 billion EV project in Canada indefinitely.
Despite the loss, Honda's shares rose 3.8% after pledging at least 800 billion yen in shareholder returns. The company expects a profit of 500 billion yen this year, driven by its profitable motorcycle business.
