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Transportation United States

Honda Cancels All Three EVs That It Planned To Build In the US (caranddriver.com) 156

sinij shares a report from Car and Driver: 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 [of up to $15.8 billion]. 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.

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.

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Honda Cancels All Three EVs That It Planned To Build In the US

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  • by leonbev ( 111395 ) on Thursday March 12, 2026 @03:09PM (#66037700) Journal

    I don't think that Honda ever wanted to build those EV's in the US, but was probably required to by the prior administration to at least attempt to meet the EPA's alternative fuel and fleet fuel mileage requirements. Now that those regulations are gone for at least the next 2 1/2 years or so, there really isn't any pressure to build these vehicles.

    • by whitroth ( 9367 )

      (rolls eyes). Yeah, sure, they were investing billions in building the plants and assembly lines, but only the subsidies were going to make the money. (Subsidies, right: I'm on social security, and pay no federal taxes, so when I bought my PHEV last year, I got nothing.) And people only buy an EV or PHEV just for the tax break.

      That EV Mustang we just saw this morning looked interesting...

  • by JustAnotherOldGuy ( 4145623 ) on Thursday March 12, 2026 @03:27PM (#66037738) Journal

    And yet another fabulous win for Trump. So. Much. Winning.

    • by rsilvergun ( 571051 ) on Thursday March 12, 2026 @04:41PM (#66037900)
      It is absolutely a win for Trump. Now for everybody else not so much. But nothing else matters except Trump. Even if you have a family that you care about the most important thing is Trump because he is such a great man that as he wins you will inevitably win with him.

      It's like when you send your seed money to the TV preacher. You just know it's going to come back tenfold. It's the same principle.
    • It's a win for consumer choice, not for Trump. His policies regarding EVs are that consumers should be able to choose if they want one or an ICE vehicle. The government should not be subsidizing a product that cannot sell without the government giving a significant subsidy nor should the government be forcing a transition when EVs are not a practical option for many use cases.

      I have nothing against EVs. I actually own two. But I also recognize they're not ready for mass acceptance. They need market for

  • by FudRucker ( 866063 ) on Thursday March 12, 2026 @03:46PM (#66037774)
    For both domestically manufactured products and imported, even domestically made products will have to import material, 50 years of global trade can not be erased in a couple years, I don't think Trump gives a darn about where a product is made he just wants to extract as much wealth as he possibly can

    The USA started out as a federal republic but has since degenerated into a kleprocratic neo-feudalist banana-republic run by a criminal mafia oligarchy
    • by rsilvergun ( 571051 ) on Thursday March 12, 2026 @04:43PM (#66037910)
      If you know something about the American budget reconciliation process.

      With a legislative process called budget reconciliation you can pass bills with a simple majority in the Senate that cannot be filibustered. The catch is they have to be budget neutral. You can't increase the national deficit or debt.

      So to do the billionaire tax cuts Trump wanted he needed the tariffs. The tariffs were basically taking money out of your pocket and putting it in his and in the pockets of the billionaires like Elon Musk that paid to elect Trump.

      In that sense the tariffs were incredibly successful. They took billions of dollars out of your pocket and mine and put them directly into Trump and his buddy's pockets.
      • In that sense the tariffs were incredibly successful. They took billions of dollars out of your pocket and mine and put them directly into Trump and his buddy's pockets.

        That is not possible. No Democrats spoke up and we all know they would fight tooth and nail to prevent such a thing from happening. And they didn't, so it didn't happen.

        • You weren't listening because you only consume right-wing media. It's not your fault billionaires have purchased 90% of all media so it's very difficult to consume media that isn't right wing.

          But they are out there trying to get through to you you're just not hearing it.
          • by DaPhil ( 811162 )

            While I consider myself to be "left" I think that the idea that 90% of "the media" was bought by "the right" is outright paranoia.

            Up to a couple of years ago the main complaint was that "the left" controlled the media - and now it's turned around completely?

            I am based in Europe though, where "the left" still pretty much owns the field - to the great annoyance of our own "right" parties. So YMMV.

    • by Baron_Yam ( 643147 ) on Thursday March 12, 2026 @04:45PM (#66037916)

      If only this had been predicted... by people the average voter would listen to. It was screamed by a lot of people, both experts and educated lay people pointing to historical precedent, but apparently that wasn't enough.

  • I think Toyota and Honda are two auto-makers that have stood out for their excellence in building hybrid vehicles that are truly reliable, at reasonable price-points.

    Full EVs don't necessarily seem like they're so relevant for them to build, even if both have dabbled in it a bit.

    Right now in America? The reality is, apartment and condo dwellers typically have no good option to charge an EV at home. Some may make do with a workplace that provides EV charging in their parking lot or garage. But even that prob

    • by 93 Escort Wagon ( 326346 ) on Thursday March 12, 2026 @04:01PM (#66037796)

      I don't see a need for any auto maker to rush to try to build more EVs just for the sake of change? The market forces will dictate the real demand, and the people with the best quality offerings at fair prices will get the lion's share of those sales.

      The last thing Trump wants is for actual market forces to dictate anything - hence the tariffs.

    • The market forces will dictate the real demand

      Virtually nothing in the transport industry is left up market forces alone. Virtually every part of the supply chain for every component in the concept of transportation is manipulated in some form by government intervention or regulation. That goes for EVs as much as Gasoline.

    • Right now in America? The reality is, apartment and condo dwellers typically have no good option to charge an EV at home.

      Well, that could be a problem, seeing as apartment and condo dwellers typically have perfectly good options to install their own oil wells and refining plants. Right?

      This may come as a surprise to you but, you can recharge EVs at service stations, just like old-fashioned combustion vehicles.

  • Makes sense ... (Score:5, Interesting)

    by SpinyNorman ( 33776 ) on Thursday March 12, 2026 @03:56PM (#66037786)

    It's a very rational response, and certainly impossible for a business to plan when the rules (e.g. tariffs) are changing on a daily basis

    Certainly China seems far ahead of everyone, US as well as Japan, in being able to build low-cost desirable EVs.

    Of course the tariff playing field is far from level, and Trump is likely to flip-flop on what he's imposing on which country based on what he had for lunch, what presents they've sent him, etc.

    It may be that even though China is the low-cost producer than Japan still has an advantage in the US market because Trump is choosing to penalize them less than China, but that can change in a heartbeat and therefore isn't something that it makes sense for a manufacturer to plan around. Even if Trump made some "commitment" to Japan over tariffs, his words are meaningless, as I'm sure the whole world is well aware.

    In the meantime, the official goal of tariffs is supposedly to encourage domestic manufacture, but Trump's buddy Musk doesn't seem to be stepping up to the challenge, no anyone else. The car manufacturers have all learnt that it's more profitable to sell fewer expensive SUVs than more entry level cars, and new cars in the US are increasingly becoming a luxury item than many can no longer afford.

    • new cars in the US are increasingly becoming a luxury item than many can no longer afford.

      New cars are becoming like new houses. All the profit is on the upper end. Everyone else can buy used, if they can even afford that. This has been happening with housing for far longer and a workable fix hasn't shown up yet.

      • It's not broken for the people that matter. The other 90% of us don't matter. Hence, in the eyes of government and their financial backers, there is nothing to fix. Working as intended.

    • "Certainly China seems far ahead of everyone, US as well as Japan, in being able to build low-cost desirable EVs."

      Disclaimer: I'm basing my response on a number of videos and reporting from only a few sources, but...

      If the videos (smuggled?) out of China are even half true, then China can certainly crank out a lot of low-cost EVs, but they have a real quality control problem. Lots of reports/videos of EVs bursting into flames while charging, while just parked and while being driven. That high of a percentag

      • Maybe some are like that, but have you seen Marques Brownlee's review of the Xiami SU7 ? High end, high quality. Priced at equivalent of $40-45K, and in Marques opinion competitive with anything here at $70-75K point.

        Tesla's aren't exactly flawless in this respect either - plenty of reports of fires and recalls like Cybertruck glued-on body panels falling off.

      • It seems China is trying to make us forget about how well-known their quality control is by just flooding the markets with cheap shit. Here in NZ 'BYD' is very popular and affordable. Time will tell, I suppose. But I was in the market for an EV not long ago and a key requirement was "is not made in China" (which also counted against the Honda enY:1 although Honda still have a reputation here as being reliable).
      • China is perfectly capable of making quality items. It's only the bottom tier zero margin stuff that America is addicted to. If you started making cell phone chargers domestically and bought the absolute cheapest model you would get the exact same quality as China.

      • by shilly ( 142940 )

        You can't rely on fucking anecdotes for this kind of thing. You need some actual data. All the data points in the opposite direction, and in line with what one would expect: low cost Chinese EVs use LFP batteries because those are cheap, and LFP batteries do not have any thermal runaway issues.

  • Problem is the rules (Score:5, Interesting)

    by gurps_npc ( 621217 ) on Thursday March 12, 2026 @04:18PM (#66037840) Homepage

    The rules for car manufacturing require them to meet pollution rules. But they managed to get higher pollution amounts for larger cars. Then they proceeded to make bigger and bigger cars. Which resulted in larger prices.

    Now the US cars are too big for anyone outside of the US to buy. Nobody wants vehicles that big and expensive if they have a choice of smaller cars.

    With the current inflation, even US citizens do not want the large, expensive US made cars.

    The solution is obvious - require all cars, regardless of size, to meet the tight pollution rules for the smaller cars. We can still make the larger cars, just expect a lot more electric vehicles.

    • They are only stopping EVs in the USA which are under attack. They can make more money selling crap ICE cars Americans want while trying to survive the global EV market. Write it down as a loss... but actually make more money. It's not like they are stopping EV completely.

  • by Stolovaya ( 1019922 ) <skingiii@nOSpam.gmail.com> on Thursday March 12, 2026 @04:36PM (#66037890)

    ...that the nonsense around Hyundai and the ICE raid at that Georgia plant really didn't help.

    https://www.usatoday.com/story/news/nation/2025/11/08/korean-americans-foreigners-biggest-ice-raid-hyundai/86950317007/

  • Cancels EV plans... (Score:4, Interesting)

    by locater16 ( 2326718 ) on Thursday March 12, 2026 @05:22PM (#66037990)
    -the week gas prices shoot up 25% due to a war. Nice.
  • "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."

    This makes no sense. The only reason to build cars in the US is to sell to the US market. While there are a few minor models available in the US that are made by companies with Chinese owners, there is essentially no Chinese competition in the US market because the all major Chinese mod

    • So Honda should go all in on Trump never ever changing his mind about which countries he likes? Lol.
    • They know better when they say something that idiotic it's likely another message is being sent. Or some translator is drunk. While if the USA says something idiotic we all just assume it is within character.

  • They should have first announced that the vehicles would be built in a deep-red state like Alabama or an important swing state like North Carolina or Arizona. Then they would announce the cancellation and discuss mass layoffs and have the panicked MAGA governors put pressure on the administration to ease up at least for Honda. In the end in Georgia, they were practically begging the Koreans not to pull the plug after the ICE raid they pulled.

We all agree on the necessity of compromise. We just can't agree on when it's necessary to compromise. -- Larry Wall

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