Honda Motor Co. reported its first annual net loss in nearly 70 years. The company posted a ¥414.3 billion ($2.63 billion) operating loss for the fiscal year. A massive writedown exceeding $9 billion triggered the deficit. This charge stems from a major restructuring of Honda's electric vehicle (EV) business.
Honda scrapped its goal to sell only EVs and fuel-cell vehicles by 2040. The automaker canceled three planned EV models to focus on hybrid technology. Manufacturing capacity in North America will shift toward petrol and hybrid production. Honda aims to launch 15 next-generation hybrid models by the fiscal year ending March 2030.
Honda shares surged despite the record loss. Investors reacted positively to the strategic pivot and a strong forecast for a return to profitability in the next fiscal year.