Honda is killing its EVs – and any chance of competing in the future

7 hours ago

Honda has discontinued its electric vehicle (EV) programs, including the Acura RDX, Honda 0 sedan, and SUV, as well as the GM-built Prologue.
The company blames U.S. tariffs and Chinese competition but lacked a viable EV strategy from the start.
Honda risks falling behind in key industry shifts: electric drivetrains and software-defined vehicles (SDVs).
Legacy automakers like Honda often treat EVs as just cars with different drivetrains, leading to inefficient and costly designs.
EVs developed from scratch offer cost-saving opportunities, unlike modified fossil fuel platforms (e.g., Ford Mustang Mach-E).
Honda misses learning opportunities in EV manufacturing, supply chains, and customer feedback.
Software-defined vehicles (SDVs) are another area where Honda lags, as it hasn't made progress in over-the-air updates or advanced infotainment.
Honda faces an identity crisis as its strengths—internal combustion engines and driver-focused cars—become less relevant.
EVs promise higher reliability and lower costs, threatening Honda's competitiveness, especially against Chinese automakers.
Honda's losses in China ($16 billion in 2023) highlight its declining competitiveness in the EV market.

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