Honda Scraps Zero Series EVs Amid 'Extremely Challenging' Finances

Honda is cancelling its Zero Series SUV and Saloon, as well as the Acura RSX EVs, citing an "extremely challenging earnings situation." The Japanese automaker, which unsuccessfully tried to merge with Nissan last year, said it expected to make a net loss of ¥360 billion (~$2.5 billion) to ¥630 billion (~$4.4 billion) in the full year ending this month - which, according to The Financial Times, would be Honda's first ever annual recorded loss since becoming a public company 50 years ago.

The cancellation of the Zero Series and Acura RSX EVs is a significant setback for Honda's electrification plans, which had been ramping up in recent years. The automaker had positioned the Zero Series as its flagship electric vehicle lineup, with the Saloon and SUV models slated to offer a compelling alternative to Tesla and other leading EV brands.

The decision to scrap these models underscores the intense financial pressures Honda is facing, as it grapples with the fallout from the COVID-19 pandemic, supply chain disruptions, and heightened competition in the burgeoning electric vehicle market. The company's expected record losses come at a time when many of its rivals are doubling down on their EV investments and launching an array of new electric models.

Despite the setback, Honda remains committed to its electrification strategy, with plans to introduce 30 EV models globally by 2030. The company is also exploring partnerships and collaborations to help accelerate its transition to an electric future. However, the cancellation of the Zero Series and Acura RSX underscores the challenges the automaker faces in navigating the rapidly evolving EV landscape.

The news of the Zero Series and Acura RSX cancellation is a disappointment for Honda fans and enthusiasts who were eagerly anticipating the arrival of these new electric models. The automaker had generated significant buzz around the Zero Series, touting its cutting-edge design, advanced technologies, and the potential to disrupt the EV market. The Acura RSX, in particular, had been seen as a promising contender in the luxury EV segment.

As Honda navigates these turbulent times, the company will need to carefully prioritize its investments and focus on the most viable and strategic opportunities in the electric vehicle space. The cancellation of the Zero Series and Acura RSX is a stark reminder of the challenges facing traditional automakers as they strive to keep pace with the rapidly evolving EV industry.