Honda was late in offering its battery electric vehicles (BEV) to the global market and has now announced that it will review its EV strategy. The first drastic step taken was the cancellation of the Honda 0 SUV, Honda 0 Saloon and Acura RSX models. The Honda 0 SUV and Honda 0 Saloon were just shown last year and were supposed to be manufactured in the United States.
A new strategy was needed after the United States ended the EV purchase subsidy program under the Donald Trump administration. Trump also relaxed EPA fuel efficiency regulations that had to be complied with previously, which was the catalyst for Honda offering its EVs to the US market first. Fierce competition from Chinese manufacturers also caused Honda's strategy to change.
Honda follows in the footsteps of Ford, Volkswagen and Lamborghini who have either reduced the scope or ended their EV development due to lack of response from consumers.
The Ford F150 Lightning program was not well received, causing huge losses. Ford will offer a PHEV version to breathe new life into this electric truck with the battery production plant being converted to produce battery packs for data center needs.
Lamborghini has abruptly halted development of its Lamborghini Lanzador eSUV, with Lamborghini CEO Stephan Winkelmann saying demand for it was “almost zero.” Meanwhile, Volkswagen is closing a car factory that will be converted into a hub for artificial intelligence (AI), robotics and chip design research. This is all because sales of the Volkswagen ID EV series have not met targets.
