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- Honda is trimming $21 billion from its EV investments, citing slower sales
Honda is trimming $21 billion from its EV investments, citing slower sales
CDG News Alert (1 min. read)
Anna del Villar
May 21, 2025
Honda CEO Toshihiro Mibe
Driving the news: Honda is slamming the brakes on its EV ambitions, abandoning its goal for electric vehicles to make up 30% of global sales by 2030 and slashing its electrification investment by a massive $21 billion.
For context: CEO Toshihiro Mibe called this a "switch in the planned course" while insisting the long-term shift to electrification remains intact (just on a longer timeline). The company cited "uncertainty in the business environment" and "slowdown in the expansion of the EV market" due to changing environmental regulations as key factors behind the decision.
Why it matters: While Honda didn't directly mention President Trump, his policies on tariffs and skepticism toward electric vehicles have likely influenced this strategic pivot. Instead of rushing toward full electrification, Honda now plans to prioritize hybrids by adapting facilities like their Marysville, Ohio plant to produce multiple electrified powertrain models.
What we’re watching: While Honda is still pursuing long-term zero-emission goals, this recalibration suggests the automaker sees a much longer and more complex transition period ahead for EVs.
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