Honda retreats to hybrids after failed EV bet triggers record $9 billion loss [Images]

Honda is waving the white flag. The Japanese automaker previewed two new hybrids set to launch by 2028 after taking an over $9 billion hit over its failed EV bet, leading to its biggest loss in company history.

Honda turns to hybrids after EV pullback proves costly

Honda admitted it was “unable to deliver products that offer value for money better than that of new EV manufacturers, resulting in a decline in competitiveness,” after suddenly announcing plans to cancel three new EVs in the US in March, warning restructuring costs could reach 2.5 trillion yen ($15.7 billion).

After posting its first annual loss since it became a publicly traded company in 1957 on Thursday, Honda’s CEO Toshihiro Mibe revealed the company’s comeback plans.

Honda is no longer planning to phase out gas-powered vehicles by 2040. Instead, Honda now aims “to achieve carbon neutrality by 2050,” including a mix of EVs, hybrids, carbon-neutral fuels, and carbon-offset tech.