Honda has canceled three electric vehicles it was months away from producing at its Ohio EV Hub. The Honda 0 SUV, Honda 0 sedan, and Acura RSX were all scrapped despite being shown in near-production form at CES 2025. These models were built on Honda's proprietary Zero platform, marking a major setback for the company's in-house EV ambitions.

CEO Toshihiro Mibe cited multiple factors for the decision, including the elimination of federal EV tax credits, eased fossil fuel regulations, and US tariffs. The company admitted it couldn't compete with newer Chinese manufacturers offering software-driven vehicles at better value. Mibe said the demand shift had made EV profitability 'very difficult,' according to Reuters.

Honda plans to redirect resources toward next-generation hybrids and will only bring EVs to market when demand justifies it. The restructuring could cost up to 2.5 trillion yen ($15.7 billion), with Honda set to lose money for the first time since going public in 1957. Mibe and other executives will take significant pay cuts. The company will share a detailed long-term strategy at a May press conference.