S/ Mibe Toshihiro, Honda Motor President / Due to changes in the business environment, EV demand has decreased significantly mainly in North America. Although we have taken every possible measure, profitability remains extremely difficult.

On March 12, Honda Motor announced that it will record extraordinary losses as a result of reviewing its strategy, including canceling the development and planned launch of three electric vehicle models for the North American market.

Accordingly, the company said its net loss for the fiscal year ending March 31 is expected to reach up to 690 billion yen.

The Japanese automaker estimated that expenses and losses related to the reassessment of its EV strategy will total a maximum of 2.5 trillion yen, most of which will be recorded in the consolidated financial reports for the current and next fiscal years.

In addition, the president, vice president and other executives will return a portion of their compensation to the company.