Honda just pulled the plug on its entire Zero electric vehicle lineup - the SUV, Saloon, and Acura RSX - marking a stunning retreat from what was supposed to be the company's EV future. The Japanese automaker is staring down its first annual loss since going public 50 years ago, with projected losses hitting ¥630 billion (roughly $4.4 billion) by the end of this month. It's a brutal casualty of President Trump's tariffs and a rapidly shifting auto landscape that's leaving traditional carmakers scrambling.
Honda is abandoning its electric vehicle ambitions in spectacular fashion. The company announced today it's scrapping the entire Zero Series lineup - the sleek sedan and SUV that were supposed to lead Honda's charge into the EV era, along with the sporty Acura RSX that debuted to fanfare last year. The reason? An "extremely challenging earnings situation" that's about to make history for all the wrong reasons.
The numbers are brutal. Honda expects to post a net loss between ¥360 billion and ¥630 billion (that's $2.5 to $4.4 billion) for the fiscal year ending this month. According to The Financial Times, this would mark Honda's first annual loss since the company went public half a century ago in 1976. For a manufacturer that's weathered oil crises, recessions, and the 2008 financial meltdown without posting a full-year loss, this is seismic.
The Zero Series was supposed to be Honda's answer to Tesla and the wave of Chinese EV makers flooding global markets. Unveiled at CES earlier this year with much fanfare, the Zero SUV and Saloon promised cutting-edge battery technology and Honda's legendary reliability wrapped in a futuristic package. The Acura RSX was positioned as the performance halo car that would prove electric vehicles could be thrilling. None of them will ever see a showroom floor.
