Oh no, Honda has cancelled its wedgy 0 Series electric cars

Well, wow. Honda has cancelled the development and release of the wedgy 0 Series saloon and SUV, along with the Acura RSX EV, because… well, just wow. So many reasons. And Honda hasn’t pulled any punches nor hidden behind any corporate speak.

Indeed, the Japanese carmaker is astonishingly frank about its current predicament. It said the profitability of its cars division is being hit after “unfavourable” US tariffs on petrol and hybrid cars, and a “decline in the competitiveness of Honda products in Asia”.

About the US. Honda betted on previous administrations’ “stringent environmental regulations” that made making and selling EVs viable. But now, with the “easing of fossil fuel regulations”, the EV market is declining.

About China. “Honda was unable to deliver products that offer value for money better than that of newer EV manufacturers,” it said, citing China’s ability to rapidly develop and launch not just new cars, but software-defined tech.

And so the “Honda automobile business has fallen into an extremely challenging earnings situation due to various factors, including its inability to respond flexibly to these changes”.

So, first on the chopping block are those aforementioned 0 Series cars, which surely must have been right on the cusp of being ready to deliver, along with the RSX.

“Honda determined that starting production and sales of these three models in [the] current business environment where the demand for EVs is declining significantly would likely result in further losses over the long term,” it said. It expects to record losses this financial year. And possibly the next, too. Honda reckons up to 2.5 trillion yen.

So, what’s the plan now? To divert resources into its hybrid cars, focus on India (where it expects to grow), and do some other very complicated financial things. Heck, even the senior executives will forgo their performance bonuses for this year.

Like we said… wow.