Sony Honda Mobility, the joint venture established by the two Japanese conglomerates, has decided to give up on the two “Afeela”-branded EVs that it has spent the last few years developing.The decision comes after Honda announced earlier this month that it was doing a major about-face and canceling three electric vehicles planned for the U.S. market — a decision that could cost the Japanese automaker nearly $16 billion. Honda blamed President Trump’s tariffs and rising competition from China as reasons for ...

Core Viewpoint - Honda's $15.7 billion writedown in its electric vehicle business signifies a major strategic reversal and highlights upcoming challenges in China, where the company faces a growing technological gap [1] Group 1: Financial Impact - Honda announced a restructuring of its EV business, primarily in the U.S., leading to a writedown of approximately 2.5 trillion yen ($15.7 billion) [1] - The company is expected to report its first annual loss in nearly 70 years as a listed entity [1] - Cash outflows could reach up to 1.7 trillion yen, primarily due to supplier compensation costs [1] Group 2: Product Strategy Changes - Honda will cancel three planned battery-powered models in the U.S. due to a significant drop in demand for electric vehicles following the end of related subsidies [1] - The cancelled models include the Saloon, Honda 0 SUV, and Acura RSX, which were expected to be launched in North America [1] Group 3: Market Performance and Competitiveness - In China, Honda's battery-powered vehicle sales were only 17,000 units last year, representing just 2.5% of its total sales in the country [1] - The company acknowledged its struggle to compete with newer Chinese EV manufacturers, which have shorter development cycles and advanced software capabilities [1] - Concerns have been raised regarding Honda's long-term technological competitiveness, particularly in the context of its joint venture with Sony Group, Sony Honda Mobility [1]