Japan's Honda said Thursday it expected to book nearly $16 billion in expenses and losses related to a major reorientation of its electric vehicle (EV) strategy, blaming US policy changes and tariffs.
"Honda believed EVs would be the optimal solution from a long-term perspective. Based on this belief, Honda shifted its strategic direction toward the popularisation of EVs," the firm said.
But it added that the profitability of its auto business was declining because of "the United States government policy shift including the imposition of import tariffs".
It also pointed to the abolition of US tax incentives for EV purchases and the easing of fossil fuel regulations, as well as a decline in the competitiveness of its products in Asia.
It said that in response to the slowdown of the EV market in North America, it had decided to cancel the launch and development of certain electric models there.
Resulting expenses and losses related to the reassessment of its EV strategy, including expected losses for the current fiscal year, would be up to 2.5 trillion yen ($15.7 billion), Honda said.
These come from impairment and write-off losses on assets that were intended to be used for the production of these vehicles, the firm added.
It also said it could write down investments in China prompted by intensified competition there.
It forecast a net loss of between 420 billion and 690 billion yen for the year to end-March, compared with an earlier profit projection of 300 billion yen.
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...WIND ADVISORY REMAINS IN EFFECT UNTIL 7 PM CDT THIS EVENING...
...FROST ADVISORY IN EFFECT FROM 1 AM TO 10 AM CDT FRIDAY...
* WHAT...For the Wind Advisory, north winds 5 to 15 mph with gusts
up to 30 mph. For the Frost Advisory, temperatures as low as 36
will result in frost formation.
* WHERE...Autauga, Bibb, Blount, Calhoun, Chambers, Cherokee,
Chilton, Clay, Cleburne, Coosa, Dallas, Etowah, Fayette, Greene,
Hale, Jefferson, Lamar, Lowndes, Marengo, Marion, Perry, Pickens,
Randolph, Shelby, St. Clair, Sumter, Talladega, Tallapoosa,
Tuscaloosa, Walker, and Winston Counties.
* WHEN...For the Wind Advisory, until 7 PM CDT this evening. For the
Frost Advisory, from 1 AM to 10 AM CDT Friday.
* IMPACTS...Gusty winds will blow around unsecured objects. Trees
could be blown down and a few power outages may result. Frost
could harm sensitive outdoor vegetation. Sensitive outdoor plants
may be killed if left uncovered.
PRECAUTIONARY/PREPAREDNESS ACTIONS...
Winds this strong can make driving difficult, especially for high
profile vehicles. Use extra caution.
Secure outdoor objects.
Take steps now to protect tender plants from the cold.
&&
...WIND ADVISORY REMAINS IN EFFECT UNTIL 7 PM CDT THIS EVENING...
...FROST ADVISORY IN EFFECT FROM 1 AM TO 10 AM CDT FRIDAY...
* WHAT...For the Wind Advisory, north winds 5 to 15 mph with gusts
up to 30 mph. For the Frost Advisory, temperatures as low as 36
will result in frost formation.
* WHERE...Autauga, Bibb, Blount, Calhoun, Chambers, Cherokee,
Chilton, Clay, Cleburne, Coosa, Dallas, Etowah, Fayette, Greene,
Hale, Jefferson, Lamar, Lowndes, Marengo, Marion, Perry, Pickens,
Randolph, Shelby, St. Clair, Sumter, Talladega, Tallapoosa,
Tuscaloosa, Walker, and Winston Counties.
* WHEN...For the Wind Advisory, until 7 PM CDT this evening. For the
Frost Advisory, from 1 AM to 10 AM CDT Friday.
* IMPACTS...Gusty winds will blow around unsecured objects. Trees
could be blown down and a few power outages may result. Frost
could harm sensitive outdoor vegetation. Sensitive outdoor plants
may be killed if left uncovered.
PRECAUTIONARY/PREPAREDNESS ACTIONS...
Winds this strong can make driving difficult, especially for high
profile vehicles. Use extra caution.
Secure outdoor objects.
Take steps now to protect tender plants from the cold.
&&
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