Sony Honda Mobility announced the discontinuation of its Afeela electric vehicle program, which included the Afeela 1 sedan and a second SUV model, following Honda’s March 12 2026 reassessment of its electrification strategy.
Honda’s reassessment led to the cancellation of three U.S. EV models—Honda 0 SUV, Honda 0 Saloon, and Acura RSX—and a write‑down of up to ¥2.5 trillion (≈$15.7 billion). The loss marks Honda’s first annual loss in decades and signals a pivot to hybrid technology.
Management noted that Honda’s CEO Toshihiro Mibe will forfeit 30 % of his monthly pay for three months, and that the joint venture will no longer be able to use certain technologies and assets originally planned for the Afeela project.
Honda cited slowing demand, policy changes, and intense competition from newer EV makers as reasons for the shift, stating that it could no longer deliver value‑for‑money products that compete with newer entrants.
The decision also impacts Honda’s manufacturing footprint: the Ohio plant, retooled for the canceled EV models, will continue producing existing models such as the Accord and Integra, while the Jeffersonville battery plant faces an uncertain future.
The move underscores a broader trend among legacy automakers reevaluating electrification strategies amid market headwinds, highlighting the challenges of large‑scale EV investments and the strategic importance of hybrid platforms for sustaining profitability.
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