Honda flags first annual loss, hit by US$15.7 billion EV charge
BNN Bloomberg
Honda will fall to its first annual loss in almost 70 years as a listed company, hit by up to US$15.7 billion in restructuring costs at its EV business, it said on Thursday, as weaker-than-expected demand for the technology hammers automakers.
Under U.S. President Donald Trump, Washington has ended government support for EVs, forcing the likes of Ford and Stellantis to rethink their strategies and book hefty write-downs of their own.
Japan’s second-largest automaker said it expects a hit of up to 2.5 trillion yen ($15.7 billion) as it cancels three EV models planned for production in the U.S.
While analysts had expected further EV-related losses at Honda, the size of Thursday’s write-down was a surprise, said Julie Boote, autos analyst at Pelham Smithers Associates.
“The main surprise was that the U.S. production program was canceled, rather than just scaled down. Honda had a very ambitious EV expansion plan, which was badly affected by the changing market environment,” Boote said.
CEO Toshihiro Mibe told a press conference that EV demand had fallen sharply, making it “very difficult” to sustain profitability.
The impact of the Iran war on fuel prices in Canada may encourage more drivers to go electric, some experts say, but others warn the conflict will drive up prices of "pretty much everything."
The U.S. is temporarily easing some sanctions on Russian oil shipments, reflecting global concerns over sharply higher crude prices due to supply shortages stemming from the Iran war.
The Trump administration this week stepped up its ambitious effort to replace about US$1.6 trillion in lost tariff revenue that was eliminated by the U.S. Supreme Court’s decision to strike down a range of the president’s import taxes.
The Bank of Canada will be balancing a last-minute flood of economic data with uncertainty around trade and war in the Middle East as it prepares to make its second interest rate decision of 2026 this week.
The Trump administration has expanded its trade investigations to 60 countries, including Canada, in an effort to shore up the president’s tariff policies.
Canada has committed to supplying 23.6 million barrels of oil as part of a larger International Energy Agency plan to help stabilize energy markets as the war in the Middle East continues.
Canada’s energy-heavy index may cushion stocks from oil shocks, but rising crude prices could boost inflation and pressure consumers.
Venture Global will proceed with phase 2 of its CP2 liquefied natural gas project in Louisiana, the company said on Friday.
The U.S. is temporarily easing some sanctions on Russian oil shipments, reflecting global concerns over sharply higher crude prices due to supply shortages stemming from the Iran war.
Telus Corp.’s global IT and customer services arm says it’s investigating a breach of its systems.
When Jensen Huang strides onto the stage of a packed hockey arena to kick off Nvidia’s annual developer conference on Monday, he is likely to reveal products and partnerships geared toward keeping the AI chipmaker atop a growing array of competitors.
The current Canada Revenue Agency (CRA) crackdown on Canada’s growing army of gig workers has gone beyond Uber drivers, contractors, consultants, handy-people and freelancers.