EV Notes: Honda Pulls Plug on Three Planned Models
The leaders of Honda Motor Co. have joined many of their Big Auto peers in announcing a large retreat from their electric-vehicle ambitions in the United States. The Japanese manufacturer will cancel plans for three models and book more than $15 billion of write-offs, impairments and other costs.
In announcing the retrenchment last week, Chairman, President and CEO Toshihiro Mibe and his team pointed to the same forces that their counterparts at General Motors Corp., Ford Motor Co. and Stellantis NV have cited in taking similar—and similarly large—charges since last summer: The economics and near-term growth prospects of the U.S. EV market have taken a hit due to the ending of tax incentives as well as the loosening of fuel regulations. That means Honda will not move forward with its plans for the 0 SUV and 0 Saloon as well as the Acura RSX.
“Introducing these three models without an outlook for business viability may result in early production discontinuation,” Ibe said on a conference call with media. “This would cause concern and inconvenience to our customers due to damage to our brand and others. We believe introducing these models will not be in the best interest for the future of Honda.”
Executives said they intend to introduce more hybrid models in the United States through the end of this decade. But Executive Vice President Noriya Kaihara also said that Honda isn’t giving up on EVs altogether and “will maintain investment discipline to lay the groundwork from a long-term perspective.”
Polestar Adds $300M to Fundraising Spree
Executives at EV specialist Polestar Automotive Holding have recruited more big-name investors to its ranks via a $300 million funding round that takes its recent run of investment announcements to $1 billion.
Among those putting money to work with Polestar, which last year sold about 60,000 cars compared to 45,000 in 2024, is French bank Crédit Agricole CIB. The new investors have the option to sell their stakes, with certain returns included, to an affiliate of Geely Holdings, Polestar’s majority shareholder, in three years.
CEO Michael Lohscheller said the recent financings have improved Polestar’s balance sheet and share float and help give it some extra muscle to carry out its plans.
“Coming off a record year of retail sales and with four new models planned in the next three years, as announced during our recent strategy update, we are fully focused on delivering on our ambitions,” Lohscheller said in a statement.
Rivian Founder’s Robotics Venture Scores $500M in Backing
The industrial robotics company launched last year by Rivian Automotive Inc. CEO R.J. Scaringe has snagged two big Silicon Valley names to lead a $500 million funding round.
The financing comes just months after Mind Robotics was spun out of Rivian and raised $115 million led by Eclipse Capital to get going on its mission to add “human-like dexterity, adaptation, and physical reasoning” to traditional robots. With Rivian still a large shareholder and using the auto maker’s data to train its models, Palo Alto-based Mind is looking to scale quickly.
“Advanced robotics are going to be critical for global competitiveness, as well as addressing the substantial industrial labor shortages that exist today,” Scaringe said in a statement. “We’re building robots that will perform real tasks, in real plants, at real scale.”
About the Author
Geert De Lombaerde
Senior Editor
A native of Belgium, Geert De Lombaerde has been in business journalism since the mid-1990s and writes about public companies, markets and economic trends for Endeavor Business Media publications, focusing on IndustryWeek, FleetOwner, Oil & Gas Journal, T&D World and Healthcare Innovation. He also curates the twice-monthly Market Moves Strategy newsletter that showcases Endeavor stories on strategy, leadership and investment and contributes to other Market Moves newsletters.
With a degree in journalism from the University of Missouri, he began his reporting career at the Business Courier in Cincinnati in 1997, initially covering retail and the courts before shifting to banking, insurance and investing. He later was managing editor and editor of the Nashville Business Journal before being named editor of the Nashville Post in early 2008. He led a team that helped grow the Post's online traffic more than fivefold before joining Endeavor in September 2021.