UPDATE 3-Honda flags $3.6 billion loss this year as EV restructuring costs widen
Adds comment from press conference, details; paragraphs 1-9
By Daniel Leussink
TOKYO, March 12 (Reuters) - Honda 7267.T warned on Thursday it would tumble to a loss of as much as $3.6 billion this year, hit by the widening cost of restructuring its struggling EV business.
Japan's second-largest automaker becomes the latest global car company to warn of a multi-billion dollar hit due to cooling demand for EVs, especially in the United States.
Under President Donald Trump, Washington has pulled the plug on government support for EVs, forcing the likes of Ford F.N and Stellantis STLAM.MI to rethink their strategies.
Honda CEO Toshihiro Mibe told a press conference the automaker would scrap development of some planned EV models and instead put more effort into hybrids, demand for which has surged in the United States and elsewhere.
The Japanese automaker now expects to lose as much as 570 billion yen ($3.6 billion) in the year to the end of March, versus a previous forecast for a profit of 550 billion yen.
In a statement, the company said it expects to incur as much as 2.5 trillion yen in expenses and losses over multiple financial years due to the strategy shift.
Mibe and Executive Vice President Noriya Kaihara will voluntarily forego the equivalent of 30% of their compensation for three months while some other executives will forego 20%, the automaker added.
Honda plans to announce a revamped mid-to-long-term business strategy in the next fiscal year.
($1=158.9400 yen)
