Honda has canceled all three electric vehicles in its 0 Series lineup — including an SUV and a sedan — along with the Acura RSX electric crossover, just weeks before production was set to begin. All four models were built on Honda’s proprietary “Zero” platform and represented the cornerstone of the company’s EV strategy for the North American market.
The restructuring costs associated with the decision are estimated at approximately $15.7 billion, a figure that will push Honda to its first annual operating loss in nearly 70 years. The company had already poured more than $4.4 billion into its Ohio EV Hub, a dedicated manufacturing facility designed to anchor a North American supply chain for these very models.
Why Honda is walking away
In a statement, Honda described the current situation as “extremely critical,” pointing to two main pressures: the negative impact of U.S. tariffs on its profitable gasoline and hybrid vehicle business, and a loss of competitiveness in Asian markets — a direct consequence of having redirected too many resources toward EV development at the expense of its existing lineup.
The broader slowdown in electric vehicle demand has also played a significant role. Honda concluded that launching the 0 Series models in the current market environment would generate further long-term losses rather than return value. Growing competition from Chinese automakers, who are entering international markets with increasingly capable and affordable electric vehicles, added further weight to the decision.
What the 0 Series Was Supposed to Be
The 0 Series was unveiled with considerable fanfare. The SUV and sedan were developed on a ground-up EV platform built around a “Thin, Light and Wise” design philosophy, and both were set to feature Honda’s ASIMO OS — an advanced in-car operating system with high-level driver assistance capabilities. The Acura RSX, while sharing its name with a beloved sports coupé from the 2000s, was an entirely new electric crossover concept.
Production was slated for the Ohio EV Hub, which Honda had positioned as the foundation of its North American electric future — and into which it had invested over $4.4 billion.
Hybrids Take Center Stage
Honda isn’t abandoning electrification altogether — it’s stepping back to firm up its footing. In the near term, the company is doubling down on hybrids, a segment where it continues to generate strong profits. The upcoming Honda Pilot and Passport will both receive a newly developed V6 hybrid powertrain, signaling where Honda sees its most viable path forward.
Honda is far from alone in this retreat. Ford, GM, Hyundai, Kia, Volkswagen, and Stellantis have all scaled back or paused EV launch plans in the U.S. market in recent months. Meanwhile, Toyota — Honda’s chief Japanese rival — is moving in the opposite direction, with three new electric models still on track for release in 2026.
The contrast underscores a growing divergence in strategy among legacy automakers: some are pressing ahead with electrification, while others are choosing to wait for the market — and the economics — to catch up.
