Honda CEO Apologizes for First Loss in Nearly 70 Years and Secures Re-election

At Honda's annual general meeting, CEO Toshihiro Mibe apologized to shareholders for the company’s first annual net loss in nearly 70 years and secured sufficient support to retain his position as a director. The loss stemmed primarily from over $9 billion in restructuring costs related to its pure-electric vehicle (EV) business, compounded by intensifying competition from Chinese automakers—exposing significant strategic missteps in Honda’s electrification efforts. Mibe explained that EV sales in the U.S. market fell far short of expectations, and continuing with the original sales plan would likely result in five to seven consecutive years of losses for the automotive division, prompting the company to write down related assets. Shareholders also approved the appointments of the other ten director nominees—nine incumbents and one new appointee. During the meeting, a shareholder proposed a motion to remove Mibe, but he declined to put it to a vote, citing that the issue was not included on the official agenda. Additionally, Mibe revealed that Honda has been engaged in substantive negotiations with Nissan and Mitsubishi since mid-2024 regarding collaboration on next-generation automotive technologies, with tangible progress already achieved. Recently, several former executives—including ex-CEO Nobuhiko Kawamoto—have publicly or privately criticized Mibe’s strategic decisions, particularly for neglecting the Chinese market and over-relying on the high-margin motorcycle business.