Honda CEO Faces Pressure from Retired Executives Over Failed EV Strategy

[Corporate Governance] Honda CEO Toshihiro Mibe is under joint pressure from multiple retired executives to resign, following strategic missteps in electric vehicles (EVs) that have pushed the company toward its first annual loss in 70 years.

Key Development: Elder Executives' Attempt Fails, but Strategy Reversed

Former executives including Nobuhiko Kawamoto have held multiple meetings since late 2025, criticizing Mibe for neglecting the Chinese market and overcommitting to EVs. In April 2026, they directly demanded his resignation. Although the attempt was unsuccessful and Mibe remains in office, he has accepted a 30% salary reduction for three consecutive months.

Key Figures: Drastic Scaling Back of EV Strategy

Honda has abandoned its goal of full electrification by 2040, canceled three EV models under development, and recorded an asset impairment charge of approximately USD 9 billion, with total losses potentially reaching USD 12 billion.

Strategic Context: Traditional Automakers Retreat En Masse

This move aligns with similar actions by Ford, General Motors, and Nissan, which together have written off more than USD 25 billion in EV investments, reflecting a collective reassessment among legacy automakers of aggressive electrification strategies.