Honda Suffers First Annual Loss in 70 Years: Impact on F1 Explained

Honda has reported its worst financial loss since it became a public company in 1957. The company revealed a loss of 423 billion yen (about $2.68 billion) for the financial year ending in March, confirming earlier predictions made in March. These figures are worse than during the pandemic years when Honda fully committed to electric vehicles (EVs) and withdrew from Formula 1 at the end of 2021.

Despite these losses, Honda stated that its financial situation will not impact Honda Racing Corporation (HRC) or its Formula 1 project. CEO Toshihiro Mibe explained that the loss is mainly due to significant investment costs in EVs. However, these investments have not yet produced the expected results, especially in the United States, where certain tax credits for EV purchases were removed.

As a response to its financial difficulties, Honda has paused an $11 billion investment plan to produce EVs and batteries in Canada. The company has also abandoned its earlier target to have 20% of new car sales be EVs by 2030 and the goal of selling only electric cars by 2040.

In the context of Formula 1, there are ongoing discussions about returning to internal combustion engines, such as V8s, powered by sustainable fuels. Some F1 teams, including Mercedes, have expressed interest in new engine regulations that would include internal combustion technology.

How much do you know?

What was Honda's reported financial loss for the year ending in March?

423 billion yen

300 billion yen

200 billion yen

500 billion yen

When did Honda become a public company?

1950

1957

1965

1970

What significant strategy did Honda implement before withdrawing from Formula 1?

Increased production of gas vehicles

Committed to electric vehicles

Invested in hybrid technology

Focused on racing improvement

How much was the paused investment plan for EVs and batteries in Canada?

$5 billion

$8 billion

$11 billion

$15 billion

What target did Honda abandon for EV sales by 2030?

30%

50%

20%

10%

Which company is mentioned alongside interest in internal combustion engine regulations?

Ferrari

Red Bull

Mercedes

McLaren

Honda's financial loss was greater than during the pandemic years.

True False

Honda Racing Corporation will be impacted by the company's financial losses.

True False

CEO Toshihiro Mibe believes the investments in EVs will soon produce expected results.

True False

Honda has set a goal to only sell electric cars by 2040.

True False

Honda is still planning to proceed with their investment in EVs in Canada despite their financial loss.

True False

There are discussions regarding returning to internal combustion engines in Formula 1.

True False

Honda reported a financial loss of 423 billion yen for the financial year ending in March, confirming earlier predictions made in .

Honda's financial loss became the worst since it became a public company in .

The company has abandoned its earlier target to have of new car sales be EVs by 2030.

CEO Toshihiro Mibe explained that the loss is mainly due to significant investment costs in .

Honda has paused an billion investment plan to produce EVs and batteries in Canada.

Some F1 teams are interested in new engine regulations that would include internal combustion technology powered by .

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