Honda down $16B on EVs

2,909 Views | 36 Replies | Last: 22 days ago by hph6203
Over_ed
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Honda is cancelling all 3 of its new EVs that were going to be American built.

Honda decided that the three EVs were not competitive if the price of gasoline remained low and EV incentives were not substantial. Also cited tariffs.

Referring the important Chinese EV market, Honda said it was simply not competitive with Chinese manufacturers. Hond said the Chinese offer better value and were more aggressively innovating, particularly in software and electronic features.

So bad news:
1) for workers at Honda's Ohio plant, scheduled to produce the cars.
2) Bad news for Honda, who has seemed to have lost their way.
3) Bad news for some Honda executives who took a 30% penalty to wages.
4) Really bad news as the Chinese are still kicking our collective tails in most manufacturing areas.

Good news if you believe, like I do, that the government has no business ramming EVs down our throats and then using our tax dollars to prop up these companies.

https://www.caranddriver.com/news/a70722299/honda-0-series-suv-saloon-acura-rsx-canceled/

doubledog
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Honda has dodged a bullet.
If they had built their plant in Seattle, the mayor would have forced them to stay open.
Pichael Thompson
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Thank God the dumbass ev grift that pollutes the earth is coming to an end


Idiots have finally learned not to buy that garbage scam
Ag87H2O
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Sounds like Honda execs saw the error of their ways and made a wise business decision. Cut their losses and getting back to building cars people actually want.
InvisibleSwordsman
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Passenger vehicles are a good start. Now, I need them to move back into the gas powered mower game!
Rocky Rider
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Pichael Thompson said:

Thank God the dumbass ev grift that pollutes the earth is coming to an end


For now. "Those people" are never going away. Just like radical Muslims are never going away
Kaiser von Wilhelm
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Rocky Rider said:

Pichael Thompson said:

Thank God the dumbass ev grift that pollutes the earth is coming to an end


For now. "Those people" are never going away. Just like radical Muslims are never going away


Yes, but they've always been around. It is only recently that they have been given some sort of influence, even if it is artificial and politically motivated/encouraged. Hopefully they can go back to being made fun of in high school, then realize that no-one actually cares what they think once it is no longer forced upon the rest of us, and kindly stfu.
samurai_science
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The Hybrid V-6 Powertrain they are launching should help them turn it around, especially since its not a crappy turbo.
Nagler
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lol
Ordinary Man
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Good, now bring back your gas powered lawn mowers.
hph6203
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Pichael Thompson said:

Thank God the dumbass ev grift that pollutes the earth is coming to an end


Idiots have finally learned not to buy that garbage scam
Opposite of reality. They're companies that don't know how to make a good BEV so they can't steal enough market share from the incumbents that actually know how to build a good BEV. Market grows, they don't take the growth, because their product is worse. That leaves them with a lot of investment in building a BEV and no market for the ones they build.

BEV market is growing, not shrinking, globally. The future of automobiles is an autonomous BEV. These companies you see making massive write-downs are going bankrupt precisely because they don't have the technical know how to build an autonomous BEV. They have a core competency that doesn't translate. To compete in BEV you have to totally change the business model and engineering mentality.

It's the Innovators Dilemma, satisfy your current customers who understand and appreciate your current offerings, or defend against an incumbent product with a smaller market share that does not yet fully satisfy your core customer, but is on a pathway to exceed their use. Pure BEV plays don't need to satisfy the entirety of the ICE vehicle buyers, they can ruthlessly satisfy the customer for whom a BEV is a perfect match and allow the technology to progress until it makes owning a gas vehicle stupid.






AlaskanAg99
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Honda still produces a NA V6. Unlike all the turbo 4 banger crap toyota and Subaru have.

Happy theyre dumping a useless line and keep doing what they do best.
aTm '99
nortex97
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Exactly, and improving on it continuously, though the cylinder deactivation on the newest Passports etc. is a 'glitch' I hope they delete, or someone figures out a way to bypass it.
ts5641
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Outside of Tesla's, most people don't want EV's. They suck!
Phatbob
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Great, but where's my stick shift sport model Accord?
jwhaby
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The government should stay out of private businesses. On top of subsidies for EVs, it mandated ridiculously lofty CAFE standards. This forced some companies to pursue EVs more aggressively than they may have wanted to.

Sadly, Honda should probably continue on their EV quest because when the next Democrat administration comes into power, they will be mandated again.
No Spin Ag
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Over_ed said:

Honda is cancelling all 3 of its new EVs that were going to be American built.

Honda decided that the three EVs were not competitive if the price of gasoline remained low and EV incentives were not substantial. Also cited tariffs.

Referring the important Chinese EV market, Honda said it was simply not competitive with Chinese manufacturers. Hond said the Chinese offer better value and were more aggressively innovating, particularly in software and electronic features.

So bad news:
1) for workers at Honda's Ohio plant, scheduled to produce the cars.
2) Bad news for Honda, who has seemed to have lost their way.
3) Bad news for some Honda executives who took a 30% penalty to wages.
4) Really bad news as the Chinese are still kicking our collective tails in most manufacturing areas.

Good news if you believe, like I do, that the government has no business ramming EVs down our throats and then using our tax dollars to prop up these companies.

https://www.caranddriver.com/news/a70722299/honda-0-series-suv-saloon-acura-rsx-canceled/




Could it be that Hondas base of buyers is in a different place financially than they thought their buyers would be?

There was a story the other day about how BMW, Mercedes, and Volvo are expecting higher than expected sales of their EVs set to come out in the next year.

Does anyone know if Cadillac and Ford and mid tier auto makers are expecting things closer to the Germans or more along the lines on Honda?
There are in fact two things, science and opinion; the former begets knowledge, the later ignorance. Hippocrates
JClark97
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Big fan of Tesla here, but I don't want government subsidies. Let the free market decide the winners. That said, the innovation at Tesla including full self driving is fantastic. If Tesla would come out with a normal looking truck, they would be better off for it...
Who?mikejones!
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InvisibleSwordsman said:

Passenger vehicles are a good start. Now, I need them to move back into the gas powered mower game!


That ain't no joke
Who?mikejones!
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Speaking of cyber cabs and buses- why doesnt a school like texas am partner with them to introduce cyber buses on campus?

Its a perfect place to do it. Defined routes and loops, times, predictable patterns and ridership.

Seems like a no brainer
No Spin Ag
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JClark97 said:

Big fan of Tesla here, but I don't want government subsidies. Let the free market decide the winners. That said, the innovation at Tesla including full self driving is fantastic. If Tesla would come out with a normal looking truck, they would be better off for it...


You may want to look into the Hummer EV. That thing is a beast in looks and capabilities.

A buddy of mine in the patch says the dealer can't keep them on the lot.
There are in fact two things, science and opinion; the former begets knowledge, the later ignorance. Hippocrates
Over_ed
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ts5641 said:

Outside of Tesla's, most people don't want EV's. They suck!

I suspect if Tesla is still offering reasonable models, I will get one. Like everyone, I believe I am a much better than average driver. :-)

But as I start getting past 70, I am content to give up control. Reflexes, vision, attention span, Anyone who thinks they are driving as well above age 70 than at 30 are delusional.

Anyone who thinks they are driving as well after age 70 than they did at age 30 IS delusional.
Urban Ag
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Been a fan of Honda all my life. Grew up on the XR model dirt bikes and raced CR's for years.

They need to stick with motorcycles, ATV's, small engines, and little cars you can put 300k miles on. They're really good at it. Probably the best on the planet.
deddog
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Over_ed said:

ts5641 said:

Outside of Tesla's, most people don't want EV's. They suck!

I suspect if Tesla is still offering reasonable models, I will get one. Like everyone, I believe I am a much better than average driver. :-)

But as I start getting past 70, I am content to give up control. Reflexes, vision, attention span, Anyone who thinks they are driving as well above age 70 than at 30 are delusional.

Anyone who thinks they are driving as well after age 70 than they did at age 30 IS delusional.

My wife (50s) has bad eyesight, does not drive at night. She dropped me off at IAH, and drove back to Austin, FSD. Didn't have to intervene a single time. It navigated the car out of the perpetual construction at IAh and parked her in our driveway 160 miles later. Absolutely insane tech
one safe place
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I might consider an EV if they can make it go 500 miles on three AA batteries and be able to pull a trailer with it. Oh, and not make them so ugly. Until then, nah.
hph6203
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deddog
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Ag87H2O said:

Sounds like Honda execs saw the error of their ways and made a wise business decision. Cut their losses and getting back to building cars people actually want.

When you read the actual press release, its not about building cars that people actually want.
What they are saying is that they are so far behind Tesla and China in EVs, they are unable to catchup and build the cars that people want, and are giving up because it's a loss making endeavor for Honda. Instead they are pivoting to Hybrids where its easier to compete.
MouthBQ98
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That is smart. Hybrids are in much greater demand in the USA.
No Spin Ag
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MouthBQ98 said:

That is smart. Hybrids are in much greater demand in the USA.


And more and more all the time. It's the best of both worlds.
There are in fact two things, science and opinion; the former begets knowledge, the later ignorance. Hippocrates
hph6203
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It's really not. It's hybrid drives (SSHD) all over again. Those lasted very few years. Lots of unnecessary investment into a technology that will be on the way out in a decade, because EVs will do everything a gas vehicle can do and also things they can't/aren't optimized for.
AgGrad99
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hph6203 said:

It's really not. It's hybrid drives (SSHD) all over again. Those lasted very few years. Lots of unnecessary investment into a technology that will be on the way out in a decade, because EVs will do everything a gas vehicle can do and also things they can't/aren't optimized for.

We're still a long way away from that point.

Even if we eventually get to a point the EV can have an actual range of 500 miles, recharge in 3 minutes, or handle all the other necessities, etc...you still have to completely change the refueling infrastructure around the world, and figure out how to generate enough power globally to supply all the EVs. That would require a not more nuclear production, and that takes time (a long time).

I'm not against EVs, but even with the recent advances and BYDs optimistic promises, we're still a long way away from it becoming the defacto/practical vehicle option.
MouthBQ98
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I'm about to drive 17 hours to go skiing in a week. Any near term EV would add 2-3 hours to my drive. Each way. Rare problem but things like it absolutely affect my vehicle choices.
IIIHorn
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Were shocks included?
hph6203
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Not how disruption occurs. You have a false belief that for a product to be replaced the replacing product must exceed it in all aspects. That is not the case. An SSD does not exceed a hard drive in all aspects, and yet it is the dominant storage device in the market now.

The replacing product only needs to exceed the consumers minimum use for the product where the new product does not exceed the capability of the replaced product. Existing products often exceed minimum expectations when the cost of improving them is trivial, larger fuel tanks, faster flow gas pumps create longer range and faster refueling at minimally incremental costs, but their capability exceeds consumer demands. Does a consumer need 500 miles of range and 3 minute refueling even for a gas car? No. It's a feature that exceeds demands, a benefit but a circumventable one for products that do not achieve those metrics

EVs charge at home, speed of refueling and range is only relevant when the distance of the trip exceeds the range of the vehicle, rare. So the question is at what rate of charging and range do the benefits of an EV exceed the over performance above expectation of a gas vehicle? It's not at 3 minutes and 500 miles of range and your assumption that it does is a lack of familiarity with the experience of owning an EV.

The norm distance driven on a daily basis by a driver is less than the amount of range that can be added by a 120v 15 amp circuit over night. Combine cheap residential charging at home with faster charging (10 minutes) in public and you end up with consumers charging in public once every month rather than once every other week like they do with a gas vehicle. The infrastructure being installed by EV charging companies today is capable of of meeting that 10 minute charging time, so they won't have to go back and rebuild when existing battery technology proliferates into actual vehicles.


The Innovators Dilemma is a book that explains those concepts, and also covers why hybridization often fails, because the impetus of hybridization is derived from an encroachment of a novel product that is doing things the existing product does not do well, and eventually the novel product replicates the minimum viable function of the existing product for all consumers and the hybrid product and existing product both fail.

Why hybrid cars won't last long, and why gas vehicles manufacturers will eventually in large scale go bankrupt or pivot to EVs. You don't have to listen to me, Jim Farley CEO of Ford agrees over the longer term. It's not happening this year.

If you want to see Tesla's vehicle manufacturing innovations in electric vehicle manufacturing just wait 2 years and Ford will tell you how they're innovating in EV manufacturing.

AgGrad99
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Quote:

Not how disruption occurs. You have a false belief that for a product to be replaced the replacing product must exceed it in all aspects. That is not the case.

Sometimes it is, sometimes it isn't. Market demand dictates that.

But that wasn't my point. I qualified my post, for the event the EV actually does meet/exceed current options. I took that out of the equation.

Again, the vehicle is just one part of the equation, regarding the timeline.
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