Honda is suffering the worst crisis in its history, after the automotive division registered losses exceeding 4.2 billion euros during the Japanese fiscal year, which ends on March 31st each year. This is the first time in the Japanese brand's 70-year history that a fiscal year has closed with financial losses, causing a real earthquake that has shaken the foundations of the Nipponese brand. In fact, one of the first measures taken by the company's management has been to rethink the brand's industrial roadmap, oriented towards a total electrification of its range.The poor results of a historically profitable and sound brand like Honda's automotive division (which includes the high-performance subsidiary Acura) are mainly due to the involution of the North American market because of the trade tariffs imposed by the Trump administration and the transition process towards electric cars, which is not progressing at the pace foreseen by the brand.Let's take it step by step, though. To grasp the magnitude of the tragedy, one must first understand that Honda is a brand with a large commercial presence in the United States, a country where it also has several production plants such as those in the state of Ohio, where the Honda CR-V is manufactured, or the factories in Lincoln and Greenwood, in the states of Indiana and Alabama respectively, where Honda Civics and various Acura models for the North American market are produced. However, since 2010 Honda has also opened new plants in Mexico and Canada, taking advantage of the free trade agreements between the countries of North America, where the HR-V, the brand's best-selling car worldwide, is manufactured. The new trade tariffs approved by the Trump administration have made models manufactured in Canada or Mexico no longer competitive in the North American market, with a consequent drop in sales. As Honda manufactures some of its best-selling models in Mexico or Canada, its product has become exponentially more expensive due to trade tariffs, causing the price of cars to become uncompetitive in the United States market. To try to compensate for the increase in the final price of its product, Honda has had to cut the commercial margin for each unit sold of the Honda and Acura divisions, and if to this factor we add that sales have not grown in volume, the reason for the brand's crisis is perfectly understood. And it is that during the year 2025 Honda sold a total of 3,312,000 cars, 10% less than the previous year. Fewer cars sold, and with a smaller margin: the key to the brand's financial storms.A rather uninspiring electricity demand

The second factor that has contributed to Honda's poor economic result has been the low demand for electric vehicles worldwide and the sizing and investments that the brand had made since the launch of the Honda e, a magnificent electric car that we were able to test six years ago and that was supposed to be the spearhead of the Japanese brand's electric strategy. In reality, however, the Honda e and the rest of the brand's electric models have turned out to be a great commercial failure for the Japanese brand.

]]>

Honda is one of Japan's largest companies, boasting a healthy, well-run company with a lean and adequate product range across all its business divisions, especially in the manufacture of cars and motorcycles. Honda was also one of the first brands to invest in electric cars, with the aim ofHonda and, a good product that failed to gain popularity with the general public and which the brand withdrew from the market a few months ago after commercial results far below initial expectations.

]]>

Japanese automaker Nissan plans to lay off around 10,000 workers, in addition to those already announced as part of its restructuring process, which will result in a reduction of approximately 20,000 employees or around 15% of its global workforce, the company announced this week. The reason is that the Japanese automotive industry is facing a situation that could redefine its future: overwhelming competition from Chinese electric vehicle manufacturers. While China accelerates production with more affordable models and leading technology, Japanese brands are torn between their historical commitment to hybrids and the need to adapt to a future increasingly dominated by total electrification. In this global struggle, Japan's success or stagnation could depend on how quickly it abandons its conservative strategy and assumes the risks of a radical transformation.

]]>

The merger process between Honda and Nissan is the big series of the year in the automotive world and the star topic in the economic and business news of Japan. After both brands signed and announced the start of negotiations for the merger between Honda and Nissan with a schedule and process indicators agreed between both parties and with the approval of the Japanese government - which considers this operation strategic for its own economy - the process has ended up cooling down due to Nissan's current situation and the current will of Nissan.

]]>