Ford and Honda scrap struggling models after billions in losses [View all]

Ford and Honda are ripping up parts of their electric playbooks after racking up losses that would make even tech unicorns blush. The two brands poured billions into ambitious EVs and partnerships, only to discover that customers, charging networks, and costs were not lining up fast enough to justify the bets. Now they are scrapping halo models, shelving joint platforms, and trying to prove to investors that the next wave of EVs will be leaner and actually profitable.

This reset is not happening in a vacuum. Across the industry, carmakers are taking huge write-downs on electric programs that once looked untouchable, with total charges around $50 billion tied to EV development and manufacturing. Ford and Honda sit right in the middle of that storm, and their decisions to walk away from struggling projects offer a blunt reality check on how tough the transition from gasoline to batteries has become.

Ford went harder than most into electric pickups and big-ticket crossovers, and the bill has arrived. The company’s dedicated EV arm, often described as Ford Model e, has been a financial sinkhole, with reports that Ford Motor’s electric vehicle division lost $4.8 billion in fiscal year 2025 alone. That red ink helped drag the wider business into what has been described as Historic Losses that were Worse Than the Great Recession, with The Blue Oval absorbing a hit that dwarfed the pain of earlier downturns and highlighting how aggressively it had chased electric growth.

Those numbers forced a ruthless look at the product lineup. Ford has already warned that its EV division is expected to keep losing money, with internal guidance pointing to losses of up to $4.5 billion through 2026 even after an improvement of $1.6 billion in Gen 1 products. The company has also acknowledged a separate $8.2 billion overall loss, where the Ford Model E EV Unit Lost $4.8 Billion In 2025, underlining how much of the financial damage is tied directly to the electric push rather than the traditional truck and SUV franchises that still generate cash.

https://www.msn.com/en-us/money/companies/ford-and-honda-scrap-struggling-models-after-billions-in-losses/ar-AA1WQpGe