Electric vehicle rethink to cost Honda almost $16 billion

Japan's Honda said Thursday it expected to book nearly $16 billion in expenses and losses related to a major reorientation of its electric vehicle (EV) strategy. Honda believed EVs would be the optimal solution from a long-term perspective. Based on this belief, Honda shifted its strategic direction toward the popularization of EVs.

The firm said that the profitability of its auto business was declining because of the United States government policy and tariffs. It said that in response to the slowdown of the EV market in North America, it could write down investments in China prompted by intensified competition there.