Honda Motor Co., Ltd. President Toshihiro Mibu apologized to shareholders on Friday for the company's first net loss since its 1957 listing [1].

The financial collapse marks a critical failure in Honda's transition to electric vehicles, signaling a volatile period for one of Japan's most prominent automakers.

During the annual shareholders' meeting, Mibu addressed a net loss that reached between ¥4,000 billion [1] and ¥4,200 billion [2]. The company said the deficit was due to a "de-engine" strategy that failed to materialize as planned [3]. This included the cancellation of several planned EV models after the U.S. administration ended EV subsidies [3].

"I deeply apologize for the worry and inconvenience caused," Mibu said [4]. He said that the company was unable to respond flexibly to the significant changes that occurred in 2025 [5].

The meeting, which lasted approximately two hours [6], was marked by tension from investors. Some shareholders called for Mibu's immediate dismissal, with one anonymous shareholder asking what explanation the company could provide regarding the response to such a massive deficit [7].

Despite the public outcry and demands for leadership changes, the company's governance structure remained intact. Shareholders approved the appointment of 11 director candidates [6].

This financial downturn follows a period of aggressive pivoting toward electrification. The loss of U.S. subsidies created a gap in the company's projected revenue, and forced a reassessment of its global EV rollout [3].

“"I deeply apologize for the worry and inconvenience caused."”

Honda's massive loss underscores the high risk associated with the global automotive shift to electric vehicles. By tying its strategy heavily to U.S. government subsidies, Honda left itself vulnerable to political shifts in Washington. The approval of the board despite the losses suggests that while shareholders are frustrated, they may still trust the current leadership's ability to pivot the company's strategy away from the failed 'de-engine' approach.