Honda's CEO Survived A Revolt After The Automaker's Worst Year In Decades: Report
Honda posted its first annual loss in nearly 70 years, and former execs reportedly weren't happy.
The Breakdown
- Former Honda executives reportedly tried to oust the current CEO.
- They were unhappy with Honda’s performance in China.
- Honda reported its first annual loss in nearly 70 years under the current CEO.
If things had gone differently, Honda might have a different CEO right now. Apparently, a group of former Honda executives wanted to remove Toshihiro Mibe. They were reportedly not happy with how he was running the automaker.
In recent months, Honda has made drastic changes to its operations regarding electric vehicles. It announced it would abandon its plan to go fully electric by 2040 after it killed three upcoming electric vehicles.
The company also posted its first annual loss in nearly 70 years.
Honda 0 Series SUV Concept
According to a new Reuters report, the former executives met late last year and began compiling their grievances against Mibe. They were unhappy with Honda’s performance in China and believed the CEO was focused on the wrong priorities, such as sports sponsorships.
A written summary of the discussions reviewed by the publication revealed concerns about Mibe not listening to customers and how his comments sometimes hurt morale. In April of this year, the report states that former chief executive Nobuhiko Kawamoto visited Mibe and told him to resign.
Mibe remains Honda’s CEO and will take a 30 percent pay cut due to the annual loss.
What’s Next For Honda?
With several upcoming models now canceled, the automaker plans to keep a few existing ones around for a bit longer. The Odyssey will remain in production until March 2030, when a new one arrives alongside the HR-V, which will hang around even longer.
The Accord will receive a major redesign while maintaining the current powertrain lineup. The sedan will have a sportier, more aggressive design that ditches the current car’s conservative appearance. It might become hybrid-only in 2030.
The automaker is also developing a new V6 for its next-generation hybrid systems. The powertrain will arrive next year and will feature “powerful driving performance and high towing capacity.” The new engine likely won’t be any more powerful if Honda wants its hybrids to have 30 percent better fuel economy.
Motor1’s Take: Leading Honda when it reports its first annual loss in 70 years is not a great experience, but Honda wasn’t alone in taking a huge financial hit with its shift away from EVs. Several automakers reported massive losses due to their EV endeavors, and none of their CEOs have been ousted yet.
Here's More From Honda
Source: Reuters
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