One of the most serious internal conflicts in decades has erupted at Honda. A group of former company executives had been discussing for several months the possibility of CEO Toshihiro Mibe's resignation, accusing him of strategic miscalculations and the automaker's deteriorating position.
The main complaints are related to the unsuccessful bet on electric vehicles and the weakening of Honda's position in China. Earlier, the company was forced to revise its electrification program and write off about 2.5 trillion yen (approximately 15.7 billion dollars) as part of the restructuring of the electric division. This was one of the reasons for Honda's first annual loss since its IPO in 1957.
The Chinese market proved particularly painful. While local manufacturers like BYD actively increased sales of cars with modern software and advanced technologies, Honda lost market share and failed to offer sufficiently competitive products.
Despite the pressure, the board of directors maintained support for the current CEO. Mibe himself has already announced measures to cut costs and strengthen the hybrid direction. The company also plans to launch 13 new hybrid models starting in 2027.
The situation shows how risky the transition to new technologies has become for traditional automakers. A mistake in choosing a strategy today can cost not only billions of dollars, but also the company head's position.