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.

Honda could have ended up with a new leader if events had unfolded another way. A group of former executives reportedly aimed to push out Toshihiro Mibe over dissatisfaction with his leadership approach.

Over the past several months Honda has adjusted its electric vehicle strategy significantly. It dropped the goal of full electrification by 2040 and canceled three planned battery models.

The firm also recorded its first yearly loss in close to seven decades.

Honda 0 Series SUV Concept

Photo by: Honda

A recent Reuters account indicates the former leaders gathered toward the end of last year to list their complaints about Mibe. They cited weak results in China and felt the CEO was emphasizing incorrect areas such as sports partnerships.

Notes from those talks seen by the outlet highlighted worries that Mibe was not attentive to buyer feedback and that some of his remarks lowered employee spirits. The report adds that in April former chief Nobuhiko Kawamoto met with Mibe and urged him to step down.

Mibe continues as CEO and will accept a 30 percent reduction in compensation because of the yearly shortfall.

Plans Ahead For Honda

After canceling several future models the company intends to extend production of certain current vehicles. The Odyssey stays in the lineup until March 2030 when a successor launches along with the HR-V which will continue even further.

The Accord is set for a substantial update while keeping its existing powertrains. The sedan will feature a bolder more dynamic look that moves away from its current understated style. It could switch to hybrid power only by 2030.

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The firm is also creating a fresh V6 for upcoming hybrid powertrains. The engine arrives next year and promises strong performance along with solid towing ability. The new unit is unlikely to deliver extra output if Honda targets 30 percent gains in fuel efficiency.

Motor1’s Take: Guiding Honda through its first annual loss in 70 years is difficult yet the company was not unique in facing major costs while pivoting from electric vehicles. Multiple manufacturers posted large shortfalls tied to EV programs and none of their leaders have been removed so far.

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Source: Reuters