MAY 19, 2026

Honda insists F1 project safe despite historic company losses

Honda insists its Formula 1 program remains secure despite the carmaker announcing historic financial losses and a major strategic retreat from electric vehicles.

The Japanese giant confirmed sweeping changes to its future direction after reporting massive EV-related losses for the fiscal year ending March 2026.

The company admitted global EV demand has weakened sharply due to the rollback of environmental regulations in the US and other factors, Honda said.

The result was enormous EV-related losses totalling some $10 billion, contributing to an operating loss of $2.6bn. It marked the first annual loss in Honda's more than 70-year history as a publicly listed company.

Honda is now pivoting heavily back toward hybrids.

Honda will reallocate more development and production resources into hybrid models which are currently in high demand, the company announced.

The manufacturer also confirmed it is effectively abandoning its previous ambition of becoming fully combustion-free by 2040, instead targeting broader carbon neutrality by 2050 through a mix of EVs, hybrids and carbon-offset strategies.

Honda CEO Toshihiro Mibe was even asked directly whether he would resign following the disastrous results - a question not uncommon in Japanese corporate culture after major failures.

But Mibe said his focus remains on recovery.

We will continue our research to develop future technologies including electric vehicle batteries, he said.

We will get back on a growth track.

For Formula 1, however, Honda insists there is no danger to its racing programs despite growing concerns over the company's wider financial health and the difficult start to the new electric-heavy regulations era with Aston Martin.

HRC does not foresee any specific changes to its motorsport activities resulting from the financial announcement made on May 14, a Honda Racing Corporation statement said.

(GMM)