{"id":19060,"date":"2026-09-03T20:00:16","date_gmt":"2026-09-04T00:00:16","guid":{"rendered":"https:\/\/www.autonocion.com\/us\/?p=19060"},"modified":"2026-09-03T16:20:17","modified_gmt":"2026-09-03T20:20:17","slug":"honda-suppliers-budget-update","status":"publish","type":"post","link":"https:\/\/www.autonocion.com\/us\/honda-suppliers-budget-update\/","title":{"rendered":"Honda Gave Each of Its Suppliers a Cost-Cutting Target. One Source Says the Demand Is So Severe That Most of Them Are Not Going to Hit It"},"content":{"rendered":"

Is Honda in trouble? A recent report from Reuters claimed the Japanese automaker is scrambling to cut costs as part of its goal to save $9.4 billion by 2030. This comes after President Donald Trump demanded a 50% tariff on vehicles imported from Canada<\/a>. Another blow.<\/p>\n

According to reports, Honda recently met with suppliers, asking them to reduce their costs in an attempt to lower overall production costs. Each supplier was given a specific target for cost-cutting. This means the suppliers would be the ones losing out on money at Honda’s request.\u00a0Honda is also looking to source stuff from Chinese suppliers as a further cost-cutting plan.<\/p>\n

The source told Reuters that the demand for cost reductions is “so severe” that suppliers will likely not meet it.<\/p>\n

Honda is leaving EVs behind<\/h2>\n

Honda is likely having a bit of a meltdown after experiencing its first-ever annual loss as a publicly traded company. The total net loss was around $2.7 billion for the fiscal year ending March 31st, 2026.<\/p>\n

Youch.<\/p>\n

The loss can be traced to a few challenges, including tariffs and competition from Chinese automakers undercutting Honda’s pricing. The biggest one, however, is a pivot from EVs.<\/p>\n

Honda is expecting its EV losses to soar to over $12 billion. Like many automakers, Honda was forced to make a dramatic pivot after the Trump Administration cut tax incentives for new EVs, and interest plummeted amidst the government’s anti-EV rhetoric and rulings.<\/p>\n

Earlier this year, Honda canceled three electric vehicles planned for North America, wasting tons of money on development that ultimately didn’t matter. This included the Honda 0 Series Saloon, the 0 Series SUV, and the Acura RSX EV.<\/p>\n

Instead, Honda is focusing on its hybrid lineup.<\/p>\n

What vehicles does Honda have planned for 2027?<\/h2>\n

For 2027, Honda’s lineup favors hybrids over EVs, with the EV push scaled back but not entirely dead.<\/p>\n

The next-generation Civic is expected to arrive around 2027 (though some reports point to a 2028 model year), and early renderings suggest a more mature look inside and out \u2014 though Honda hasn’t confirmed final styling yet.<\/p>\n

The Accord, now three-plus years into its current cycle, is also expected to get a refresh with a new face and interior, based on similar speculative previews. Both are likely to lean on Honda’s next-gen e:HEV hybrid system, which the automaker is positioning as the backbone of its lineup through the back half of the decade.<\/p>\n

Between 2027 and 2031, Honda plans to roll out 13 new hybrid models globally, all built around that updated e:HEV platform for better efficiency and tighter packaging, along with expanded driver-assist tech across the range.<\/p>\n

On the EV side, Honda isn’t bailing entirely \u2014 the 0 SUV, built in Ohio, is expected to be the first production model to debut in 2027, followed by the closely related 0 Saloon. The 0 SUV was originally targeted for 2026, so its slip to 2027 lines up with everything else going on at the company right now.<\/p>\n

There’s also a small but telling cosmetic shift coming: Honda’s new borderless H emblem will debut in 2027, appearing on EVs and next-generation hybrids rather than the classic badge. It’s a minor detail, but it fits the bigger picture: Honda using 2027 as a soft reset, easing EVs back onto the calendar while making hybrids and gas-powered mainstays like the Civic and Accord do the heavy lifting.<\/p>\n","protected":false},"excerpt":{"rendered":"

Is Honda in trouble? A recent report from Reuters claimed the Japanese automaker is scrambling to cut costs as part … <\/p>\n

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