Honda reports first expected annual loss in nearly 70 years

These are two completely different entities. Their budgets are not connected in any way is my guess… 

The automotive industry is going to be taking a big hit and there will be plenty more losses reported. 

The motorcycle side boomed worldwide and made up for it. Most of Hondas losses for the year on the car side are related to charges due to electric vehicle production and stop production in particular. They lost a lot of money on that(production cancellation fees). However being the world's largest motorcycle company by a large margin brought them back the other way they still made a few billion extra dollars for the year all said and done. 

For the fiscal year ending March 31, 2025, Honda Motor Company's (AlphaQuery) annual net income was approximately $5.52B,. 

https://www.rideapart.com/features/786989/honda-sales-motorcycles-cars-…

Loss is from dropping their EV program. Nothing to do with bikes. 
Invested heavily into EV’s but decided to scrap it cause they’re not selling 

I saw where every major car mfg lost most of their market share in China to domestic companies. It was a big hit for all of them. The Chinese have crossed the threshold of more than 50% EV or hybrid and their domestic product is better than all of the other EV’s other than Tesla. 

This is one reason Honda went back to the Dakar. Dakar and MotoGP are a huge deal in SE Asia. India in particular is the world’s largest motorcycle market. Honda’ former partner there Hero is the worlds 2nd largest MC company and does not export. Bajaj ,TVS and Royal Enfield are not far behind  

The EV cut has a total potential estimated loss of between $7.5b and $15b. Yup, that's with a B. When you look above that they didn't make that in net profits, yeah, the ledger is gonna be ugly.

https://www.thedrive.com/news/honda-kills-three-us-built-evs-before-they-ever-launch-taking-up-to-7-5-billion-loss

The bike division is completely separate, so this won't have any effect on it. Where it will show is in the automotive division. R&D resources, etc... that were all moved to clean sheet EV products now have to pivot back to lagging ICE platforms that were deemed expendable (until they weren't).

The bigger question is for HRC. Their complete debacle of an F1 powertrain for Aston Martin will have ramifications across the board as they are a much smaller entity. Won't affect dirt bikes, but MotoGP engine development (all new for 2027) may suffer.

Also, they messed up with the new Accord. In the past the Accord had a nice looking sport model with the 2.0 Turbo..Now everything is low HP hybrid -  no more turbo. 

All you people saying the bike budgets separate dont understand the corporate world.  They definitely will take money from different divisions and move it around.  Can you imagine how good motorcycles could be if the manufacturers didn't take R&D money from motorcycles and put it into side by sides?  They make 45 models of side by sides.  And 4 of them sell.  The other 41 models have 5,000$ rebates.  You dont come out with an all-new side by side just to rebate it $5K after three months on the market.  Those are called bad business decisions. Side by sides are taking R&D and rebates away from Motorcycles.  They also take the best engineers off motorcycles and have them design cars or SxS.  Its a shame

Not at Honda. Not a drop of $ into SXS from motorcycle budgets. They aren't Polaris or CanAm, or even Yamaha/Kawasaki. Honda developed the Talon then shelved all R&D just like they did for moat everything else save CRF/Rs. Honda dropped their factory SXS race teams for this year and the Talon is being discontinued after 2026.

And if you think the Pioneers are getting R&D budgets/upgrades go buy some oceanside property in Nevada. Typical Honda fashion: come out with something solid that meets (but doesn't exceed) the market status quo, then sit on it for a decade or more and wonder why it doesn't sell after the initial hype has passed on.

Honda only sells SXS to the farmers and ranchers that have always bought Honda ATVs. As much as I love Honda, they are woefully behind in the SXS market and don't care to catch up.

Respectfully, just like any company, separate divisions have separate budgets. That said, it still comes down to the overall bottom line for any company regardless of how one of its divisions performs. So, anything is always possible. The good news is Honda, like most Japanese companies play the "long game".

imagine if the lawrence brothers had to find a new ride.. yes they would do well, but not nearly as well?

They could probably do as well on a Kove given a bit of time.

Lots of armchair executives here, Honda has gone public with the expectation of a net loss for the whole company for the first time in 70 years.  No doubt everyone across the company is being asked to tighten the belt to soften the loss, regardless of budget or not.  

Not particularly aimed at Honda but I'm not buying an EV and I'm not buying a mid-level trim (or lower) truck for $60K+. I'll run my shit into the ground before then.

You are right they are two separate entity's. But I am not sure if you tuned in for the DV vs Lucas Mirtal call. 

As an agent he was saying that the reason Honda pays such a high amount to their moto guys is not all about Motorbikes. They are investing in the idea of Jett fans buying anything Honda, simply because Jett rides their bikes. 

It could be very likely if they were to trim some fat, it could be moto. 

I don't believe the sky is falling however. Just a cringe moment on pulp I remember.  

Seen a few sites say Tesla as well. I personally have never drove or owned either so I have no dog in this fight. I believe I also read a Chinese company has overtaken Tesla as the number one selling electric manufacture world wide. 

Bro... Honda cars and bikes onlyhave a same name... the logo is different the font in honda is different, they don't even have nsx as halo car which honda-moto athletescould endorse... they rather buy european supercars...

Not discrediting the legendary Mirtl but there is bigger chance that people buy yamaha pianos after watching diaperboys weekly antics.

Even in years of a lackluster product line, Honda dominates motorcycle sales figures. Honda has thier own money to lend and it provides a tremendous advantage which spells over into many other areas.

Been a lifelong chevy truck guy (had 6 silverados in the past, last one was a 2017) got rid of that truck with 60k miles because I was worried about terrible transmission issues. Went with a new ridgeline and I cannot believe how nice this vehicle is. Its priced better than all of the other trucks and is more reliable and has more features honestly cannot believe they aren't more popular. 

The motocross budget is part of Hondas overall advertising budget. How they figure out what that budget is, I don’t know, but the race team gets a percentage of whatever the bigs set up for advertising. 

 So the automotive department get so much, the motorcycle department gets so much etc etc and then HRC gets so much and they fund all the race teams. 

 Most of the individual team works as its own little company with a budget, and if they want extra money it’s up to them to them to get it. 

 If these Chinese companies will bring in a simple, affordable car that the other auto makers refuse to build - I hope they shut the lights off at Chevrolet, (whatever is left of) Dodge, and Ford for good. $90k F250's, $75k Suburbans, and $85k Grand Wagoneers aren't what the majority of people want or need out of a daily driver. I'm old enough to remember sub $15k Civics, Neon's, Cavalier's, and $10k base Rangers and B2200's - and them fuckers were all over the road. 

Thing that only exists through subsidies, turns out not to be profitable. 

Who would have thought. 

EV sales in the US were down 46% after the tax credits were eliminated and are continuing to be slow. 

Other  auto makers do not 'refuse to build' .. they are not allowed to build at a huge loss, which is then covered by their government, until all normal companies are bankrupt. 

Its like Amazon, its easy to be cheapest when you are selling at a loss, just to kill the competition. 

This is why tarrifs are the key. because no matter how cheap they are, you make them the same price as yours,  which would work great, if the Western world hadnt shipped all the jobs east . 

I'm in the market for a new truck and I'm just disgusted at what they are msrp'd at. Chevy/GMC, Ford and Ram can eat all the dicks. I'll rent a truck when I need one before I pay what they are putting these thing on the lot for.

That's not even touching on all the recalls happening.

Honda does some strange things.  I interviewed with them about 15 years ago on the motorcycle side.  They told me that if I did a good job in the role that I could move to ANY other division within Honda.  Aviation, Automotive, Robotics, Racing, etc.  Now what does a dirt bike jockey know about robotics!?

I spend half of my time in Colombia and about 70% of the population uses motorcycles as every day transport.  I would say that the percentage of Hondas is less then 5%.  Yamaha is the strongest Japanese brand here by far and has a factory where they assemble scooters and small bikes.  Honda has gained a little market share in MX since Jett however.

I feel that. My work van is a Chevy 3500 Express cargo van extended wheelbase with the 6.0, sliding side door and the tow package. I bought it in 2021 for $10k with 226k on the clock. To replace it with a 2025 unit of the same or almost the same specs would be $50k or better. Not happening any time soon

Honda does things the way they do. At their heart they are an engineering and engine company. They move people around and want versatility from a lot of their people. Engineers will work on a project and then be moved to another division or project. A very unique working environment