Honda CEO Suddenly Apologises, What Happened?

Honda Motor CEO Toshihiro Mibe suddenly apologised as he secured renewed support to return to the board of directors at the Japanese automotive giant’s annual meeting on Friday (26/6/2026). Honda is now striving to recover from a strategic misstep after posting its first annual loss in seven decades last month. The loss was caused by restructuring costs exceeding US$9 billion for its electric vehicle business and competition from Chinese automakers. “I would like to express my deepest apologies to shareholders for the significant concern and inconvenience caused by the net loss recorded in the previous fiscal year’s financial results,” Mibe told shareholders at the start of the meeting. Besides backing Mibe, Honda shareholders approved ten other board candidates, including nine who will be reappointed and one new director. The vote aligned with advice from proxy advisers Glass Lewis and ISS, which had recommended supporting all directors. Amid cuts to electric vehicle subsidies, Honda decided to write down EV-related assets because the market share of battery-powered cars in the US is far below the company’s estimates. This means sales of planned models would require massive incentives. “If the company continued with the planned EV sales, it would mean the automotive business itself would remain loss-making for at least five years, possibly up to seven years,” Mibe said, adding that this would create a very critical situation at the company. In recent months, Mibe has faced criticism from retired Honda executives over the misstep, with former chief executive Nobuhiko Kawamoto visiting the Tokyo headquarters in April to urge him to resign, according to a source familiar with the matter. The former executives criticised Mibe for neglecting China, the world’s largest automotive market, and for the company’s failed bet on EVs that led to Honda’s loss. They also highlighted the growing reliance on its profitable motorcycle division. Towards the end of the meeting, a shareholder proposed a motion calling for Mibe’s dismissal, but the chief executive declined to put it to a vote, stating the matter was not on the agenda and therefore could not be considered. Mibe said talks with Nissan Motor and Mitsubishi Motors on cooperation in next-generation vehicle technology, ongoing since mid-2024, are at an advanced stage.