Honda will continue to make cuts. The company survives on internal combustion engines; making a profit on electric vehicles is much more difficult

by alex

But the company will continue to produce new electric vehicles

Honda China CEO Masuki Igarashi said in an interview with Nikkei Business News that «China will implement large-scale personnel optimization»to reduce fixed costs and accelerate the transition to clean electric vehicles.

He said the transition to new energy models will continue in 2024, with the manufacturer responding to price cuts by competitors. He added that it is difficult for the company to remain profitable today.

Late last year, Guangqi Honda, a joint venture between Honda and Guangzhou Automobile Group, laid off 900 employees. Now the manufacturer has confirmed a new round of layoffs.

The company was forced to cut prices on the Honda Accord and CR-V, with electric vehicles having a much harder time turning a profit compared to fuel-powered vehicles. Masuki Igarashi confirmed that the company will continue to make profits from ICE vehicles to survive.

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Igarashi said Honda will launch new electric vehicle factories in Guangzhou and Wuhan within the year. He added that more than two new electric vehicle models will be launched on the market every year.

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