Honda shareholders back Mibe after first annual loss in seven decades

Honda shareholders backed Toshihiro Mibe’s reappointment to the automaker’s board on Friday at Honda Motor Co.’s annual meeting in Tokyo, after he apologized for the company’s poor financial performance and its first annual loss in nearly seven decades. The vote approved all 10 board nominees, including Mibe and nine other directors, after Honda posted an operating loss of 414.3 billion yen for the fiscal year ended March 2026 and EV-related losses of 1.45 trillion yen.

Honda’s costly rethink of its electrification strategy has hit earnings. On March 12, Honda canceled development and market launch of three North America EV models after reassessing the business environment, including U.S. tariff policy and weaker competitiveness in Asia as resources were diverted into EV development. In May, Honda also scrapped its long-term goal of having EVs account for 20% of new car sales in 2030 and dropped its target of a full shift to EV or fuel-cell vehicle sales by 2040.

Honda indefinitely suspended its Canada EV project, an $11 billion investment plan that would have been its largest ever in the country, and expected another 500 billion yen in EV-related costs in the current fiscal year. Honda cited a weak share position in battery-powered cars in the United States and a subsidy environment that has become less favorable, making some planned models harder to sell without heavy incentives.

Honda expects to return to profitability in the current fiscal year, helped by cost cuts and its motorcycle business. The company kept its annual dividend at 70 yen per share and pledged at least 800 billion yen in shareholder returns over three years.

Honda revised its slate in May and will move to a board where outside directors form a majority, make the Nominating and Compensation Committees fully independent, and appoint an outside director as board chair. Honda faced criticism from retired Honda executives after former chief executive Nobuhiko Kawamoto visited headquarters in April to urge Mibe to resign. Honda is also in talks with Nissan and Mitsubishi on cooperation in next-generation vehicle technologies.