Honda maintains that its F1 project is secure despite the company's significant historical losses.

      Honda maintains that its Formula 1 program is secure, despite the automaker revealing significant financial losses and a substantial shift in strategy away from electric vehicles. The Japanese company confirmed major changes to its future strategy after posting significant losses connected to electric vehicles for the fiscal year ending March 2026.

      Honda acknowledged that global demand for electric vehicles has plummeted sharply "due to the rollback of environmental regulations in the U.S. and other factors." This led to substantial losses amounting to around $10 billion in the electric vehicle sector, contributing to an overall operating loss of $2.6 billion. This marked the first annual loss in Honda’s history of over 70 years as a publicly traded company.

      The company is now making a strong shift back toward hybrid vehicles. "Honda will reallocate more development and production resources into hybrid models which are currently in high demand," the firm stated. It also confirmed that it is essentially abandoning its previous goal of being fully combustion-free by 2040 and is instead aiming for broader "carbon neutrality" by 2050 through a combination of electric vehicles, hybrids, and carbon-offset strategies.

      Honda CEO Toshihiro Mibe was directly asked if he would resign in light of the disappointing results—a question often posed in Japanese corporate culture after significant setbacks. However, Mibe affirmed that his focus is on recovery. "We will continue our research to develop future technologies including electric vehicle batteries," he stated. "We will get back on a growth track."

      Regarding Formula 1, Honda asserts that there is no threat to its racing programs, despite rising concerns about the company’s overall financial situation and the challenging start to the new era of electric-heavy regulations with Aston Martin. "HRC does not foresee any specific changes to its motorsport activities resulting from the financial announcement made on May 14," said a statement from Honda Racing Corporation.