Wednesday, January 8, 2025

Honda’s made-in-America EVs

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Thanks for reading Hyperdrive, Bloomberg's newsletter on the future of the auto world. Read today's featured story in full online here.

A Glimpse Into Honda's Future

Honda revealed two electric vehicle prototypes heralding a wave of new battery-powered models it plans to release in the years ahead, though the carmaker may slow the pace of its EV investments if demand continues to lose steam.

The two models — a sedan and and SUV — will be built at Honda's plant in Ohio and sold in the US starting early next year, the company said. They're the first of 30 new EVs Honda plans to introduce globally by 2030.

Renderings of the Honda 0 Saloon and SUV. Source: Honda

The company is aiming for 100% zero-emission auto sales in North America by 2040, but has indicated it's open to shifting gears if EVs continue to lose momentum. That may be exacerbated if President-elect Donald Trump follows through on threats to do away with EV tax credits.

"Some investment plans may be delayed as growth slows down, but we haven't changed our thinking on bringing more EVs to market," Katsushi Inoue, a senior managing director in charge of EV business development, said in an interview. "EVs will go mainstream over a longer-term time frame."

The Japanese carmaker displayed the near-production models of its 0 Series sedan and midsize SUV at CES in Las Vegas, saying both models will be equipped with an in-house operating system called Asimo that controls functions such as advanced driver-assistance features.

The Honda 0 Saloon interior. Source: Honda

The automaker's Marysville, Ohio, plant will start building those EVs this year alongside traditional gas-powered cars. The all-electrics will use batteries from a $4.4 billion joint-venture factory with LG Energy Solution. Honda is also investing $11 billion in EV production in Ontario, and receiving billions in dollars of financial aid from the Canadian government.

Inoue said Honda doesn't expect that subsidy package to change after Prime Minister Justin Trudeau announced plans to resign.

Honda also said on Tuesday that it's partnering with Japan's Renesas Electronics on a high-performance system-on-chip for use in 0 series models later this decade. The chip is designed to simplify vehicles by integrating multiple functions into a single electronic control unit.

The companies aim to develop a system "that achieves one of the industry's top class AI performances," Honda said.

— By Chester Dawson

More From CES

Scout Motors' Terra pickup, left, and Traveler SUV concepts. Source: Scout Motors

Scout Motors, maker of a new line of electrified SUVs and pickup trucks backed by Volkswagen, says what most US car buyers want from the brand now is models equipped with a gasoline-fueled engine to back up the battery. Reservations for hybrid versions of the Traveler SUV and Terra pickup, which are scheduled to debut in 2027, are outstripping demand for the pure EVs, Scott Keogh, Scout's CEO, told Bloomberg Television's Ed Ludlow at CES, formerly known as the Consumer Electronics Show.

News Briefs

Before You Go

The final inspection area of Tesla's Model Y factory outside Berlin. Photographer: Patrick Pleul/Getty Images

Tesla could collect 0ver €1 billion ($1 billion) in compensation from rival automakers that need help meeting tougher pollution standards in the European Union this year, UBS analysts said. The company will pool the fleet of electric vehicles it sells this year with at least five other manufacturers, led by Toyota, Stellantis and Ford, according to an EU document. The arrangement allows carmakers to average out the emissions of their fleets, with those selling fewer EVs compensating companies like Tesla that over-comply with limits on carbon dioxide emissions.

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