Honda hit by historic $3.6bn disaster as Aston Martin F1 project in crisis

Honda are experiencing difficulties away from F1 as well as in the sport, with the electrical vehicle (EV) branch of the brand hit by a huge loss.

The Japanese car manufacturers are set for their first annual loss in 70 years of business as a listed company, with a $15.7billion restructuring in their EV department partly to blame.

US President Donald Trump has ended support for EV projects since starting his second term in office, causing some car giants around the world to rethink their strategies.

On top of this, Trump has also placed some huge tariffs on brands from outside of the US who are operating in the US, although a recent Supreme Court sitting ruled that these tariffs were unlawful and lacked the Congressional authority that they needed, so some brands will receive refunds in the future.

Honda have experienced weaker-than-expected demand for their EVs, and the restructuring of the EV arm of the business means that overall they are set to record an annual loss of 570billion yen ($3.6billion).

The fiscal year ends in March, and the loss is a huge turnaround in the previous predicted forecast from the Japanese car manufacturers of a 550billion yen profit.

READ MORE: Honda chief furious over Aston Martin fiasco as daily Newey meetings revealed

Honda's F1 struggles

Things must just feel like they are going from bad to worse for Honda at the moment, with their racing arm also experiencing some major issues in their new partnership with Aston Martin.

Honda have returned to F1 as the power unit supplier for Aston Martin in 2026, but they are experiencing both power and reliability issues, causing Aston Martin to be running right at the back of the pack, despite having a car that has been designed by legend Adrian Newey.

Aston Martin completed the fewest laps of all the teams during winter pre-season testing, and then struggled greatly at the Australian Grand Prix last weekend, with neither of their drivers finishing the race.

Lance Stroll was not classified in either qualifying nor the race, while Newey has revealed that two-time world champion Fernando Alonso is in a 'hard mental place'.

It's in stark contrast to Honda's previous partnership with Red Bull, which yielded four drivers' championships and two constructors' titles.

F1 HEADLINES: Aston Martin short on parts as Alonso preps for Chinese GP nightmare

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