Honda EV strategy under fire as old guard challenges CEO leadership

A leadership battle is unfolding inside Honda Motor, where retired senior executives have attempted (and failed) to force out Chief Executive Toshihiro Mibe, over what they describe as costly strategic missteps in China and electric vehicles.

According to discussions reviewed by Reuters, a group of former Honda leaders privately convened over several months, exchanging messages and meeting in person to assess the company’s direction. Their conclusion: Honda’s current leadership had weakened its competitive position in the global auto race.

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Honda EV Strategy and $12 Billion Risk Exposure

The group accused Mibe of misjudging Honda’s electric vehicle (EV) strategy, including a shift that now threatens the company with up to $12 billion in EV-related write-downs after cancelled development projects.

They also criticized the company’s limited focus on China—the world’s largest auto market—and claimed resources were misallocated toward branding efforts rather than core engineering priorities.

By April, pressure escalated when former chief executive Nobuhiko Kawamoto reportedly told Mibe to step down during a meeting at Honda headquarters. Mibe refused to resign and remains in office.

Corporate Governance and Board Support

Despite internal opposition, Honda’s board has backed Mibe, reflecting a broader shift in Japanese corporate governance, where independent directors have reduced the influence of former executives in succession decisions.

Honda has been under pressure from rising Chinese EV competitors, U.S. tariffs, and weakening demand for electric vehicles in Japan. The company recently reversed parts of its EV roadmap, abandoning three vehicle programs and recording significant financial losses.

Automotive Industry Under Pressure

The situation at Honda reflects wider strain across the global auto sector. Competitors such as Ford and GM have collectively written off more than $25 billion in EV investments as they adjust strategies in a rapidly changing market.

Honda said in response to Reuters inquiries that it had no knowledge of internal alumni discussions and remains focused on cost control, supplier alignment, and new driver-assistance technologies.

Mibe has accepted a 30% pay cut for three months in response to the company’s annual loss, but the leadership tension signals deeper uncertainty over Honda’s long-term direction.