Honda Motor CEO Toshihiro Mibe has apologized to shareholders after the Japanese automaker reported its first annual loss in nearly 70 years, but investors still backed his reappointment during the company’s annual general meeting in Tokyo.
WEBDESK – MEDIABITES – REUTERS
The crisis-hit automaker has been struggling with expensive electric vehicle restructuring, fierce competition from Chinese carmakers and slowing EV demand in key global markets.
Addressing shareholders at the meeting, Mibe said he deeply regretted the company’s weak financial performance and the concerns caused to investors.
“I would like to express my deepest apologies to our shareholders for the significant concern and inconvenience caused by the net loss recorded in the previous fiscal year,” Mibe said.
Despite mounting criticism, shareholders approved all 11 board nominees, including Mibe and nine reappointed directors, reflecting continued investor confidence in Honda’s recovery strategy.
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Honda posted a massive financial setback last month after recording more than $9 billion in EV-related restructuring costs. The company admitted that planned electric vehicle sales in the United States had fallen far below expectations, partly due to reduced EV subsidies and rising competition.
Mibe defended the decision to scale back EV ambitions, warning that continuing with earlier plans could have pushed Honda’s automotive business into losses for another five to seven years.
The Honda chief has recently faced growing pressure from former executives, including ex-CEO Nobuhiko Kawamoto, who reportedly urged him to resign over what critics described as poor strategic decisions and failure to respond effectively to China’s rapidly evolving EV market.
Former executives have also questioned Honda’s increasing dependence on its profitable motorcycle business while its automobile division struggles globally.
Tensions surfaced again during the shareholder meeting when one investor attempted to introduce a motion seeking Mibe’s dismissal. However, the proposal was rejected from voting because it was not officially included on the meeting agenda.
Meanwhile, Honda confirmed that talks with Nissan and Mitsubishi Motors regarding cooperation on next-generation vehicle technologies have entered an advanced stage.
The discussions are seen as part of broader efforts by Japanese automakers to strengthen alliances and compete more aggressively against Chinese EV manufacturers and Tesla in the rapidly changing global automotive industry.
