TOKYO — Honda CEO Toshihiro Mibe has survived a coordinated effort by a group of former senior executives to force him from power, exposing deep divisions inside Honda Motor Co. as the automaker struggles through one of the most turbulent periods in its modern history.
According to a Reuters report published June 9, retired Honda leaders spent months privately discussing ways to remove Mibe, blaming him for strategic mistakes in China, costly electric vehicle investments and what they viewed as a growing disconnect from the company’s engineering culture. Despite the pressure campaign, Honda’s board ultimately backed Mibe, allowing him to retain control of the company.
The failed ouster attempt comes as Honda faces mounting financial and competitive challenges after its aggressive push into electric vehicles resulted in massive write-downs, declining profitability and a broader strategic reset.
Honda CEO faces criticism over EV strategy and China setbacks
Former Honda executives reportedly argued that Mibe underestimated the importance of China, the world’s largest auto market, while committing billions of dollars to an EV strategy that failed to generate expected returns.
Honda’s position in China has weakened dramatically amid fierce competition from domestic EV manufacturers such as BYD and other technology-driven rivals. Earlier this year, Mibe publicly acknowledged the scale of the challenge, admitting that Chinese automakers had moved far ahead in manufacturing efficiency and development speed.
Those concerns intensified after Honda forecast its first annual loss since becoming a publicly listed company, driven largely by EV-related restructuring charges and investment write-downs.
Critics inside and outside the company viewed Honda’s EV bet as a major strategic error that left the automaker exposed just as global EV demand slowed and competitive pressures increased.
How Honda’s EV ambitions evolved into a financial burden
The current backlash stands in sharp contrast to Honda’s earlier electrification ambitions.
In 2021, Mibe outlined a long-term vision to transition Honda toward electric and fuel-cell vehicles by 2040, positioning the company among the more ambitious legacy automakers pursuing electrification.
That strategy accelerated over the following years as Honda committed significant resources to battery-electric vehicle development and production capacity.
However, weakening EV demand, changing government incentives and intensifying competition forced the company to rethink its approach. In recent months, Honda abandoned key EV sales targets, scaled back major projects and shifted its focus toward hybrid vehicles instead of a rapid all-electric transition.
The company disclosed billions of dollars in EV-related losses and restructuring costs, making the EV division one of the primary contributors to its historic financial setback.
Older developments that foreshadowed today’s crisis
In 2021, Mibe announced Honda’s goal of achieving a fully electric and fuel-cell vehicle lineup by 2040, signaling a major strategic transformation.
In 2025, Honda began slowing portions of its electrification roadmap as global EV demand softened.
In early 2026, the company revealed substantial EV-related losses and canceled several planned EV programs.
By mid-2026, internal opposition had reportedly grown strong enough that former executives attempted to remove the CEO.
Internal tensions reveal broader challenges for Honda
The dispute surrounding the Honda CEO highlights broader concerns about the company’s future direction.
Some engineers and managers felt disconnected from senior leadership, while others questioned whether Honda had drifted away from its traditional “genba” philosophy, which emphasizes close engagement with frontline operations and engineering teams.
There were also concerns that Honda’s profitable motorcycle business was effectively supporting losses within the automotive division, creating additional friction among executives and stakeholders.
Even after surviving the leadership challenge, Mibe faces the difficult task of rebuilding confidence among employees, suppliers and investors while restoring competitiveness in key global markets.
What comes next for the Honda CEO?
For now, Honda’s board remains firmly behind Mibe. Governance reforms implemented over recent years have strengthened the influence of independent directors and reduced the ability of former executives to directly influence leadership decisions.
Still, the failed ouster effort underscores the scale of frustration surrounding Honda’s recent performance.
Mibe has already taken a temporary pay cut and pledged to reduce costs, improve operational efficiency and refocus product development. The company is increasingly emphasizing hybrids while maintaining a longer-term commitment to electrification.
Whether that strategy can restore Honda’s momentum remains uncertain. What is clear is that the battle over Honda’s future is far from over, and the Honda CEO now faces intense pressure to prove that the company’s painful transition can ultimately deliver results.
Sources:
Reuters report on the failed ouster effort,
Reuters report on Honda’s annual loss and EV writedown,
EV strategy review,
AP report on Honda’s shift toward hybrids,
Report on Mibe’s comments about Chinese EV competition.
