Honda Motor Seeks 1.5 Trillion Yen in Cost-Cutting Measures

Honda Motor Co Ltd (HMC) announced a $9.4B cost-saving plan by 2030 to counter Chinese competition. Shares fell 2.5% after the news. HMC's P/S ratio is 0.31, below historical and industry norms, indicating market skepticism. GF Value™ suggests it's 5.4% undervalued at $32.03. Institutional interest is mixed, with 6 gurus trimming and 2 adding positions.

Honda Motor Co. (HMC) plans $9.4B cost cuts by 2030 to address EV losses exceeding $12B, shifting focus to hybrids. Current P/S ratio is 0.38, below historical median. GF Score is 71/100, with strong profitability and growth but weak momentum.

Honda (7267) aims to cut $9.4 billion in costs by 2030, targeting 30% reductions in key components, as it competes with Chinese EV makers like BYD (1211). The company is urging suppliers to lower prices and source more parts from lower-tier, including Chinese, manufacturers. Honda reported its first annual loss in May, shifting focus to gasoline-electric hybrids.

Honda plans to cut over $9 billion in costs by 2030, targeting suppliers to reduce prices by 30% in key parts categories. The move aims to counter competition from Chinese EV makers and improve competitiveness, according to internal documents and sources. Honda reported its first annual loss in May and is shifting focus to hybrids. The company declined to comment on specific targets.

Honda (7267) halted a Canada EV project, canceled three U.S. EV models, and moved Civic hybrid production to Indiana. A proposed 50% U.S. tariff on Canadian car imports may force Honda to close Canadian plants, disrupting supply chains and U.S. sales, according to Reuters.

Honda and Nissan agreed to jointly develop standardized vehicle hardware and software for next-gen software-defined vehicles, aiming for implementation by fiscal 2029. The partnership seeks to accelerate innovation and reduce costs. The companies previously explored a merger but canceled plans in February 2025, opting for strategic collaboration instead.