(Motorsport-Total.com) – Honda has released its worst financial report since going public in 1957 this week. Honda Motor had already expected a loss in March based on its forecasts, and this picture was confirmed on Thursday with the official figures.
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In the fiscal year ending in March, Honda suffered a loss of 423 billion yen (2.68 billion US dollars). These figures are worse than during the pandemic years, when Honda decided to fully commit to electrification and officially withdrew from Formula 1 at the end of 2021.
However, such a scenario is currently not threatening to repeat itself. In response to a request from Motorsport-Total.com, the company stated that the financial figures have no impact on Honda Racing Corporation (HRC) and therefore not on the Formula 1 project.
“Honda Motor already published its financial forecast in March before the official announcement on Thursday. The outlook has been clear since then,” the statement said. “HRC does not recognize any specific changes to motorsport activities as a result of the financial figures published on May 14.”
More interesting than the numbers themselves is their background. CEO Toshihiro Mibe explained during the presentation that the results are mainly related to the high investments in electric vehicles and the company’s electrification strategy.
These investments have so far not paid off as expected, especially not in the USA. This is partly due to the policies of the Trump administration. US buyers could receive tax credits of up to $7,500 when purchasing a new electric car, but Trump eliminated this benefit in September 2025.
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Honda’s financial results lead to several strategic changes in the automotive sector. For example, Honda has initially put on hold a planned investment of eleven billion US dollars for the production of electric cars and batteries in Canada.
From the perspective of Formula 1, it is perhaps even more interesting that Honda is abandoning its previous goal that by 2030 one-fifth of all new car sales should be electric vehicles. Mibe also confirmed that the goal of selling exclusively electric cars by 2040 has been abandoned for the time being.
More support in the Formula 1 paddock for a V8?
These strategic adjustments are exciting against the backdrop of current discussions in the Formula 1 paddock. When the current engine rules were decided, Audi and Honda were among the strongest proponents of electrification, in line with their automotive strategy.
Stefano Domenicali recently admitted in an interview with Motorsport.com that Formula 1 and the FIA may have listened too much to the manufacturers at the time, but there were hardly any alternatives. In his view, the world looks different today.
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“Personally, I clearly see – although of course it is up to the FIA to propose this – that sustainable fuels should be at the center of the future, with a different balance in electrification and a strong combustion engine,” said the Formula 1 boss.
After Domenicali, FIA President Mohammed bin Sulayem went a step further and told Reuters and other media in Miami that a V8 will “definitely return,” this time with sustainable fuels.
“It is coming. In the end, it is a matter of time. In 2031, the FIA has the possibility to enforce this without a vote from the manufacturers. Those are the rules. But we want to introduce it a year earlier, which everyone is now demanding,” said Sulayem.
So far, the idea of giving the combustion engine more weight again in the next regulations is receiving positive feedback in the paddock – including from industry leader Mercedes. “From Mercedes’ perspective, we are open to new engine rules. We love V8s. From our perspective, that is a real Mercedes engine. High-revving,” said Toto Wolff.
However, the Mercedes team boss also raised an important question: “How do we ensure that we have enough energy from the battery to not lose touch with reality? If we rely 100 percent on combustion engines, we might look a bit ridiculous in 2031 or 2030.”
“We have to consider that, make it easier, and at the same time stay at the highest engineering level. Maybe we can get 800 hp from the combustion engine and additionally generate 400 hp electrically. We are absolutely in favor as long as these discussions are conducted in a structured way.”
Ford, the current engine partner of Red Bull, is also open to a V8. Ford Performance Director Mark Rushbrook told Motorsport-Total.com that Ford originally planned to stop producing pure combustion road cars but has since reversed this decision.
Thus, Audi and Honda remain the biggest question marks regarding support for such a course change. However, Honda’s strong focus on electrification last year also did not bring the desired financial results.
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