Key facts
- Retired Honda executives met privately to discuss issues with CEO Toshihiro Mibe.
- They blamed Mibe for neglecting China and a "failed" bet on electric vehicles.
- Former CEO Nobuhiko Kawamoto met with Mibe and told him to resign.
- Mibe remains CEO and has the backing of the board.
- Honda backtracked on its all-electric pledge by 2040 and wrote down $9 billion in EV-related costs.
- Mibe will take a 30% pay cut for three months due to the annual loss.
A group of retired Honda Motor executives attempted to orchestrate the ouster of CEO Toshihiro Mibe, blaming him for the company's struggles in the electric vehicle (EV) market and its declining share in China. The executives met privately for months, detailing their grievances, which included Mibe's perceived neglect of the Chinese market and an overemphasis on golf sponsorships rather than core business.
By April, the dissent culminated in a meeting where former CEO Nobuhiko Kawamoto directly urged Mibe to resign. However, Mibe, who became CEO in 2021, has remained in his position, reportedly due to the backing of Honda's board. This internal turmoil comes as Honda, like many legacy automakers, grapples with the expensive transition to EVs while defending its traditional business.
Honda recently backtracked on its commitment to be fully electric by 2040 and incurred significant EV-related costs, writing down approximately $9 billion. This move follows similar write-offs by rivals like Ford, GM, and Nissan. Mibe has agreed to a 30% pay cut for three months to take responsibility for the company's projected annual loss. The company stated it was unaware of the discussions by former executives and is working to improve its business through cost control and resource reallocation.