Japan’s second-largest automaker, Honda Motor’s shares fell sharply Friday after it warned it could report its first annual loss in nearly 70 years as a publicly listed company.
The stock dropped 5.6% in Tokyo, becoming one of the biggest decliners on Japan’s Nikkei 225 index.
Honda said it expects up to $15.7 billion in restructuring charges linked to its electric vehicle strategy, which led to the cancellation of three EV models for production in the US.
The move came after the Trump administration recently ended EV purchase subsidies.
Honda is also cutting down the value of its China business, where BYD competition has intensified. The Chinese automaker has gained market share with more advanced, software-driven electric vehicles.