Honda Halts $15B Ontario EV Chain, Drops 2040 All-Electric Goal

Automakers have back-pedalled before—GM scrapped its EV1 in 2003 and Ford killed the Edsel in 1959—when consumer uptake lagged executive ambition. Honda’s retreat underscores two systemic forces: volatile policy signals (U.S. tax credits removed in 2025, new tariffs) and China’s cost-advantaged battery supply redefining competitiveness. The episode fits a century-long pattern of technology waves surging and receding with subsidy cycles; internal-combustion dominance lasted after the 1970s oil shocks faded, and EVs may likewise face a plateau before the next regulatory or price shock. Whether this pause is a blip or a hinge moment will shape North American industrial strategy for decades, but on a 100-year timeline it exemplifies how market adoption, not boardroom proclamations, ultimately dictates drivetrain revolutions.