TOKYO: Honda Motor Chief Executive Toshihiro Mibe has secured shareholder approval for his reappointment to the company’s board at the annual general meeting, despite growing scrutiny over the automaker’s weakest financial performance in decades.
The company recently posted its first annual loss in 70 years, driven by more than $9 billion in restructuring costs linked to its electric vehicle business and rising pressure from Chinese competitors in global markets.
“I would like to express my deepest apologies to our shareholders for the significant concern and inconvenience caused by the net loss recorded in the previous fiscal year,” Mibe told shareholders at the start of the meeting.
Shareholders approved all 11 board nominees, including nine reappointments and one new director, in line with recommendations from proxy advisory firms Glass Lewis and ISS.
Mibe said the EV-related write-down was triggered by weaker-than-expected demand, particularly in the United States, where battery-electric vehicle sales fell below forecasts and would have required heavy incentives to compete.
He warned that continuing the planned EV strategy under current conditions could have kept Honda’s automotive division in losses for five to seven years.
Mibe has faced criticism from former Honda executives in recent months, with some calling for his resignation over strategic missteps, including concerns about the company’s approach to China and its heavy reliance on EV investments, which has increased pressure on its motorcycle business.
A proposal to dismiss Mibe was raised by a shareholder during the meeting but was not voted on, as it was not part of the official agenda.
Mibe also confirmed that discussions with Nissan Motor and Mitsubishi Motors on next-generation vehicle technologies, ongoing since mid-2024, have reached an advanced stage, indicating possible future cooperation among the Japanese automakers.
