Honda CEO Apologises for Company's Loss, Wins Shareholder Backing at AGM: Report

Honda shareholders approved the reappointment of Chief Executive Toshihiro Mibe to the company's board at its annual general meeting, despite the automaker's weak performance and mounting criticism over the firm's electric vehicle strategy. Opening the meeting, Mibe apologised to shareholders after Honda reported its first annual loss in seven decades last month, driven by more than $9 billion in restructuring costs linked to its electric vehicle business and growing competition from Chinese automakers.

"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's financial results," Mibe told shareholders at the start of the meeting, reported Reuters.

Shareholders also approved the appointment of the company's 10 other board nominees, including nine directors seeking re-election and one new board member. The outcome was in line with recommendations from proxy advisory firms Glass Lewis and ISS, both of which had backed all nominees.

Addressing Honda's decision to record a major writedown on its EV business, Mibe was quoted as saying the move reflected changing market conditions following the rollback of EV subsidies.

He noted that battery electric vehicle sales in the United States had fallen well short of the company's expectations, meaning the planned models would have required substantial incentives to remain competitive.

If it would have gone ahead with selling its planned EVs, "it would mean the automotive business itself staying in the red for at least five years, possibly as long as seven," Mibe said, adding that it would have created an extremely critical situation at the company.

Mibe has faced criticism in recent months from retired Honda executives over the company's strategic direction. According to people familiar with the matter, former Honda chief executive Nobuhiko Kawamoto visited the company's Tokyo headquarters in April to urge Mibe to step down.

The former executives have criticised Mibe for overlooking the Chinese market and for Honda's unsuccessful EV strategy, which contributed to the company's loss and underscored its increasing reliance on its profitable motorcycle business.

Towards the end of the meeting, one shareholder sought to introduce a motion calling for Mibe's dismissal.

The chief executive declined to put the proposal to a vote, stating that it was not part of the meeting's agenda and therefore could not be considered.

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