From a myth to a huge loss, Honda collapsed overnight. The icon of the Japanese automobile industry is quietly slipping to the second rate. When I woke up, I learned that Honda had lost tens of billio

From a myth to a huge loss, Honda collapsed overnight. The icon of the Japanese automobile industry is quietly slipping to the second rate. When I woke up, I learned that Honda had lost tens of billions for the first time.

Honda has officially announced that it has lost money for the first time in 69 years since its listing, losing tens of billions of yuan. It used to make easy profits, but now it is dumbfounded. This matter is quite serious for Honda. Japan became a developed country back then, relying on home appliances, semiconductors, and automobiles to support it.

In the 1980s and 1990s, Japanese manufacturing was booming. Sony and Panasonic were engaged in home appliances, and Honda and Toyota were driving automobiles. At that time, semiconductors also led the world, and Japanese industry became a model for the world. Looking back over the years, the changes are quite obvious. Home appliances have allowed Korean and Chinese brands to catch up and surpass the past. Semiconductors have slipped from the top position. Now, cars are Japan’s strongest remaining trump card. Honda’s big loss this time is a bit revealing.

The automotive industry is changing too fast. In the past, we struggled with engines, gearboxes, and mechanical durability. Japanese cars are really good in this field. The technology accumulated over decades is not easy for others to catch up with. But now the track has changed, electric vehicles, and intelligent systems have become mainstream. Many novices have come in to compete for batteries, software, and smart gadgets. Traditional engines are no longer the focus.

Companies like Honda, which have always relied on engines to make a living, are a bit behind when it comes to electric and smart cars. The market has also changed. The global car market is booming. There are many new brands emerging. New energy vehicles are moving very fast. Whoever moves slowly will be under pressure immediately. The old days of relying on brands and old technologies to survive slowly are becoming more and more difficult.

Honda's losses are more like a signal that times have changed and old brands must quickly adapt to the new rules. Think about the peak of Japan at that time. Home appliances were exported everywhere. Sony's Walkman and Panasonic TVs were popular all over the world. Semiconductor chips were in short supply. Japanese companies made huge profits. In terms of cars, Honda's Civic and Accord were reliable and durable and sold all over the world. Toyota's Corolla was standard equipment in every household. Its exquisiteness convinced European and American car companies.

But later, South Korea's Samsung and LG took over home appliance jobs, and China's Xiaomi and Huawei also entered the market, with affordable prices and comparable functions. In terms of semiconductors, TSMC and Intel topped the list, and Japan's Toshiba and NEC slowly faded out. In terms of automobiles, Honda thought it would be stable. It had excellent engine technology and was early in hybrid cars. Vehicles such as Insight and CR-V were fuel-efficient and stable.

But the era of electric vehicles is here, and Tesla is taking the lead. Only half of Honda's advantages in battery life, autonomous driving software, and internal combustion engines are left. It has invested heavily in building battery factories and developing chip systems. The cost is huge. After the epidemic, the supply chain is in chaos, chip shortages, factory shutdowns, and sales decline. , Inventories are piling up, costs are overwhelming, and competition in the Chinese market is fierce. Local cars like BYD and NIO are low-priced and charge quickly. Honda's pure electric cars have not kept up with the pace. Exports to the United States are subject to tariffs. Europe is pushing for environmental protection. Honda's diesel cars are having a hard time.

As a result, the company lost 9.8 billion yen in the first quarter, and it is expected to be even greater for the full year. The stock price fell accordingly, employees were panicked, and executives had to think of ways to revive the company. The entire Japanese auto industry is actually struggling. Toyota has also begun to promote electric vehicles, and Nissan has made efforts in intelligence. However, Honda's this time is the first big signal, proving that the old road is no longer working. It must speed up the track change, learn from South Korea's Hyundai, quickly go electric, outsource software to Google, and cooperate with giants such as Apple.

Japan's economy is originally driven by exports, with cars accounting for the majority. This landslide has shaken the entire chain. The Bank of Japan reported that the manufacturing confidence index has dropped to a multi-year low. The government must subsidize the transformation and help car companies develop batteries and build charging networks. Otherwise, the second-rate position will be confirmed.

Honda employees recalled that the factory used to work overtime to rush orders, but now the machines are idle, the warehouse is full of cars, sales are worried about sales, and suppliers are waiting for money. From the perspective of consumers, Honda cars are reliable, but in the electric era, there are concerns about battery life and inconvenience of charging. The new Honda e is promising, but it can be priced high. It cannot compete with the Tesla Model 3, and sales are mediocre.

In the long run, Japanese cars will have to switch from mechanical to ecological, battery recycling, and software updates. Honda is doing it, but the steps are small. After losing money, it may be forced to take big steps, merge resources, join forces with other Japanese companies, and develop shared platforms to save money and quickly. This loss is not the end, but a turning point. Japanese cars must wake up and seize the wave of electric intelligence, otherwise they will really fall behind.