Honda Says Prologue Death Rumors Just Aren't True
Last week, we covered a report that alleged the Honda Prologue, the brand's EV that was built in partnership with General Motors, was dead. The pieces seemed to fit; Honda had just killed off three other electric vehicles, and EV demand is trending sharply downward following the suspension of Federal incentives. However, Honda says it isn't so, telling Motor1 that reports of the EV's death are greatly exaggerated.
Honda
A Honda spokesperson said the report was nothing but speculation. The automaker told the news outlet, "The Automotive News article is based purely on speculation. The Prologue remains in our lineup." Despite Honda's straightforward statement, sales figures show things don't look good for the EV. Sales have fallen hard in recent months: Honda sold 1,731 Prologues, down 74.6 percent over the same January to February span last year.
In fairness to Honda, EV sales are lower than those of gas-powered models here in the US. Automakers are incentivized to maintain the automotive status quo, largely because EV subsidies ended after President Trump's reelection. Putting aside today's shifting regulatory climate, consumers show a stronger preference for hybrids, as reflected in annual new-car registration data. Autmakers are responding to the trends by pushing back or canceling EVs. While the Prologue continues to survive for the moment, it's not hard to stay skeptical: the last few months in particular have seen a rash of EV cancellations, from Honda's own recent three-car killing spree to a handful from Ford, General Motors, and others.
Honda itself seems concerned about the impact of Chinese competitors encroaching on its overseas sales. While you can't go out and buy a new Zeekr or BYD electric car here in the US, the story is much different in other markets. When announcing the cancellation of its Honda 0 SUV and sedan (and the Acura RSX), Honda had this to say about growing competition in China: “In addition, in consideration of the intensification of competition in China, Honda reassessed the recoverability of investments accounted for using the equity method in China, and now expects to incur an impairment loss on the investments accounted for using the equity method.”