2026 Honda CR-V vs. 2026 Toyota RAV4: Which is Best for You?
The new CR-V and RAV4 are very closely matched, but there are a few key differences to note.
Honda is reconsidering its approach to electrification. This week, the automaker announced the cancellation of three EVs, the first of which was originally scheduled to enter production later this year. That decision casts significant doubt on Honda’s other projects, including its partnership with Sony.
The Acura RSX, Honda 0-Series SUV, and 0-Series Saloon will no longer move forward, and rumors persist that the General Motors-built Prologue EV will be discontinued, with production ending late in 2026.
Honda said its “decision was made as part of the reassessment of the company’s automobile electrification strategy due to various factors, including recent changes in the business environment.” The automaker blames its slide in profitability on tariffs and a decline in its ability to compete in Asia, driven by heavy investments in electrification.
The move will leave Honda without an EV on sale in North America. While buyers here haven’t enthusiastically jumped on the electrification train as they have in other countries, Honda operates a global business, and significant changes in one region often have a heavy impact in others. That said, it’s still possible – likely, even – that the company decides on a more mainstream approach to EVs instead of building the futuristic 0-Series cars.
Honda’s project with Sony is also now up in the air. The Afeela 1 was expected to go on sale this year and has already entered pre-production in Ohio. We don’t yet know whether the already announced cancellations will affect the Sony Honda Mobility project. Still, it’s clear that the Honda of the near future will look different from the automaker we’ve seen to date.
Since the Afeela 1 is already well underway, Honda may move ahead with limited production while continuing to push more of its popular existing models, many of which are hybrid.
While it might sound like a sinking ship, none of this means that Honda is in panic mode or that it’s struggling overall. It does suggest that the automaker may write off its significant investments, and it could have an impact on jobs at Honda’s Ohio facility, but so far, the company has been adamant that its operations there are flexible enough to manage a range of production applications.r
