Episode #1292: Today we unpack Honda’s massive $15.7B EV write-down and pivot back to hybrids, Rivian’s make-or-break R2 SUV aimed at the mainstream market, and Ford CEO Jim Farley’s vow to keep the manual Mustang alive

Show Notes with links:

Honda is taking a massive $15.7 billion writedown as it cancels several EV programs and pivots back toward hybrids, underscoring just how quickly the EV demand outlook has shifted.
- Honda will cancel three planned U.S. EVs — the Honda 0 Saloon, 0 SUV, and Acura RSX — just months before production, as well as reviewing the future direction of the Sony Honda Mobility joint venture.
- The automaker’s Honda Prologue, built by GM in Mexico, could also disappear after its current production run ends in December, with no plans for a Gen 2 vehicle.
- The Prologue launched in 2024 and sold nearly 39,000 units in 2025. But after the tax credit was eliminated, sales plunged 74% in 2026.

Rivian is attempting one of the toughest transitions in the auto industry — moving from a niche EV startup selling $90K adventure trucks to a true mass-market brand.
- CEO RJ Scaringe calls the upcoming R2 SUV a “make-or-break” product for Rivian as the company tries to scale beyond wealthy early adopters.
- The R2 launches this spring with a $57,990 version offering up to 330 miles of range, followed by a $45,000 model next year aimed squarely at mainstream buyers.
- As Rivian’s chief software officer put it: “We know there are just two companies in the U.S. who know how to do it: Tesla and us.”

While manual transmissions continue disappearing across the industry, Ford CEO Jim Farley says the Mustang will keep its third pedal for as long as the company has a choice.
- Speaking at the Australian Grand Prix, Farley doubled down on Ford’s stance (although it wasn’t the most natural phrasing): “Out of our cold, dead hands will we not have a manual Mustang.”
- Farley framed the decision as part of Ford’s identity, saying the brand aims to serve “working people and enthusiast drivers” and keep building cars that aren’t boring.

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