Honda to phase out gas-powered cars by 2040 in North America

Business News

FILE – In this Jan. 11, 2016, file photo, the logo of Honda Motor Co. is seen on a Honda vehicle at the Japanese automaker’s headquarters in Tokyo. Honda, on Tuesday, Aug. 4, 2020, is recalling over 1.6 million minivans and SUVs in the U.S. to fix problems that include faulty backup camera displays, malfunctioning dashboard lights and sliding doors that don’t latch properly. They cover certain Odyssey minivans from 2018 to 2020, Pilot SUVs from 2019 through 2021 and Passport SUVs from 2019 and 2020. (AP Photo/Shuji Kajiyama, File)

NEW YORK (AP) — Japanese automaker Honda said Friday that it plans to phase out all of its gasoline-powered vehicles in North America by 2040, making it the latest major automaker with a goal of becoming carbon neutral.

The announcement came as leaders of the major global economies met for President Joe Biden’s climate summit. Biden has an ambitious goal of slashing America’s greenhouse gas emissions in half by 2030.

Honda CEO Toshihiro Mibe said the company expects that 40% of all of its North American vehicle sales will be battery or fuel-cell powered by 2030, and 80% of all vehicles sold will be battery-electric or fuel-cell powered by 2035.

Part of Honda’s plan involves a new electric-vehicle platform the company is calling e:Architecture, but did not provide specifics. These vehicles will roll out in the second half of this decade, the company said.

Most of the Honda’s development will go toward battery-powered electric vehicles, but the company said it will also put resources into developing hydrogen-powered fuel cell vehicles, in collaboration with General Motors. GM has set a goal of making the vast majority of the vehicles it produces electric by 2035, and the entire company carbon neutral, including operations, five years after that.

Honda also plans to be selling electric or fuel-cell vehicles entirely in China and Japan by 2040.

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