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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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Join Paul J Daly and Kyle Mountsier every morning for the Automotive State of the Union podcast as they connect the dots across car dealerships, retail trends, emerging tech like AI, and cultural shifts—bringing clarity, speed, and people-first insight to automotive leaders navigating a rapidly changing industry.

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