The vibes at Honda are pretty damn rancid right now, thanks to the fact that it blew up its electric vehicle plans and suffered its first annual loss since going public in 1957. Because of that disaster, a handful of retired Honda executives got together at the end of last year — meeting privately to discuss issues facing the company and the person they felt was the major cause: CEO Toshihiro Mibe.
Reuters reports that the group blamed Mibe — who has been CEO since 2021 — for neglecting China, the world’s largest car market, and making a “failed” bet on electric vehicles that cost Honda $5.7 billion in 2025. It was the company’s first annual loss in seven decades. In a biting criticism, the group of “old guard” executives accused Mibe of paying more attention to Honda’s golf sponsorships than its core business. They spoke for months over text but also had meetings and meals that included some current executives, according to a written summary of their discussions reviewed by Reuters, as well as interviews with two participants.
In April of this year, things reached a boiling point with the group. That’s when former CEO Nobuhiko Kawamoto — who led Honda from 1990 to 1998 — visited its Tokyo headquarters to implore Mibe to resign, according to three people familiar with the meeting. Kawamoto, who still retains a significant influence over the company and has previously intervened to force out a successor, confirmed a meeting between him and Mibe took place, but he wouldn’t comment further.
The “old guard” is worried Mibe isn’t living up to the sort of principles Honda’s founder, Soichiro Honda, put in place, which they call “Oyaji,” or “old man,” as Reuters explains:
A key to Honda’s success has been a focus on the “genba,” or the “actual place” where work gets done. At Honda, that means salesrooms, factory floors and the roads where its products are used. Losing sight of it is an unpardonable sin for managers.”The CEO does not see conditions on the ground or listen to customers, and doesn’t go to the genba,” the alumni said, according to the summary. “Senior management, including the CEO, do not visit the genba. Example: China.”
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Mibe, the alumni argued, was too focused on Honda’s golf sponsorship, including playing rounds with Akie and Chisato Iwai, pro sisters supported by the company.
Clearly, none of this has bothered Mibe too much, because he’s still at the helm.
Mibe’s defiance
Despite the fact that these heavy-hitter former executives, including the 90-year-old Kawamoto, have lost faith in him, Mibe has been able to withstand the pressure thanks to the fact he’s still backed by Honda’s board of directors. Of course, things can always change, but his job seems safe… for now.
Even before Kawamoto had a chance to meet with him, the nominating committee of Honda’s board had already decided he could stay on, according to Reuters. Recently, the automaker has created board committees with more outside directors as regulators push to improve corporate governance. Moves like that are being done at many Japanese companies in an effort to reduce the influence of retired bosses like Kawamoto. It would explain why he doesn’t have quite as much pull as he once did.
In an ever-so-slight concession, Mibe agreed to take a 30% paycut for three months as his penance for being at the helm during Honda’s first annual loss.
In a statement to Reuters, Honda said it had no knowledge of discussions by former executives, and it was working with suppliers (who also apparently voiced concerns) to improve its car business through cost control and the reallocation of resources. The statement added that its sports sponsorship was handled appropriately to enhance its brand and fulfill corporate social responsibility requirements. Clearly, that golf comment rattled someone at Honda. I’d love to know their thoughts on everything around its partnership with the 2028 Los Angeles Olympics and, hell, Honda’s tempestuous involvement in Formula 1.
Mibe says he’s got a plan to turn Honda around, and it includes cutting of the cost of the automaker’s new hybrid powertrain by 30%. Here’s the rub, though: two execs tell Reuters that they haven’t been consulted on the potential cost-saving measures, so who knows what’s going to happen?
