Honda Motor Co. is facing growing internal unrest as senior executives reportedly push for the resignation of Chief Executive Officer Toshihiro Mibe following a dramatic reversal of the automaker’s electric vehicle strategy and mounting financial challenges.

Mibe, who took the helm of Honda’s transformation agenda, was widely praised in 2021 after committing the Japanese automaker to phase out internal-combustion engines and transition to a fully electric vehicle lineup by 2040.

The plan, which involved tens of billions of dollars in investment, won support from investors and environmental advocates who viewed Honda as a leader among traditional automakers embracing electrification.

However, the strategy has come under intense scrutiny amid a sharp slowdown in demand for electric vehicles, particularly in the United States, Honda’s largest automotive market.

The situation worsened after the administration of U.S. President Donald Trump eliminated federal tax incentives for electric vehicle purchases, reducing consumer demand and undermining the business case for Honda’s aggressive EV expansion.

The downturn contributed to Honda recording its first annual net loss since becoming a publicly traded company more than 70 years ago.

In response, the automaker has abandoned its target of becoming an all-electric company by 2040, marking a significant retreat from one of the industry’s most ambitious transition plans.

As the financial and strategic consequences of the shift became apparent, criticism increasingly focused on Mibe’s leadership.

According to people familiar with the matter, several senior Honda executives, including at least one board member, have begun mobilizing internal support for the CEO to step down and accept responsibility for the company’s setbacks.

Sources close to the company said growing concerns over Honda’s direction, profitability, and competitive positioning have intensified internal debates about leadership and future strategy. While no formal decision has been announced, the pressure on Mibe reflects broader challenges facing global automakers as they navigate shifting consumer demand, changing government policies, and uncertainty surrounding the pace of the electric vehicle transition.

Honda has not publicly commented on reports of internal calls for Mibe’s resignation.