General Motors and Honda have both announced that their plan to continue co-development of cheaper electric vehicles has come to an end. The two first announced an EV partnership in 2021, and it has already borne fruit in the Honda Prologue (pictured above) and Acura ZDX, which use GM's Ultium platform.
It was only a year ago when GM and Honda announced their plans to co-develop more affordable EVs. But as demand for EVs wanes and automakers are reevaluating aggressive electrification plans, GM and Honda have decied to cancel this project. News of this came came from Honda CEO Toshihiro Mibe during an interview with Bloomberg.
"After studying this for a year, we decided that this would be difficult as a business, so at the moment, we are ending development of an affordable EV," Mibe told Bloomberg. Sanaz Marbley, a spokesperson for General Motors, further confirmed the situation in an email to the Detroit Free Press earlier this week.
"Last year, we began working on an affordable EV program for global markets, which was slated for introduction in 2027," said Marbley. "After extensive studies and analysis, we have come to a mutual decision to discontinue the program. Each company remains committed to affordability in the EV market."
On October 17, GM announced its plans to delay production of the Chevy Silverado EV and GMC Sierra EV pickups for an entire year, which represents a delay in capital expenditure nearing $1.5 billion. Earlier this week, GM also confirmed that it would be slowing the rollout of the Chevrolet Equinox EV.
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