Honda and GM End Joint Development of Affordable EVs

Will Honda and GM find alternative ways to make EVs more affordable without their joint project?

Honda and GM have announced that they will no longer be collaborating on the development of a global range of affordable electric vehicles (EVs). The project, which aimed to release these EVs in 2027, has been discontinued due to business difficulties, according to Honda CEO Toshihiro Mibe. The decision has been confirmed by GM spokesperson Sanaz Marbley, who stated that both companies remain committed to affordability in the EV market. This news raises questions about the future of their collaboration on battery technology.

Back in April 2022, Honda and GM announced plans to co-develop a series of affordable electric vehicles using next-generation battery technology. The goal was to produce millions of EVs starting in 2027, with a focus on small crossovers. The announcement also mentioned further collaboration on battery technology to improve performance and reduce cost.

However, after a year of study and analysis, Honda CEO Toshihiro Mibe revealed that the development of an affordable EV was deemed difficult as a business. As a result, the project has been discontinued.

GM spokesperson Sanaz Marbley confirmed this decision and emphasized that both companies are committed to affordability in the EV market. It is unclear whether they will continue to collaborate on battery technology.

While this announcement is significant, it does not affect other projects that Honda and GM are working on together. The new Honda Prologue and Acura ZDX, for example, are still in development and will use GM’s Ultium battery technology. These crossovers are set to be built alongside their GM siblings.

GM recently announced a slowdown in the production of electric pickup trucks to meet changing demand. The future of the Bolt, GM’s most popular EV, is also uncertain. Additionally, Honda’s current lineup of affordable EVs is limited, and their plans for future models based on the e:N Architecture are scheduled for release in 2026.

In conclusion, the discontinuation of Honda and GM’s joint development of affordable EVs raises questions about the future of their collaboration. While other projects are unaffected, it remains to be seen how both automakers will proceed in the EV market and whether they will continue to work together on battery technology.

• Honda and GM have decided to end their joint development of affordable electric vehicles (EVs)
• The project was scheduled to release these EVs in 2027
• Business difficulties were cited as the reason for ending the project
• The decision has no impact on other ongoing projects between the two automakers
• The future of their collaboration on battery technology is uncertain

The decision to end the joint development of affordable EVs by Honda and GM brings uncertainty to their collaboration in the EV market. Both companies remain committed to affordability, but the future of their partnership in battery technology remains uncertain. As the EV market continues to evolve, it will be interesting to see how these automakers adapt and innovate.