Honda Motor, GM Nix EV Partnership
News comes one year after automakers agreed to a $5 billion effort to inject more affordability into the electrified market.
The two firms had partnered to develop a series of lower-priced EVs.
IMAGE: Pexels
Honda Motor and General Motors have decided not to proceed with joint plans to develop affordable electric vehicles, the companies said.
"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," the companies said in a joint statement.
The news comes just over a year after the automakers agreed to collaborate in a $5 billion effort to compete with Tesla in sales.
GM's decision reflects a strategic shift to prioritize profitability by slowing the release of EV models amid the costly United Auto Workers strikes, reported Reuters, which said Honda still confirmed its commitment to selling only electrified vehicles by 2040.
The two firms had agreed to develop a series of lower-priced EVs based on a new joint platform, producing potentially millions of cars from 2027, according to the article.
"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," Honda CEO Toshihiro Mibe told Bloomberg.
The announcement comes after GM executives during the automaker's third-quarter earnings call said they're delaying several EV launches.
Originally posted on Auto Dealer Today
More Showroom
Auto Transaction Prices Hit New Height
October sales of big, pricey models push up the average, even as budget-conscious consumers snag more economical options.
Read More →
Making the Safe Choice
Kelley Blue Book has turned households with teen drivers onto safe and affordable options for their vehicles of choice
Read More →
Inventory Holds Steady
September new-vehicle inventory rose slightly month-over-month, but dealer lots are laden with MY2026 vehicles as the typical model year changeover trudges along.
Read More →
October Auto Sales Fall With the Leaves
A forecast anticipates retail deliveries are down this month as consumers continue to face cost challenges, though more are tapping long loans in order to buy.
Read More →
California Sees Quarterly Gains
California’s new-vehicle market saw a boost in hybrids in the third quarter and its first overall quarterly market gain of the year.
Read More →
New-Vehicle Prices Stay Put
Affordability pressures and model availability shaped new-vehicle sales in September, according to an analysis by Kelley Blue Book.
Read More →
EV Buyer Consideration Shifts
What drives American consumers to purchase an electric vehicle is shifting as the question moves away from Should I?' to 'Which features and experience do I want to have?'
Read More →
Year-to-Date Auto Sales Holding Their Own
A forecast through August shows that automakers have shifted strategies to keep deliveries and revenues up despite tariffs and other economic challenges.
Read More →
Slow to Robo
Ten years of polling consumers shows autonomous vehicles’ profiles have risen considerably, but even more people now want at least some level of control if they go that route.
Read More →
Dealers a Little Down
A third-quarter Cox Automotive survey finds them in a mixed mood, bummed by fallen customer traffic but encouraged by better profits, costs and EV interest.
Read More →