In April 2022, Honda and GM announced that they were working together on a new global architecture dedicated to EVs, to be used primarily for crossovers/SUVs using the latter's Ultium technology. Just a year and a half later, the companies issued a joint statement saying the discontinuation of this plan was a "mutual decision," adding that "each remains committed to affordability in the EV market."
In an interview with Bloomberg, Honda CEO Toshihiro Mibe said: "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. GM and Honda will search for a solution separately. This project itself has been canceled". As reported by Automotive News, Mibe cited cost and range as reasons for the project's cancellation, along with a "changing business environment.
Reuters suggests that the change in plans may have to do with GM's decision to slow down EV launches as a way of dealing with the high costs of the United Auto Workers union. The company recently claimed that it was uncertain whether it would make its projected profits this year, with the strike costing it about $200 million a week on top of the $800 million it has already spent.
The now-cancelled models were expected to roll out in 2027, starting in North America, before moving to other key markets, including South America and China. Honda and GM had set an ambitious goal of producing millions of these vehicles, with a target price of less than $30,000 in the US.
Despite the cancellation of this joint project, Honda and GM will continue to collaborate in other areas such as EV battery packs and autonomous driving technology. Their partnership also includes the all-electric Honda Prologue and Acura ZDX SUVs, which are built in the U.S. on GM's Ultium architecture.
Sources: Automotive News, Reuters
