Sign up to save tools and stay up to date with the latest in AI
bg
bg
1

GM and Honda Abandon Plans for Affordable Electric Vehicles: Reasons Behind the Decision

Oct 25, 2023 - techtimes.com
General Motors (GM) and Honda Motor have called off their partnership to develop affordable electric vehicles (EVs) due to a decrease in demand and changes in market conditions. The collaboration, announced over a year ago, aimed to use GM's Ultium battery technology to produce millions of EVs for the global market at around $30,000 each. However, increased manufacturing costs, inadequate infrastructure, and slower-than-expected customer demand led to the termination of the project 18 months after its announcement.

Despite the cancellation of this specific EV initiative, GM and Honda will continue to work together on other projects, including GM's production of the 2024 Honda Prologue EV, and partnerships in autonomous cars and hydrogen fuel cells. They recently announced a joint venture to provide a robotaxi service in Japan, expected to launch in 2026. The decision to end the affordable EV project does not affect GM's Bolt initiatives, and both companies remain committed to affordability in the EV industry.

Key takeaways:

  • General Motors (GM) and Honda Motor have canceled their collaboration to co-develop inexpensive electric vehicles (EVs) due to a slowdown in demand and changes in market conditions.
  • The partnership, announced over a year ago, aimed to use GM's next-generation Ultium battery technology to produce millions of EVs for the worldwide market at a price point of around $30,000.
  • Despite the cancellation of this specific project, GM and Honda will continue to collaborate on other projects, including GM's production of the 2024 Honda Prologue EV, autonomous cars, and hydrogen fuel cells.
  • GM, Cruise, and Honda announced a new joint venture to provide a robotaxi service in Japan, expected to launch in early 2026 with a fleet of specially constructed Cruise Origin cars.
View Full Article

Comments (0)

Be the first to comment!