Honda and GM bail on affordable EV collaboration

Honda and General Motors are scrapping a plan to collaborate on affordable EVs, Reuters reported Wednesday.

Announced in 2022, the plan would have seen the two automakers co-develop a range of affordable EVs based on a new platform intended for global markets, and using a next-generation version of GM’s Ultium battery hardware. The first EVs resulting from this effort, including compact crossovers, were to start arriving from 2027.

The decision to discontinue the project was mutual, the two automakers said in a joint effort, adding that each automaker “remains committed to affordability in the EV market.” Honda also confirmed to Reuters that there are no changes to its plan to sell only electrified vehicles by 2040. The automaker previously said it would launch EVs for North America based on its own architecture in 2026.

This isn’t the end of collaboration between Honda and GM. Honda just last week announced plans for a joint venture with GM and its Cruise autonomous-driving arm in the first half of 2024, with the aim of beginning autonomous ride-sharing in Japan in early 2026. A Honda spokesperson told Reuters that this partnership won’t be affected by California’s decision to suspend operation of Cruise vehicles on its roads.

2024 Honda Prologue

Under an alliance announced in 2020, Honda and its upscale Acura brand will each launch an electric SUV based on GM Ultium hardware, and manufactured by the U.S. automaker. Both the 2024 Honda Prologue and 2024 Acura ZDX are scheduled to start deliveries in early 2024, although that timetable will likely be dependent on GM’s ability to accelerate the slow production ramp-up of its Ultium EVs.

GM managed to produce only a handful of Ultium EVs through the third quarter, and confirmed last week that it planned to delay the ramp-up of its full-size electric pickup trucks by a year. The automaker subsequently confirmed further delays of a few months affecting both the trucks and the Chevrolet Equinox EV, which was originally due in spring 2024 with a $30,000 base price.