Honda and General Motors have decided to abandon their plan to collaborate on affordable electric vehicles (EVs). The collaboration, which was announced in 2022, aimed to develop a range of affordable EVs based on a new platform intended for global markets, using a next-generation version of GM’s Ultium battery hardware. The first result of this partnership was expected to be compact crossovers that would start arriving in the market by 2027.
However, according to a report from Reuters, the decision to discontinue the project was mutual and both automakers expressed their commitment to affordability in the EV market. Honda also confirmed that there would be no changes to its plan to sell only electrified vehicles by 2040. The Japanese automaker had previously announced its intention to launch EVs for the North American market based on its own architecture in 2026.
While the collaboration on affordable EVs has come to an end, Honda and GM still have other joint projects in the works. Just last week, Honda announced plans for a joint venture with GM and its Cruise autonomous-driving arm, with the aim of starting autonomous ride-sharing in Japan in early 2026. This collaboration is not expected to be affected by the recent decision in California to suspend the operation of Cruise vehicles on its roads.
In another collaboration between Honda and GM, the two automakers, under an alliance announced in 2020, will each launch an electric SUV based on GM’s Ultium hardware. These vehicles, the 2024 Honda Prologue and 2024 Acura ZDX, are scheduled to begin deliveries in early 2024. However, the production ramp-up of GM’s Ultium EVs has been slower than anticipated, and it may impact the delivery timeline of these vehicles.
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GM has faced production challenges with its Ultium EVs, and by the end of the third quarter, the company had only produced a small number of these vehicles. Last week, GM announced a year-long delay in the ramp-up of its full-size electric pickup trucks. Additionally, the company confirmed further delays of a few months for both the trucks and the Chevrolet Equinox EV, originally scheduled for release in spring 2024 with a base price of $30,000.
Despite the setbacks and the discontinuation of their collaboration on affordable EVs, both Honda and GM remain committed to advancing the adoption of electric vehicles and making them more accessible to consumers. This aligns with the broader industry trend of automakers transitioning towards electric mobility to reduce carbon emissions and combat climate change.
For Honda, their plan to sell only electrified vehicles by 2040 demonstrates a long-term commitment to sustainable transportation solutions. The company aims to play a pivotal role in supporting the global transition to electrification and reducing its environmental impact.
As for GM, despite the production challenges, the company has been investing heavily in electric and autonomous technologies. The Ultium platform, which underpins their EVs, is a key component of their strategy to become a market leader in electric mobility. GM plans to launch 30 new electric vehicles globally by 2025 and aims to achieve a fully electric future.
In conclusion, while the collaboration between Honda and GM on affordable EVs has been discontinued, both companies remain committed to the electrification of their vehicle lineup. The decision to discontinue the partnership was mutual, and Honda has confirmed that it will continue its own electrification plans. Additionally, the two automakers have other joint projects in progress, such as the development of electric SUVs based on GM’s Ultium hardware. Despite production challenges, both Honda and GM are focused on advancing the adoption of electric vehicles and contributing to a more sustainable transportation future.
