Honda And GM Change Their Minds About Developing EV For Less Than $30,000
Automakers Honda and General Motors (GM) will not jointly develop cheap electric vehicles.
“After extensive research and analysis, we have come to the mutual decision to discontinue the program. Each company remains committed to ensuring market accessibility of electric vehicles,” the statement said.
In April 2022, the companies agreed to develop a series of cheap electric vehicles from 2027. As the media noted, the agreement was concluded to bypass the large electric vehicle manufacturer Tesla.
GM’s own plans to expand its electric vehicle lineup and expand its Ultium platform were thwarted by a strike by industry workers belonging to the UAW union. Each week of the strike cost GM about $200 million in losses, and the company was forced to admit that it would delay production of the Equinox EV, Silverado EV RST and GMC Sierra. In addition, the corporation will now not be able to produce 400,000 electric vehicles in North America by the middle of next year.
Honda Motor CEO Toshihiro Mibe said that the idea of jointly developing affordable electric vehicles with GM in today’s rapidly deteriorating environment no longer seems successful, and therefore will have to be abandoned.
