Honda and General Motors end ‘affordable’ EV partnership
General Motors have jointly announced the discontinuation of their partnership aimed at producing affordable electric vehicles from 2027, AFP reported. The decision comes after extensive studies and analysis, the joint statement said. However, no specific reason was provided.
Industry reports suggest the slowdown in EV expansion plans were caused by cooling demand, especially in China. GM's statement earlier this week also indicated they are moderating EV production in North America to protect pricing, adapt to reduced near-term demand growth, and implement engineering efficiency enhancements. The extended strike by US factory workers has also impacted GM and other US automakers such as Ford and Stellanis (Chrysler parent).
Japanese automakers have faced market share challenges in crucial markets in recent years, partly due to a delayed rollout of EVs, with a historical focus on hybrid vehicles. The 2022 partnership's goal was to develop electric cars priced lower than GM's $30,000 Chevrolet Equinox. Despite this, Honda maintains its commitment to achieving 100 percent EV sales by 2040.
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