Honda Ends Affordable EV Project with General Motors Due to Rising Costs

Cost pressures, rising borrowing rates, and raw materials costs force Honda to abandon joint initiative to build a low-cost electric car model with General Motors.

Honda and General Motors have abandoned a joint project intended to create affordable electric vehicles (EVs), citing rising costs and changing market conditions.
The partnership, announced in April 2022, originally aimed to produce millions of EVs costing less than $30,000, using GM's Ultium battery technology, starting 2027.
Besides rising costs, the cancellation has also been affected by slowing demand for EVs and an ongoing United Auto Workers strike having a significant financial impact on GM.
Despite this setback, both companies remain committed to the EV market, with GM focusing on scaling its Ultium platform and Honda aiming for 100% electrified vehicle sales by 2040.
Other existing partnerships between GM and Honda, including the Honda Prologue EV development and their joint work in hydrogen fuel cells and autonomous vehicles, remain unaffected.