GM and Honda Cancel Affordable Electric Vehicle Collaboration
GM and Honda announced that they have abandoned their previously announced affordable electric vehicle (EV) development plan. The two automobile giants stated that they stopped working on a common platform that they planned to launch in 2027.
Why Did GM and Honda Collaborate?
GM and Honda announced that they would cooperate to develop affordable electric vehicles with an agreement they made in 2020. This deal aimed to combine GM's Ultium battery technology with Honda's design and engineering capabilities.
Thanks to this cooperation, the two companies aimed to be more competitive in the electric vehicle market, reduce production costs and reduce carbon emissions. They also had a deal for GM's Ultium-based Honda Prologue and Acura ZDX SUVs.
Why Did GM and Honda Give Up on Collaboration?
GM and Honda announced in a joint statement that they canceled their plans to develop affordable electric vehicles. The reason behind this decision is that both companies want to focus on their own electric vehicle projects.
“As a result of the research and analysis, both parties decided to terminate the development work,” Honda said. Honda stated that it will continue its electric vehicle strategy and aims for 2030% of global automobile sales to be electric by 40.
In its third quarter financial results announced yesterday, GM announced that it has revised its electric vehicle production targets. The company said it abandoned its goal of producing 2022 thousand electric vehicles from 2024 to mid-400 due to semiconductor shortages, rising material costs and global economic uncertainty. Additionally, Chevrolet announced that it was delaying the launch of the Equinox EV model by a few months.
What Will Be the Situation of GM and Honda in the Electric Vehicle Market?
GM and Honda's decision to abandon their affordable electric vehicle collaboration shows that competition in the electric vehicle market is increasing. Both companies have chosen their own ways to strengthen their brands and provide better products to their customers.
GM will continue to be the leader in the electric vehicle market. The company will launch many electric vehicle models under its brands such as Cadillac, GMC, Chevrolet and Buick with Ultium battery technology. GM plans to have all its new vehicles zero-emission by 2035.
Honda, on the other hand, will work to be more assertive in the electric vehicle market. The company will develop its own electric vehicle platform e:Architecture and introduce its first model in 2024. Honda is also working on new battery technologies to be used in electric vehicles.
GM and Honda canceled their affordable electric vehicle collaboration, intensifying the competition in the electric vehicle market. Both companies will continue to work to realize their electric vehicle visions.