Honda, GM scrapping plans to jointly develop EVs

Honda and General Motors are no longer working together on a plan to develop electric vehicles (EVs).

“After studying this for a year, we decided that this would be difficult as a business, so at the moment we are ending development of an affordable EV,” Honda CEO Toshihiro Mibe said, according to Bloomberg. “GM and Honda will search for a solution separately. This project itself has been canceled.”

In April 2022, the car manufacturing companies first announced the plan to produce the EVs — like compact crossovers — starting in 2027. The two auto giants had previous collaborations in 2018 and 2020 on battery module redevelopment and another joint venture for the codevelopment of two EVs expected to be launched in 2024. 

“GM and Honda will share our best technology, design and manufacturing strategies to deliver affordable and desirable EVs on a global scale, including our key markets in North America, South America and China,” GM Chair and CEO Mary Barra said in a news release at the time. 

“This is a key step to deliver on our commitment to achieve carbon neutrality in our global products and operations by 2040 and eliminate tailpipe emissions from light duty vehicles in the U.S. by 2035,” Barra continued. “By working together, we’ll put people all over the world into EVs faster than either company could achieve on its own.” 

The decision to shut down the deal comes amid a United Auto Workers strike in the U.S. against three major automakers: General Motors, Stellantis and Ford. The strike has now gone on for more than a month — with the shift to EVs a major focus.

Mibe didn’t talk about the strike itself, according to Bloomberg. But, he noted cost and cruising distance issues behind the plan’s stoppage.