Honda and GM announced last April that they would develop a line of small crossover EVs using GM's Ultium battery by 2027, aiming for starting costs of less than $30,000. The two have no confirmed they're not moving forward with the plan.
Honda and GM are abandoning their plan to develop a line of affordable electric vehicles together. Under the program, which was announced in April 2022, the two had
that would start at less than GM’s upcoming $30,000 electric Chevrolet Equinox. The first models were expected to start releasing in 2027., saying “we decided that this would be difficult as a business, so at the moment we are ending the development of an affordable EV.” Both companies will separately continue exploring options to bring down EV costs, Mibe said.
The decision comes amid industry wide EV production slowdowns and an ongoing United Auto Workers strike, which has GM at its center. Just this week, GM announced it would bethat use its Ultium battery pack, including the Equinox, Silverado and GMC Sierra EVs. As part of the now-scrapped affordable EV program with Honda, the companies intended to develop Ultium-based small crossover SUVs to compete with Tesla.
It was just one of several projects Honda and GM have been working on together, and it doesn’t seem its dissolution will have any effect on the others. The companies a few days ago announced they’ll be working with Cruise to launch a driverless ride-hailing service in Japan in 2026.
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