Out of Juice: Honda and GM Halt Joint Venture to Develop Affordable Electric Cars

Honda and General Motors have ended a joint venture aimed at creating a new range of cost-effective electric vehicles (EVs).

Ars Technica reports that Honda and GM have called off their ambitious partnership that aimed to bring affordable EVs to the markets of North America, South America, and China. The collaboration, which many hoped would promote the democratization of green technology in the automotive industry, was expected to see results in 2027.

US President Joe Biden, with General Motors CEO Mary Barra, looks at a Chevrolet Silverado EV as he tours the 2022 North American International Auto Show at Huntington Place Convention Center in Detroit, Michigan on September 14, 2022. – Biden is visiting the auto show to highlight electric vehicle manufacturing. (Photo by MANDEL NGAN / AFP) (Photo by MANDEL NGAN/AFP via Getty Images)

“After extensive studies and analysis, we have come to a mutual decision to discontinue the program. Each company remains committed to affordability in the EV market,” the companies said in a joint statement. The decision came after a year of careful study and analysis, which revealed that creating an affordable EV platform presented significant business challenges.

The canceled platform was intended to feature GM’s Ultium batteries, a technology that was supposed to lower the overall cost of EVs. However, the mass production of these batteries has been met with difficulties, casting a shadow over the project’s viability.

Honda CEO Toshihiro Mibe shared insights into the decision, stating, “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.” He further clarified that both companies would now seek solutions independently, marking the end of this particular joint venture.

Despite this setback, it’s not the end of the road for collaborations between Honda and GM. The automotive giants continue to work together on various other projects, including the development of electric crossovers and a robust fast-charging network in North America.

Breitbart News previously reported that GM is among the automakers who are slowing down their EV plans:

On Wednesday, Tesla joined General Motors and Ford in being cautious about expanding EV production capacity, with the company’s CEO Elon Musk saying he was worried that higher borrowing costs would prevent potential customers from affording Tesla vehicles, according to a report by Reuters.

“People hesitate to buy a new car if there’s uncertainty in the economy,” Musk reportedly said on a post-earnings call. “I don’t want to be going into top speed into uncertainty.”