Honda ends collaboration with GM on affordable electric vehicles

author: FutureCar Staff    

Fans of cheaper electric vehicles received disappointing news as the planned collaboration between Honda and General Motors on a range of affordable EVs has been canceled. The joint project, which was announced in April 2022, aimed to develop a new platform for lower-cost EVs in North America, South America, and China, with the release of cars expected in 2027. However, on Thursday, both companies announced that the plan has been abandoned.

In a joint statement, Honda and GM explained, "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." Honda CEO Toshihiro Mibe further stated in an interview with Bloomberg, "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. GM and Honda will search for a solution separately. This project itself has been canceled."

The now-canceled platform was intended to utilize GM's Ultium batteries, which were introduced in 2020 as the company's third-generation lithium-ion cell, developed in collaboration with LG Chem. GM CEO Mary Barra had previously stated that Ultium cells would become cost-effective, dropping below the $100/kWh barrier "early in the platform's life." In 2022, the first Ultium-based EVs, including the GMC Hummer EV, the Cadillac Lyriq, and the BrightDrop Zevo 600, went into production.

Despite claims that Ultium cells were ready for mass production, GM and LG Chem have faced challenges in turning this into a reality. In July, GM had to halt production of BrightDrop vehicles in Canada due to a shortage of battery cells. Sales data from Kelly Blue Book for the first three quarters of 2023 indicate that only 6,920 Ultium-based EVs (including the Chevrolet Blazer and Silverado EV, as well as the Hummer, Lyriq, and BrightDrop van) were delivered to customers.

By comparison, Chevrolet sold 49,494 Bolts, which use an older and more expensive battery chemistry, during the same nine-month period. GM had previously announced plans to end Bolt production in 2023 at its plant in Orion Township, Michigan, in order to retool and begin producing electric trucks in 2024. However, it was recently revealed that EV truck production has been delayed until late 2025. Despite this delay, it does not signify a reprieve for the Bolt.

GM has attributed the Ultium bottleneck to an unspecified "automation equipment supplier." Despite the cancellation of the EV collaboration, Honda and GM are still working together on other joint projects. The Honda Prologue and Acura ZDX, a pair of electric crossovers, will continue to use the same platform as the Cadillac Lyriq and Chevrolet Blazer. These vehicles will also feature Apple CarPlay and Android Auto, which GM controversially plans to eliminate from its cars starting in model year 2024.

Furthermore, GM and Honda, along with BMW, Hyundai, Kia, Mercedes-Benz, and Stellantis, are partners in a new North American fast-charging network. The seven automakers have announced plans to deploy 30,000 fast chargers across the US and Canada, with the rollout scheduled to begin in 2024.

In another collaboration, Honda has recently announced that in 2026, it aims to launch a robotaxi service in Japan using the Cruise Origin, an autonomous electric vehicle developed by the GM-backed AV company. However, this latest development may face challenges following news that California has suspended Cruise's permission to operate autonomous vehicles after a tragic incident in which a pedestrian, who had already been hit by another car, was run over and dragged by a Cruise AV in San Francisco.

FutureCar Staff