Honda, GM Scrap Plan for Jointly Developed Line of Lower-Priced Electric Vehicles, Says Honda Spokesman
26 October 2023 - 1:48AM
Dow Jones News
By River Davis
TOKYO-General Motors and Honda Motor have decided that their
plan to develop a line of lower-priced electric vehicles is not
viable, a year and a half after the companies announced the joint
effort, a Honda spokesman said Wednesday.
GM and Honda said in April 2022 that they would develop a series
of lower-cost EVs expected to be priced below $30,000 in the U.S.
The companies expected to produce millions of the cars fitted with
GM's Ultium battery from 2027 onward.
Honda said Wednesday that plans for the affordable EVs have been
scrapped for the time being, though the companies are continuing to
work on a number of projects together, including a recently
announced initiative to bring a driverless ride service to
Tokyo.
The announcement comes as a growing number of automakers flag
concerns about the profitability of EVs and the viability of the
market. On Tuesday, GM abandoned a target to build 400,000 EVs by
mid-2024, citing slowing demand for the vehicles.
Write to River Davis at river.davis@wsj.com
(END) Dow Jones Newswires
October 25, 2023 10:33 ET (14:33 GMT)
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