- A plan between Honda and General Motors to co-develop sub-$30k cheap EVs has been scrapped, after a joint statement from the companies.
- GM still believes it can provide a budget EV offering in the form of its own Chevrolet Bolt.
- The news comes in contrast to other manufacturers who have sub-$30k EVs in the works.
A $5bn partnership between General Motors and Honda to co-produce millions of affordable electric cars from 2027, announced only a year ago, has been scrapped, as reported by Bloomberg. The joint venture would have made use of GM’s Ultium battery technology to create budget EVs, including compact electric SUVs, with starting prices under $30k.
In a joint statement, the two companies said: “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, delved further into the reasons behind the fall through of the alliance, citing cost concerns and range issues with the project. Mibe added that each company will now search for an affordable EV solution ‘separately’. Honda also confirmed that the cancellation will not affect its goal of a fully-electrified vehicle portfolio in North America by 2040.
This move won’t affect the future of GM’s own Chevrolet Bolt electric car, which already starts at around $26,500. GM CEO Mary Barra has called the budget Bolt a ‘better option’ for the company, as opposed to the now-defunct Honda partnership.
Other partnerships between the two companies will remain in place despite the move, such as the upcoming Honda Prologue and Acura ZDX electric SUVs, both built around GM’s Ultium platform.
Whilst it seems Honda and General Motors have been unsuccessful in bringing together a budget electric car, that can’t be said for other EV manufacturers. Tesla has plans to bring in a future model with a price tag around the $25k mark, whilst BYD are also offering electric vehicles with a similar price tag.