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Honda, GM scrap $5 bn plan to jointly develop cheaper EVs
Mint Mumbai
|October 26, 2023
Honda Motor and General Motors (GM) are scrapping a plan to jointly develop affordable electric vehicles (EVS), the companies said on Wednesday, just a year after they agreed to work together in a $5 billion effort to try to beat Tesla in sales.
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The decision underscores GM's strategic shift to slow the launch of several EV models to focus on profitability, as it grapples with the rising cost of United Auto Workers strikes, which surged to $200 million a week this month.
The US automaker on Tuesday withdrew its previous 2023 profit outlook.
"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.
Honda said there was no change in its plan to sell only electrified vehicles by 2040.
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