On Thursday, US behemoth General Motors and Japanese automaker Honda announced that they were ending their partnership, which intended to produce “affordable” electric vehicles starting in 2027.
The companies released a statement saying, “We have mutually decided to discontinue the programme after extensive studies and analysis.”
There was no explanation provided, although it is said that manufacturers are reducing their intentions to expand their EV lineups due to cooling demand, especially in China.
GM stated this week that it was “moderating the acceleration of EV production in North America to protect our pricing, adjust to slower near-term growth in demand, and implement engineering efficiency and other improvements” .
A protracted strike by American factory workers has also hurt GM and other US automakers.
Because they have long prioritised hybrid cars over electric vehicles, Japanese automakers have lost market share in important areas in recent years as a result of the sluggish adoption of EVs.
The partnership, which was announced in 2022, aimed to create electric vehicles at a lower cost than the $30,000 Chevrolet Equinox that the US company had in mind
Honda continued by saying that it still aimed to sell only electric cars by 2040.