General Motors and Honda sever their "affordable" EV agreement

 General Motors and Honda sever their "affordable" EV agreement

Honda, a Japanese manufacturer, and General Motors, a major American company, jointly declared the end of their collaboration to create reasonably priced electric cars starting in 2027, according to AFP.

According to the joint statement, the decision was made after thorough research and study. But no particular explanation was given. Industry studies indicate that cooling demand, particularly in China, was the reason for the EV development plans' halt.

In addition, GM said in a statement earlier this week that they are reducing EV manufacturing in North America in order to maintain price stability, adjust to slower-than-anticipated demand growth, and carry out improvements to engineering efficiency. 

GM and other US automakers including Ford and Stellanis (parent company of Chrysler) have also been hurt by the protracted strike by US plant workers.

Due in part to the delayed introduction of electric vehicles (EVs) after a previous emphasis on hybrid cars, Japanese manufacturers have had difficulties gaining market dominance in key regions in recent years.

The 2022 alliance aimed to create electric vehicles that were more affordable than General Motors' $30,000 Chevrolet Equinox. Honda is still committed to reaching 100% electric vehicle sales by 2040, notwithstanding this.