Honda and General Motors have jointly decided to terminate their planned partnership for the development of budget-friendly electric vehicles, as revealed in a Wednesday report by Reuters.
Initially unveiled in 2022, the collaboration was set to have both automotive giants working together to create an assortment of economically priced electric vehicles. The project aimed to utilize a novel platform designed for international markets, integrating a forthcoming iteration of GM’s Ultium battery technology. The first array of electric vehicles from this endeavor, featuring compact crossover models, was projected to make its debut in 2027.
2024 Chevrolet Equinox EV
Both companies clarified that the decision to dissolve the joint venture was reached amicably. They added that each company still prioritizes making electric vehicles accessible in terms of cost. Honda further reassured Reuters that its previously announced objective of offering only electrified models by 2040 remains unaffected. Honda has also confirmed its intent to release electric vehicles for the North American market, based on its proprietary platform, by 2026.
Despite this setback, collaborative efforts between Honda and General Motors are far from concluded. Just last week, Honda revealed its intentions to initiate a joint venture with General Motors and Cruise, GM’s subsidiary focusing on autonomous driving technology. This partnership aims to commence autonomous ride-sharing services in Japan by the early part of 2026. A Honda representative confirmed to Reuters that this alliance would not be impacted by California’s recent decision to halt Cruise vehicles’ operations within the state.
2024 Honda Prologue
Under a separate agreement declared in 2020, both Honda and its luxury division, Acura, are set to introduce electric SUVs utilizing GM’s Ultium hardware and manufactured by the American automaker. Both the 2024 Honda Prologue and the 2024 Acura ZDX are on schedule to begin deliveries in the first quarter of 2024. However, this timeline could be subject to change depending on GM’s ability to expedite the sluggish production of its Ultium-based electric vehicles.
General Motors acknowledged that production numbers for Ultium electric vehicles have been quite limited up to the third quarter. The company also confirmed last week that the accelerated production plans for its full-sized electric pickup trucks have been postponed by a year. Further delays affecting these trucks, as well as the Chevrolet Equinox EV originally slated for a spring 2024 release with a starting price of $30,000, have been acknowledged by the automaker.
Frequently Asked Questions (FAQs) about Joint Venture Termination
What was the original aim of the joint venture between Honda and General Motors?
The original aim was to co-develop a range of affordable electric vehicles. This included the use of a new platform intended for global markets, as well as incorporating a next-generation version of GM’s Ultium battery hardware.
When was the first batch of electric vehicles from this collaboration expected to arrive?
The first electric vehicles resulting from this joint venture were expected to start arriving in 2027, and were to include compact crossovers.
Why was the joint venture terminated?
Both Honda and General Motors have stated that the decision to terminate the joint venture was mutual. However, specific reasons for the discontinuation were not disclosed in the Reuters report.
Do Honda and General Motors have other ongoing collaborations?
Yes, Honda and General Motors have other ongoing partnerships. Notably, Honda announced plans for a joint venture with GM and its Cruise autonomous-driving arm, aiming to introduce autonomous ride-sharing services in Japan by early 2026.
Will Honda continue its plans to sell only electrified vehicles by 2040?
Yes, Honda confirmed that there are no changes to its plan to sell only electrified vehicles by 2040. The automaker also intends to launch electric vehicles for the North American market based on its own architecture in 2026.
Is General Motors experiencing delays in its electric vehicle production?
Yes, General Motors confirmed that it has been facing production delays, particularly with its Ultium electric vehicles. The automaker plans to delay the ramp-up of its full-size electric pickup trucks by a year and has also indicated further delays affecting other models.
What are the future electric vehicle plans for Honda and its Acura brand?
Under a separate agreement announced in 2020, both Honda and its luxury Acura brand will launch electric SUVs based on GM’s Ultium hardware. These are scheduled to start deliveries in early 2024.
Will the termination affect Honda and GM’s plans for autonomous ride-sharing in Japan?
No, a Honda spokesperson has confirmed that the termination of this joint venture will not affect their plans for autonomous ride-sharing in Japan, set to begin in early 2026.
More about Joint Venture Termination
- Reuters Report on Honda and GM Joint Venture Termination
- Honda’s Electrification Strategy
- General Motors’ Ultium Battery Technology
- Honda and GM Cruise Autonomous Ride-Sharing
- California’s Decision to Suspend Cruise Operations
- 2020 Announcement of Honda and Acura Electric SUVs