Honda and GM Cancel Plans for Affordable EV Partnership

General Motors (GM) and Honda have decided to abandon their plan to co-develop a lineup of affordable electric vehicles (EVs). The initial plan, announced in April 2022, aimed to produce millions of affordable EVs by 2027 using GM's flexible EV platform and Ultium-branded battery packs. However, after a year of study, both companies concluded that the project would be challenging from a business perspective. Despite this setback, GM and Honda will continue their partnership in other areas, such as the development of the Honda Prologue EV and the Cruise Origin autonomous shuttle. The decision to scrap the affordable EV plan raises concerns about the future of the EV market, particularly in light of Tesla's price cuts and softening demand.