Disappointing news for fans of affordable electric vehicles: The anticipated collaboration between Honda and General Motors to develop a line of budget-friendly EVs has been called off. This collaborative venture, initially announced in April 2022, had the goal of creating a fresh platform for use in cost-effective electric vehicles destined for North America, South America, and China, with these vehicles expected to hit the market in 2027. However, on Thursday, both companies disclosed that this initiative has been abandoned.
“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,” stated Honda and GM in a joint press release. Toshihiro Mibe, CEO of Honda, in an interview, claimed, “After studying this for a year, we decided that this would be difficult as a business, so at the moment, we are ending development of an affordable EV. Further, he added, “GM and Honda will search for a solution separately. This project itself has been canceled.”
Challenges and Delays in Ultium Battery Production
The platform, which has now been canceled, was initially slated to utilize GM’s Ultium batteries. GM unveiled the Ultium battery technology in 2020 as their third-generation lithium-ion cell, a collaborative effort with LG Chem. GM CEO Mary Barra had stated that Ultium cells would likely break the critical $100 per kilowatt-hour (kWh) cost barrier “early in the platform’s life.” In 2022, the first wave of Ultium-based electric vehicles (EVs) entered production, including the GMC Hummer EV, Cadillac Lyriq, and BrightDrop Zevo 600.
The Ultium cells were believed to be ready for mass production, but GM and LG Chem have encountered significant challenges in making this a reality. In July, GM had to temporarily halt production at the BrightDrop facility in Canada due to a shortage of Ultium battery cells. Sales data from Kelly Blue Book for the first three quarters of 2023 indicate that only 6,920 Ultium-based EVs, which encompass models such as the Chevrolet Blazer, Silverado EV, Hummer, Lyriq, and BrightDrop van, were delivered to customers during this period.
In stark contrast, Chevrolet managed to sell 49,494 Bolt EVs, which rely on older and more expensive battery technology, in the same nine-month period. GM had previously announced the cessation of Bolt production at its Orion Township, Michigan plant in order to retool the facility for electric truck manufacturing, scheduled to commence in 2024. However, recent developments have revealed a delay in the start of electric truck production, now projected for late 2025. It’s important to note that this delay is not indicative of a reprieve for the Bolt.
GM attributes the bottleneck in Ultium production to an unspecified issue with their “automation equipment supplier.”
Collaborative Initiatives with GM: Innovative Pursuits of Honda
Honda and GM continue their collaborative efforts on various projects, demonstrating a commitment to innovation and future mobility solutions. One noteworthy endeavor is the development of two electric crossovers: the Honda Prologue and Acura ZDX, which share a platform with the Cadillac Lyriq and Chevrolet Blazer. These projects are progressing as planned and will offer consumers integration with popular mobile platforms like Apple CarPlay and Android Auto. It’s worth noting that GM has chosen to discontinue these features in their vehicles from the 2024 model year, a decision met with mixed reactions.
Furthermore, GM and Honda are part of a consortium that includes BMW, Hyundai, Kia, Mercedes-Benz, and Stellantis, aiming to establish a robust fast-charging network in North America. This coalition has ambitious goals to deploy a total of 30,000 fast chargers in the United States and Canada, with the rollout set to commence in 2024. The initiative underscores the joint commitment to advancing electric vehicle infrastructure and accessibility.
Honda announced a new collaboration with GM, set to commence in 2026. The plan is to launch a robotaxi service in Japan, utilizing the Cruise Origin, an autonomous electric vehicle developed by Cruise, a company with GM’s backing. However, this announcement coincides with news that California has temporarily suspended Cruise’s permission to operate autonomous vehicles following a tragic incident in San Francisco, where a pedestrian was involved in a collision with a Cruise AV after already being struck by another vehicle and subsequently dragged. This raises questions about the timing and implications of Honda’s new robotaxi venture.
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