The Honda-GM cheaper EV program has been canceled. This was confirmed by Honda Chief Executive Officer Toshihiro Mibe. He confirmed that the program cancellation was a mutual decision made by the two giant automakers.
The question is, did they discontinue the EV initiative because of the ongoing UAW strikes? Here's what Honda and General Motors said about their cheaper EV program cancellation.
Honda-GM Cheaper EV Program Officially Canceled
According to The Verge's latest report, General Motors and Honda announced in April 2022 that they are collaborating to release new affordable EVs on GM's flexible EV platform with its Ultium battery packs.
They promised that these new EVs will be priced below the upcoming 2024 Chevy Equinox EV. This means that the cheap EV brand of the Honda-GM program was supposed to start at $30,000.
The previously planned series of affordable EVs was a big deal for consumers since new electric cars are estimated to be over $53,600 in the United States.
Unfortunately, the cheaper EVs will no longer arrive since the Honda-GM program has been discontinued.
"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," said Mibe.
GM's spokesperson Sanaz Marbley also confirmed that General Motors agreed with Honda to cancel the EV initiative. Marbley announced that they were already working on an affordable EV program for global markets.
She said that the cheap EV units were supposed to debut by 2027.
"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," explained Marbley.
Are UAW Strikes To Blame the Cancellation?
The latest announcement regarding the canceled Honda-GM EV program was made amid the UAW strikes that are attacking giant automakers in the United States.
Although Mibe didn't specifically mention the protests made by the United Auto Workers union, he confirmed that one of the major issues they are facing is the costs that these strikes create.
Aside from this, Fortune reported that Honda is also facing cruising distance challenges. Meanwhile, General Motors said that it agreed to cancel the effort because it is trying to slow the launch of several EV models.
GM explained that it is adjusting its business so that it can focus on profitability as it grapples with the rising costs that UAW strikes create.
