In a surprising turn of events, Honda and General Motors (GM) have announced their decision to cancel their joint endeavor to develop a line of affordable electric vehicles (EVs). The collaboration aimed to introduce compact EV crossovers that would be priced below $30,000 by 2027.

The project's cancellation was confirmed by Honda's CEO, Toshihiro Mibe, in an interview with Bloomberg. Mibe cited the challenges the venture presented as a business, leading to the joint decision to terminate the development of the affordable EV initiative. Both Honda and GM will now explore individual strategies to collaborate with the objective of reducing EV costs.

This move comes amidst industry-wide slowdowns in EV production, exacerbated by the ongoing United Auto Workers strike primarily affecting GM. Just days ago, GM declared a delay in the production of EVs utilizing its Ultium battery pack, including models such as the Chevrolet Equinox, Silverado, and GMC Sierra EVs. These vehicles were originally intended to compete with industry-leader Tesla.

Although the cancellation of the affordable EV program is a setback, it is important to note that Honda and GM have various other joint projects that remain unaffected. Just recently, the two companies revealed their plans to work in partnership with Cruise, a self-driving car service, to launch a driverless ride-hailing platform in Japan by 2026.

The decision to halt the co-creation of affordable EVs signifies a new direction for both Honda and GM as they individually venture toward reducing the cost of electric vehicles. This strategic shift reflects the current challenges faced by the auto industry in transitioning to electric mobility. The fate of affordable EVs in the market now lies in the hands of these renowned automakers as they adapt and forge their own paths in the evolving landscape of sustainable transportation.