In a joint statement released on Thursday, Honda and General Motors (GM) announced the cancellation of their planned collaboration to develop a range of affordable electric vehicles (EVs). The project, which was unveiled in April 2022, aimed to create a new platform for lower-cost EVs in North America, South America, and China, with the expectation of launching cars by 2027.

The decision to discontinue the program comes after extensive studies and analysis conducted by both companies. Honda CEO Toshihiro Mibe explained in an interview with Bloomberg that, after a year of study, the companies concluded that developing an affordable EV would be challenging from a business perspective. Mibe stated, "This project itself has been canceled," adding that GM and Honda will now pursue separate solutions while remaining committed to affordability in the EV market.

The joint project was set to utilize GM's Ultium batteries, which were introduced in 2020 as GM's third-generation lithium-ion cells in collaboration with LG Chem. GM CEO Mary Barra had previously expressed confidence that the Ultium cells would break the $100/kWh barrier early in their production cycle. However, the mass production of Ultium cells has encountered obstacles, as evidenced by GM's recent idling of BrightDrop's production line in Canada due to a shortage of battery cells. The delivery data for the first three quarters of 2023 showed that only 6,920 Ultium-based EVs were sold to customers, while Chevrolet sold 49,494 Bolts, which utilize an older and costlier battery chemistry.

Despite the cancellation of the joint EV platform, Honda and GM will continue their collaboration on other projects. Two electric crossovers, the Honda Prologue and Acura ZDX, are still in progress and will share the same platform as the Cadillac Lyriq and Chevrolet Blazer. Notably, these models will feature Apple CarPlay and Android Auto, distinguishing them from GM's decision to remove these features from its cars starting in 2024.

Additionally, Honda and GM, along with BMW, Hyundai, Kia, Mercedes-Benz, and Stellantis, are partners in a new North American fast-charging network. The alliance aims to deploy 30,000 fast chargers across the United States and Canada, with the rollout scheduled to begin in 2024.

In an unexpected turn of events, Honda also announced a new collaboration with GM earlier on the same day. The Japanese automaker plans to launch a robotaxi service in Japan in 2026, utilizing the Cruise Origin, an autonomous electric vehicle developed by GM-backed AV company Cruise. However, this announcement comes amidst news that California has suspended Cruise's permission to operate autonomous vehicles following a tragic incident involving a Cruise AV in San Francisco.

Despite the setback in their joint EV project, Honda and GM will continue to explore other avenues of collaboration, while addressing the challenges associated with affordable electric vehicles.