Honda has ended a deal with GM to create cheap EVs, saying the endeavor proved too difficult and expensive to be tenable.
The two companies had announced a joint venture in April 2022 to develop an affordable EV platform. Unfortunately, the challenges involved in delivering on that promise have proved too daunting.
“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,” Honda CEO Toshihiro Mibe told Bloomberg, via Ars Technica. “GM and Honda will search for a solution separately. This project itself has been canceled,” Mibe added.
It appears the companies are continuing to work together on other projects.