GM and Honda abandon a $5 billion initiative to create more affordable electric vehicles
Just one year after deciding to collaborate on a $5 billion project to try to surpass Tesla in sales, Honda Motor and General Motors (GM) announced on Wednesday that they were suspending their plan to jointly produce inexpensive electric vehicles (EVs).
The move highlights GM’s strategic adjustment to manage the growing cost of United Auto Workers (UAW) strikes, which increased to $200 million per week this month, by delaying the introduction of numerous EV models and concentrating on profitability.
Honda released a statement saying, «After conducting some research and analysis, both parties decided to end development.» «Each company will continue to work to offer affordable models to the EV market.»
The Japanese business declared that its goal to offer solely electric vehicles by 2040 has not changed.
