"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," Honda and GM said in a joint statement.
"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 Honda CEO Toshihiro Mibe in an interview with Bloomberg. "GM and Honda will search for a solution separately. This project itself has been canceled," Mibe said.
The now-canceled platform was supposed to use GM's Ultium batteries. GM debuted Ultium in 2020 as its third-generation lithium-ion cell, developed together with LG Chem.
Ultium cells were supposedly ready for mass production, but GM and LG Chem are struggling to make that a reality. In July, GM had to idle BrightDrop's production line in Canada due to a shortage of battery cells, and Kelly Blue Book's sales data for the first three quarters of 2023 show that just 6,920 Ultium-based EVs (which include the Chevrolet Blazer and Silverado EV, as well as the Hummer, Lyriq, and BrightDrop van) were delivered to customers.
GM has blamed the Ultium bottleneck on an unspecified "automation equipment supplier."
Honda and GM are still working together on other joint projects, though. The Honda Prologue and Acura ZDX are a pair of electric crossovers that use the same platform as the Cadillac Lyriq and Chevrolet Blazer, and both are still happening. They'll even feature Apple CarPlay and Android Auto, which GM has controversially chosen to eliminate from its cars from model year 2024 onward.
And Honda even announced another collaboration with GM earlier today—in 2026, it wants to start operating a robotaxi service in Japan using the Cruise Origin, an autonomous electric vehicle developed by the GM-backed AV company. Honda may regret the timing of this latest development after news that California has suspended Cruise's permission to operate AVs after a horrific incident where a pedestrian, having already been hit by another car, was run over and dragged by a Cruise AV in San Francisco.