Japanese automaker Honda and American automotive giant General Motors have jointly announced the discontinuation of their partnership focused on producing affordable electric vehicles, starting in 2027, as reported by AFP. The decision follows extensive research and analysis, as mentioned in their joint statement, although no specific reason was provided. According to industry reports, the slowdown in electric vehicle expansion plans can be attributed to declining demand, particularly in China. GM also indicated earlier this week that they are scaling back electric vehicle production in North America to maintain pricing, adapt to reduced short-term demand growth, and implement engineering efficiency improvements.

The prolonged strike by American factory workers has had an impact on GM and other U.S. automakers like Ford and Stellantis (parent company of Chrysler).

Japanese automakers have encountered challenges in maintaining their market share in crucial markets in recent years, partially due to a delayed introduction of electric vehicles, given their historical emphasis on hybrid vehicles.