Honda and Basic Motors are scrapping a plan to collaborate on reasonably priced EVs, Reuters reported Wednesday.

Introduced in 2022, the plan would have seen the 2 automakers co-develop a variety of reasonably priced EVs based mostly on a brand new platform supposed for international markets, and utilizing a next-generation model of GM’s Ultium battery {hardware}. The primary EVs ensuing from this effort, together with compact crossovers, have been to begin arriving from 2027.

2024 Chevrolet Equinox EV

The choice to discontinue the undertaking was mutual, the 2 automakers stated in a joint effort, including that every automaker “stays dedicated to affordability within the EV market.” Honda additionally confirmed to Reuters that there are not any modifications to its plan to promote solely electrified automobiles by 2040. The automaker beforehand stated it might launch EVs for North America based mostly by itself structure in 2026.

This is not the tip of collaboration between Honda and GM. Honda simply final week introduced plans for a three way partnership with GM and its Cruise autonomous-driving arm within the first half of 2024, with the goal of starting autonomous ride-sharing in Japan in early 2026. A Honda spokesperson informed Reuters that this partnership will not be affected by California’s determination to droop operation of Cruise automobiles on its roads.

2024 Honda Prologue

Below an alliance introduced in 2020, Honda and its upscale Acura model will every launch an electrical SUV based mostly on GM Ultium {hardware}, and manufactured by the U.S. automaker. Each the 2024 Honda Prologue and 2024 Acura ZDX are scheduled to start out deliveries in early 2024, though that timetable will seemingly be depending on GM’s capability to speed up the gradual manufacturing ramp-up of its Ultium EVs.

GM managed to supply solely a handful of Ultium EVs by the third quarter, and confirmed final week that it deliberate to delay the ramp-up of its full-size electrical pickup vans by a yr. The automaker subsequently confirmed additional delays of some months affecting each the vans and the Chevrolet Equinox EV, which was initially due in spring 2024 with a $30,000 base value.