Woolworths Faces Fresh Class Action Over Alleged Underpayments, Shares Slide 
Trello Outage Disrupts Users as Access Issues Hit Atlassian’s Work Management Platform 
HSBC’s $13.6 Billion Take-Private Offer for Hang Seng Bank Gains Board Backing 
Azul Airlines Wins Court Approval for $2 Billion Debt Restructuring and New Capital Raise 
Mizuho Raises Broadcom Price Target to $450 on Surging AI Chip Demand 
FDA Says No Black Box Warning Planned for COVID-19 Vaccines Despite Safety Debate 
Intel’s Testing of China-Linked Chipmaking Tools Raises U.S. National Security Concerns 
Nomura Expands Alternative Assets Strategy With Focus on Private Debt Acquisitions 
Air Force One Delivery Delayed to 2028 as Boeing Faces Rising Costs 
Nvidia Weighs Expanding H200 AI Chip Production as China Demand Surges 
EU Signals Major Shift on 2035 Combustion Engine Ban Amid Auto Industry Pressure 
CMOC to Acquire Equinox Gold’s Brazilian Mines in $1 Billion Deal to Expand Precious Metals Portfolio 
Shell M&A Chief Exits After BP Takeover Proposal Rejected 
Coca-Cola’s Costa Coffee Sale Faces Uncertainty as Talks With TDR Capital Hit Snag 
United Airlines Flight to Tokyo Returns to Dulles After Engine Failure During Takeoff 
Strategy Retains Nasdaq 100 Spot Amid Growing Scrutiny of Bitcoin Treasury Model 
Honda Motor and General Motors have terminated their joint project to develop affordable electric vehicles (EVs) just one year after their initial collaboration. The partnership aimed to challenge Tesla's dominance in the EV market.
Change of Strategy for GM
According to Reuters, GM's decision underscores its shift in focus towards profitability as it grapples with the escalating costs resulting from United Auto Workers strikes.
The company, facing rising expenses of $200 million per week due to these strikes, has decided to slow the launch of several EV models. As a result, GM withdrew its 2023 profit outlook on Tuesday.
Asahi Shimbun reported that despite the dissolution of the joint project, Honda remains committed to bringing affordable EVs to the market. The Japanese company stated that it will continue working towards selling only electrified vehicles by 2040.
After conducting thorough research and analysis, both companies agreed to halt the development of affordable EVs. Honda stated that each company will now focus independently on delivering affordable models to the EV market.
Commitment to Electrified Vehicles
It is important to note that Honda is committed to offering electrified vehicles by 2040, emphasizing its dedication to sustainability and reducing carbon emissions.
The initial agreement between Honda and GM, signed in April of the previous year, aimed to develop a range of lower-cost EVs based on a new joint platform. Utilizing GM's Ultium battery technology, these vehicles were expected to hit the market in 2027.
Honda CEO Toshihiro Mibe, in an interview, explained the reasoning behind the dissolution of the partnership. After a year of evaluation, it was determined that pursuing the project would be difficult from a business perspective.
"We are currently ending the development of an affordable EV, as we have deemed it challenging," Mibe stated.
Safety Concerns and Unaffected Partnerships
Notably, the recent safety incident involving Cruise, GM's subsidiary, in California will not impact Honda's separate partnership with GM and Cruise. California authorities ordered Cruise to remove its driverless cars from state roads due to concerns regarding the technology's safety.
Despite this setback, Honda aims to establish a joint venture with GM and Cruise in the first half of 2024 and plans to launch a driverless ride service in Japan by early 2026.
Photo: Honda Newsroom
