GM and Toyota have suspended their $30000 electric vehicle development partnership

On October 26th, it was announced that due to lower than expected market demand and constantly changing market conditions, General Motors and Honda Motors have confirmed that they will abandon their plan to jointly develop low-cost electric vehicles.A year and a half ago, the two companies announced a collaborative plan to jointly develop electric vehicles priced below $30000

On October 26th, it was announced that due to lower than expected market demand and constantly changing market conditions, General Motors and Honda Motors have confirmed that they will abandon their plan to jointly develop low-cost electric vehicles.

A year and a half ago, the two companies announced a collaborative plan to jointly develop electric vehicles priced below $30000. It is expected to use General Motors' next-generation Ultium battery technology to produce tens of millions of electric vehicles priced below $30000 for the global market starting from 2027, including popular compact crossover vehicles.

Since the two automakers first announced their cooperation plan, the prospects for developing low-cost electric vehicles through cooperation have been worrying due to rising costs, lack of infrastructure, and lower than expected consumer demand.

General Motors spokesperson Darryl Harrison said in an email, "After extensive research and analysis, we have collectively decided to discontinue this plan." "Companies will continue to strive to make the electric vehicle market more affordable

Harrison said that canceling this project is "unrelated to our plan to launch a new generation Bolt electric vehicle". But during a earnings conference call on Tuesday, General Motors CEO Mary Barra discussed with investors to cancel her $5 billion entry-level electric vehicle investment commitment, stating that Bolt is a better option.

Our previous investment plan included several newly designed entry-level models and a commitment to invest $5 billion in the next few years, "Bara said. However, relying on the best features of today's Bolt electric vehicle and Ultium platform... we will provide a better driving, charging, and ownership experience, and we know that customers like this car

Even without any subsidies, the starting price of Chevrolet Bolt electric vehicles is currently below $30000.

Harrison stated that other cooperative relationships between the two companies are still ongoing, including General Motors' agreement to produce the 2024 Prologue EV pure electric SUV for Honda. The two companies have also established a cooperative relationship in hydrogen fuel cells and autonomous vehicle.

After General Motors reduced its recent electric vehicle targets, announced a delay in the production of at least three electric vehicles, and postponed the construction of a second all electric truck factory in Michigan until the end of 2025, the two companies confirmed that they will end their plans to develop low-cost electric vehicles.

General Motors Chief Financial Officer Paul Jacobson said at a media briefing on the company's third quarter financial results, "We are truly focused on ensuring progress towards demand targets." "We are balancing production and demand

Honda CEO Minhong Mitsubu stated in an interview on Tuesday that the company believes that the low-cost electric vehicle project "will be a difficult business". (Chen Chen)