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1Fix the driver behind crashes, sound loss and screen glitches2Repair Windows errors before they cause bigger problems3Scan for outdated or missing drivers - takes under a minuteGM and Honda ended their planned affordable-EV program in October 2023 because, after studying it for about a year, Honda CEO Toshihiro Mibe said it would be difficult to make the project work as a business. The companies’ joint statement did not spell out a detailed rationale. At the time, reports pointed to high interest rates, battery costs, softer EV demand and GM’s stronger focus on profitability as relevant commercial pressures—not as a complete, officially confirmed list of reasons.
What GM and Honda planned—and what they canceled
On April 5, 2022, GM and Honda announced that they would co-develop a global series of affordable electric vehicles using a new global architecture and GM’s next-generation Ultium battery technology. The companies planned global production of millions of vehicles beginning in 2027, with compact crossovers as the initial focus. They said the global compact-crossover segment represented more than 13 million vehicles annually; that was the segment’s total vehicle volume, not EV sales. GM’s 2022 announcement described the intended scale and scope.
The plan was for a series of vehicles, not one announced model with a confirmed price, specification or release date. In October 2023, the companies mutually discontinued the development program before those vehicles reached production. The planned 2027 start therefore did not happen.
Why did the companies end the program?
The stated reason: difficult business economics
GM spokesperson Darryll Harrison said the companies had reached a mutual decision after “extensive studies and analysis.” Honda CEO Toshihiro Mibe separately told Reuters, in reporting carried by Investing.com, that after studying the project for a year they had decided it “would be difficult as a business.” That is the clearest public explanation of the decision, but neither statement supplies the underlying financial analysis or a detailed breakdown of each company’s reasoning. Reuters reporting carried by Investing.com includes Mibe’s attributed comment; TechCrunch’s October 2023 report carried the companies’ cancellation statement.
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The commercial pressures reported at the time
Contemporaneous coverage placed the decision amid high interest rates, battery costs and softening demand for EVs. Reuters also described GM as shifting its EV effort toward profitability and away from some entry-level segments. Those factors help explain the business environment in which the program was reconsidered; the public evidence does not establish that both companies formally cited each one as a reason for ending this specific partnership.
The tension was central to the original ambition: making EVs more affordable for a broad customer base while developing vehicles that could also make commercial sense. In 2022, GM CEO Mary Barra said the companies would share technology, design and manufacturing strategies to deliver affordable EVs globally. Honda’s Mibe framed lower vehicle costs as necessary to make EV ownership possible for more customers. The 2023 decision indicates that the planned approach did not meet the companies’ business case, but the available statements do not reveal whether the decisive issue was projected vehicle pricing, development costs, demand forecasts or some combination.
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What the cancellation did—and did not—mean in 2023
The end of this program did not mean every GM–Honda activity stopped. Contemporary reporting said other work, including the Honda Prologue and a separate relationship involving Cruise, continued at that time. This describes the situation reported in 2023, not a claim about the status of those activities today.
It also did not mean that the partners had canceled EVs already on sale: the affordable-EV series had not reached production. There are consequently no actual retail prices, range figures or road-performance results to compare for the canceled vehicles.
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Honda’s 2026 EV cancellations are a separate development
On March 12, 2026, Honda announced that it would cancel development and launch of three different vehicles—the Honda 0 SUV, Honda 0 Saloon and Acura RSX—which had been planned for North American production. They were not the compact crossovers or other vehicles from the 2022 GM–Honda program.
Honda said the later decision reflected slower expansion of the U.S. EV market, easing fossil-fuel regulations and revisions to incentives, weaker competitiveness in China amid software-oriented competition, and declining profitability in its auto business. The company said launching the three vehicles under those conditions could lead to further long-term losses. It planned to strengthen its hybrid lineup, reassess how it allocated resources, and keep future EV introductions flexible as it monitored market trends and profitability. Honda’s March 2026 announcement gives its explanation.
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Honda also estimated preliminary maximum losses of up to 2.5 trillion yen associated with its broader automobile-electrification strategy reassessment. That figure is not a cost assigned solely to the canceled GM–Honda program. Honda’s 2026 announcement is useful context for its later strategy, but it does not establish why the joint program ended in 2023.
What consumers can take from the decision
The cancellation is a reminder that an announced affordable-EV program is not the same as an available vehicle or a confirmed price. For a household weighing an EV against a hybrid or gasoline car, the practical comparison should be based on vehicles actually offered in its region: purchase price and financing, expected energy costs, charging access, incentives and the length of time the owner expects to keep the car. GM and Honda never launched the vehicles in this program, so their proposed affordability cannot be evaluated against real transaction prices or ownership costs.
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