By River Davis

TOKYO-General Motors and Honda Motor have decided that their plan to develop a line of lower-priced electric vehicles is not viable, a year and a half after the companies announced the joint effort, a Honda spokesman said Wednesday.

GM and Honda said in April 2022 that they would develop a series of lower-cost EVs expected to be priced below $30,000 in the U.S. The companies expected to produce millions of the cars fitted with GM's Ultium battery from 2027 onward.

Honda said Wednesday that plans for the affordable EVs have been scrapped for the time being, though the companies are continuing to work on a number of projects together, including a recently announced initiative to bring a driverless ride service to Tokyo.

The announcement comes as a growing number of automakers flag concerns about the profitability of EVs and the viability of the market. On Tuesday, GM abandoned a target to build 400,000 EVs by mid-2024, citing slowing demand for the vehicles.

Write to River Davis at river.davis@wsj.com

(END) Dow Jones Newswires

October 25, 2023 10:33 ET (14:33 GMT)

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