Two MAJOR Brands Completely Abandon EV Initiatives

( – Car manufacturers GM and Honda have discarded plans to collaborate on a range of more affordable electric vehicles intended to offer a rival to electric cars made by Tesla. The pair joined forces in April 2022 with the aim of putting a high-quality, lower-cost vehicle on the market by 2027, but in a statement made by Honda on Wednesday October 25, the $5 billion development will no longer go ahead.

In its statement, Honda CEO Toshiro Mibe confirmed that Honda still intends to sell only electric vehicles by the year 2040 and said that both his company and GM will pursue other means of offering electric vehicles. He explained that the decision had been jointly made after a review of the logistical issues and financial costs raised concerns around the profitability of the scheme. GM has faced unexpected financial hardship in the form of the United Auto Workers strike. The car manufacturer has claimed that the striking action by its workers is costing the firm $200 million each week, and said that the previously forecasted $14 billion profit for this year may not materialize.

This latest setback in the pursuit of affordable electric vehicles comes in the wake of Ford’s announcement that it would shortly lay off 700 workers based at its Detroit plant. The Detroit factory makes Ford’s electric pick-up truck, the F150 Lightning. Ford has also delayed its target of making 600,000 electric vehicles each year to late 2024 and has halted plans to build a new battery plant in Michigan which would cost $3.5 billion.

Previously, President Biden promised that half of all car sales would be of electric cars by 2030, despite the many difficulties the industry faces in creating enough affordable vehicles that meet consumer needs. This determination to replace traditional cars with electric vehicles may put some voters off the Democrat President in the next election, however, with some positing that fear of losing their livelihood is turning automotive workers away from Biden. In a recent survey of United Auto Workers union members, Trump narrowly came out on top, leading Biden 46 to 43.

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