GM's Plan To Make Sub-$30K EVs With Honda Is Not Happening Anymore
Portfolio Pulse from Benzinga Neuro
Honda Motor Co (NYSE:HMC) and General Motors Co (NYSE:GM) have cancelled their plans to develop affordable electric vehicles (EVs). The decision was due to business difficulties, according to Honda's CEO. In addition, GM has withdrawn its EV production targets, including the 100,000 EV target for the second half of this year and the cumulative 400,000 target from 2022 to the first half of 2024. GM's operating income fell 11.1% year-over-year to $3.01 billion in the third quarter.
October 25, 2023 | 10:46 am
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NEGATIVE IMPACT
GM has withdrawn its EV production targets and reported an 11.1% year-over-year fall in operating income in Q3. The company also plans to moderate the acceleration of EV production in North America.
GM's withdrawal of its EV production targets and the reported decrease in operating income could negatively impact investor confidence and its stock price.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 100
NEGATIVE IMPACT
Honda's plans to develop affordable EVs with GM have been cancelled, which could impact its future growth in the EV market.
The cancellation of the EV development project with GM could limit Honda's ability to compete in the affordable EV market, potentially impacting its stock price negatively.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100