May 21, 2024

AFP reported that the Japanese automaker Honda and the United States giant General Motors announced their decision to discontinue their partnership aimed at manufacturing affordable electric vehicles starting in 2027.

In a joint statement, it was stated that the decision came after extensive research and analysis. No specific reason was given. According to industry reports, the cooling of demand in China is believed to be responsible for the slowdown.

 

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GM announced earlier this week that they would moderate EV production to protect prices, adapt to reduced near-term growth in demand, and implement engineering efficiency improvements.

The strike of US factory workers also affected GM, Ford, and Stellanis.

In recent years, Japanese automakers faced challenges with market shares in key markets, in part due to a delay in the rollout of EVs.

The goal of the 2022 partnership was to create electric cars that were priced below GM’s $30,000 Chevrolet Equinox. Honda is still committed to reaching 100 percent EVs by 2040.

It is worth mentioning that Honda continues to collaborate with GM in other projects. One of these includes plans to launch driverless cabs in Tokyo by the year 2026.

 

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Explore Premium Catch All Auto News Live Mint Updates. Download the Mint News App, Get Daily Market Updates Live, and stream Business NewsYou can find out more about us by clicking here. Updated: Friday, 26 October 2023 at 9:48 am (IST).

TopicsHonda Motors General Motors Corp

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The Ethics Committee has told TMC MP Mahua Moitra that it will not entertain any request to extend the date of appearance past Nov 2.

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Mahua Moitra, TMC MP, has been asked to appear in front of the Lok Sabha Ethics Committee on November 2 regarding the cash-for-question case.

Mahua Moitra, TMC MP, was told by the LS Ethics Committee that it would not accept any request to extend her date of appearance past November 2

Two more strikes were then carried out: on October 23, at Stellantis Sterling Heights, Michigan plant, which makes the best-selling Ram 1500 pick-up truck, and on October 24, at GM Arlington, Texas facility, which assembles the Chevy Tahoe GMC Yukon, and Cadillac Escalade.

Fain said that Ford would be facing a larger strike if they didn’t reach an agreement.

Ford knew what would happen on Wednesday if there was no deal. Fain stated in a video on X that “that was checkmate.”

According to Deutsche Bank analyst Emmanuel Rosner, the strike cost GM Ford and Stellantis approximately $2.1 billion before interest and tax in lost earnings as of October 23. GM pulled its earnings forecast this week after the strike muddied their outlook.

The S&P 500 has been underperforming GM and Ford shares since July. Stellantis shares are up 33% in the US so far this year.

What Bloomberg Intelligence says:

Ford’s tentative agreement with the UAW could increase its costs in the first year by over $900 million, based on an 11% rise in the year before. This would put additional pressure on efforts to improve the company’s mediocre profit.

 

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