Is Honda’s Decision to End Deal with GM a Setback for Cheap Electric Vehicles?

Pros:
1. Greater focus: Honda can now concentrate on its own electric vehicle platforms and technologies, potentially leading to more innovative and efficient solutions.
2. Independent strategies: The termination allows both companies to pursue their individual approaches, enabling diverse offerings in the electric vehicle market.
3. Competitive advantage: With separate development paths, Honda and GM can strive to differentiate themselves and potentially gain an edge in the market.
4. Flexibility in partnerships: Ending this deal opens up opportunities for Honda to explore other partnerships or collaborations that align better with its long-term goals.
5. Learning from failure: This setback can serve as a learning experience for Honda, helping them reassess their strategies and refine their approach to electric vehicles.

Cons:
1. Missed opportunities: The collaboration’s cancellation means the potential loss of shared expertise and resources, which could have accelerated the development of affordable electric vehicles.
2. Delay in progress: Honda might need more time to develop its own platform, slowing down their entry into the electric vehicle market.
3. Competitive challenges: With Honda and GM going their separate ways, they may face increased competition from each other, potentially affecting their market share in the electric vehicle segment.
4. Limited resources: Developing electric vehicle technologies requires substantial investments. Honda might face challenges in allocating sufficient resources for research and development without the partnership.
5. Uncertainty: The cancellation introduces uncertainty about Honda’s future electric vehicle plans. This can raise questions among consumers and investors, potentially affecting their perception of the brand’s commitment to electric vehicles.

context: https://tech.slashdot.org/story/23/10/25/1630201/honda-says-making-cheap-electric-vehicles-is-too-hard-ends-deal-with-gm

Honda Motor and General Motors have officially cancelled their joint collaboration to develop an affordable electric vehicle (EV) platform. The announcement comes after the collaboration was initially publicized in April 2022 with the goal of producing innovative EVs.