General Motors and Honda have dissolved their joint affordable EV development partnership after spending $5 billion without producing a single production vehicle, citing irreconcilable differences in design philosophy and timeline priorities.

What Went Wrong

Insiders report disagreements over battery technology choices, software architecture, and manufacturing locations created delays that pushed the first vehicle launch from 2025 to 2028.

Impact

Both companies will now pursue separate affordable EV strategies. Honda is pivoting to a partnership with Sony while GM is doubling down on its Ultium platform.