Honda to discontinue Acura EV assembled by GM in US

Honda to discontinue Acura EV assembled by GM in US

The auto industry expects more headwinds for the EV market following Donald Trump’s removal of key support for the sector.

Acura ZDX
GM has produced the ZDX for Honda’s premium Acura brand under a partnership the automakers established in 2020. (Acura pic)
DETROIT:
Japanese automaker Honda is ceasing production of its Acura ZDX electric crossovers assembled by General Motors, the latest automaker to curtail electric-vehicle activity in the US.

The ZDX electric model was assembled at GM’s Spring Hill assembly plant in Tennessee.

“To better align our product portfolio with the needs of our customers and market conditions, as well as our long-term strategic goals, we can confirm the Acura ZDX has ended production,” Honda said in a statement.

CNBC first reported the decision.

GM has been building the ZDX for Honda’s premium Acura brand under a partnership the automakers struck in 2020.

GM also builds the Honda-brand EV Prologue at a factory in Mexico. That car and the Acura are mechanically similar to a few of GM’s own EVs, including the Cadillac Lyriq SUV.

Carmakers in the US have been delaying or cancelling new electric models and delaying plans for battery factories and other EV-related investments due to weaker-than-expected demand.

Auto executives have said they expect further trouble for the EV market following US President Donald Trump’s removal of key support for the industry, including the pending Sept 30 phase-out of a US$7,500 federal tax credit available to some EV buyers.

The Acura ZDX, a midsize crossover, was a relatively light seller. Acura sold 10,335 of the EVs through the first half of this year, accounting for about 15% of the brand’s overall US sales volume, according to research firm Motor Intelligence.

US electric-car sales have surged recently as buyers rush to beat next week’s tax-credit deadline, which was included in the massive tax bill Trump signed in July. EVs accounted for 11.2% of total US vehicle sales in August, the second-highest level on record, according to research firm JD Power.

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