Amid criticism from California State Governor Gavin Newsom aimed at General Motors Co. GM and CEO Mary Barra for opposing EV policies, Honda Motor Co. Ltd. HMC has pulled the plug on the Acura ZDX EV developed with GM.
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Honda Cites Low EV Demand
Production of the 2026 ZDX Crossover EV — based on GM’s Ultium platform, which also forms the basis of the Cadillac Lyriq EV and the Chevrolet Blazer EV — was slated to begin at GM’s plant in Spring Hill, Tennessee, before Honda pulled the plug, CNBC reported on Wednesday.
A spokesperson for the Japanese automaker confirmed the plans, citing low demand for EVs in the U.S. The spokesperson also outlined Honda’s EV commitment, with the all-electric Acura RSX scheduled to enter production in Ohio next year. Honda has sold over 19,000 units of the ZDX since it was released last year, with 11,000 units being sold through August 2025, the report said.
“Honda’s decision isn’t a reflection on the capabilities of the Spring Hill workforce or GM’s commitment to Spring Hill,” an internal memo sent to workers at the Spring Hill facility cited in the report said.
Gavin Newsom’s Criticism
The news comes days after Newsom criticized GM for opposing California’s EV push. “GM sold us out. Mary Barra sold us out,” Newsom said and confirmed that California wouldn’t be offering bespoke incentives to EV buyers, which it proposed via “backfill,” after the September 30 deadline for the $7,500 Federal EV credit.
GM Rollback Vindicated As EV Demand Slows?
GM had earlier opposed the EV mandate in California, which aimed at phasing out ICE-powered vehicles by 2035 and had been adopted by 11 other states, citing slow demand in the market for EVs.
“Emissions standards that are not aligned with market realities pose a serious threat to our business by undermining consumer choice and vehicle affordability,” the company said in an internal email to employees.
What’s interesting to note is that data released by market research firm Rho Motion recently illustrated that the EV sector’s YTD sales grew 6% in North America, but there’s an expectation that there will be production cuts. During the same period, however, European sales grew 31%.
GM’s Dual Mobility Strategy
GM still hasn’t given up on EVs, with the company signing a 2-year agreement with Chinese battery giant CATL to source LFP batteries for the company’s $30,000 Chevrolet Bolt EV until 2027.
The agreement is a stopgap deal until GM’s partner, LG Energy Solutions, can ramp up battery domestic production. GM also signed a deal with EVgo Inc. EVGO to establish 200 fast charging stations in the U.S.
Meanwhile, the Michigan-based automaker has also invested over $888 million in its V-8 production facility in Buffalo, New York. The V-8 engines produced at the facility will power the company’s SUVs and Full-Size Trucks.
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