Honda will partner with General Motors (GM) in accelerating the advancement of its electric vehicles. Honda can also reconfigure the tax credit, thereby making its electric vehicles less expensive.
Honda’s latest electric car is planned to be built at GM’s plant in North America. By using GM’s factory and Utium battery technology, Honda was able to save millions of dollars that would otherwise have been spent developing its own hardware.
The Japanese manufacturer plans to develop the Honda Prologue and Acura ZDX. The two vehicles will be key in helping Honda catch up in its electric car launches from other companies.
The Prologue will be paired with the Chevrolet Blazer, while the ZDX will be paired with the latest Cadillac Lyriq. Both will be built at GM plants in North America.
Previously, this tax credit limited production to 200,000 units. Tesla has been reaching that figure for a long time. However, the relatively slower Honda was able to catch up quickly thanks to partnering with GM.
Changes to the electric vehicle tax credit system have indeed angered many foreign car manufacturers. The new rules require vehicles to be built in North America and feature homemade battery technology to qualify for credit, effectively making some electric vehicles expensive.
So this makes Honda competitors like Kia and Hyundai potentially sell more expensive vehicles. Honda will take advantage of these advantages by selling cars at relatively cheaper prices but still competitive.
