Honda and GM scrap affordable electric car plan

Carmakers had agreed to work together in effort to beat Tesla in sales

Honda said there was no change in its plan to sell only electrified vehicles by 2040.

Honda Motor and General Motors are scrapping a plan to jointly develop affordable electric vehicles, the companies said, just a year after they agreed to work together in a $5bn (€4.7bn) effort to try to beat Tesla in sales.

The decision underscores GM's strategic shift to slow the launch of several electric car models to focus on profitability. The US car maker withdrew its previous 2023 profit outlook.