Honda Motor (NYSE:HMC) is pulling the plug on the Acura ZDX electric crossover, citing sluggish demand for EVs and to “better align” the company’s product portfolio with market conditions.
The vehicle was manufactured through a partnership between Honda (NYSE:HMC) and General Motors (NYSE:GM) at GM’s Spring Hill, Tennessee Assembly plant. The company was set to begin production of the 2026 Acura ZDX before Honda (NYSE:HMC) ended production.
According to an email from a Honda spokesperson viewed by media sources, Honda (HMC) said that while it is ending production of the ZDX, the vehicle will “provide a foundation we will build on next year with the arrival of the all-electric Acura RSX.” The RSX EV will be produced at Honda’s EV Hub in Maryville, Ohio beginning in the second half of next year.
The Honda-designed, GM-assembled ZDX emerged from the 2021 collaboration between GM and Honda. The two intended to co-develop a lineup of affordable electric vehicles on GM’s Ultium EV platform. Besides the ZDX, GM and Honda (HMC) also collaborated on the production of the Honda Prologue.
Unfortunately, the relationship began to fray in less than two years when the two parted ways over the joint development of hydrogen fuel cells, and later their affordable EV project.
While Honda’s statement regarding the decision to end joint development of affordable EVs was gracious, Honda’s CEO later admitted that the joint venture “would be difficult as a business,” specifically given GM’s (NYSE:GM) target of a sub-$30K EV. As a result, the two shifted their focus to separately making more profitable vehicles.
In the end, Honda’s (HMC) decision to discontinue the Acura ZDX crossover was likely driven by its strained relationship with GM (NYSE:GM), lackluster sales despite incentives of up to $30K for qualified buyers, and sluggish EV adoption.