Tuesday, 02 January 2024 12:17 GMT

Honda Motor Reportedly Ends US Production Of Acura ZDX EV


(MENAFN- AsiaNet News)

Honda Motor Co. (HMC) is reportedly ending the U.S. production of its Acura ZDX electric crossover, which was produced by General Motors (GM) at its Spring Hill Assembly plant.

CNBC reported on Wednesday, citing a message to plant workers, that the company has decided to cancel all future production of the vehicle at the Tennessee facility. A Honda spokeswoman also confirmed the plans to CNBC, citing market conditions for EVs as the reason behind the decision. Production of the 2026 model year of the vehicle was expected to begin this month.

HMC shares traded 1.5% lower at the time of writing. On Stocktwits, retail sentiment around HMC stayed within the 'bullish' territory while message volume stayed at 'normal' levels.

The Honda spokeswoman told CNBC that the production of the Honda Prologue EV by GM will continue in Mexico.“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,” she told CNBC in a statement. She added that the ZDX will provide a foundation for the electric Acura RSX slated to be produced at the EV Hub in Ohio in the second half of 2026.

Since the vehicle's release in the U.S. last year, the company has sold approximately 19,000 ZDX models, CNBC noted. According to the report, the message to plant workers said that the companies are aligning EV production to better match slower demand, and the decision to end Acura ZDX production has nothing to do with the relationship between the companies or the quality of products.

“Honda's decision isn't a reflection on the capabilities of the Spring Hill workforce or GM's commitment to Spring Hill,” the message read, as reported by CNBC. It also reportedly added that the vehicle shift does not change GM's employment plans for the facility.

HMC stock is up 17% this year and approximately 2% over the past 12 months. 

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