Honda To Cease Production Of Acura ZDX Electric Vehicle Manufactured By General Motors

According to foreign media reports, recently, Japanese automaker Honda has stopped production of the Acura ZDX electric crossover, which is assembled by General Motors, becoming another automaker to scale back its electric vehicle business in the United States.

Honda stated in a statement, "To better align our product portfolio with customer demand, market conditions, and the company's long-term strategic goals, production of the Acura ZDX has been discontinued."

Acura ZDX; Image source: Acura official website

Previously, the Acura ZDX was produced at General Motors' Spring Hill assembly plant in Tennessee, a collaboration resulting from an agreement reached between Honda and General Motors in 2020. Additionally, General Motors manufactures the Prologue electric model for the Honda brand at a plant in Mexico. Both the Prologue and Acura ZDX share similar mechanical structures with several electric vehicles under General Motors, including the Cadillac Lyriq SUV.

As a mid-size crossover, the Acura ZDX has relatively low sales. According to data from industry research firm Motor Intelligence, in the first half of this year, the Acura ZDX sold 10,335 units, accounting for only about 15% of Acura's total brand sales in the United States.

Due to the demand for electric vehicles being lower than expected, many automakers in the United States have postponed or canceled the launch plans for new electric vehicle models, as well as delayed investments in battery factories and other electric vehicle-related projects.

Automotive industry executives have stated that the electric vehicle market is expected to face more challenges following President Trump's cancellation of key support policies for the electric vehicle sector—one of which is the gradual phasing out of a federal tax credit policy on September 30, which previously allowed some electric vehicle buyers to receive a tax credit of up to $7,500.

However, recently, American consumers have driven a significant increase in electric vehicle sales as they rush to purchase cars before the tax credit policy deadline. Data from research firm J.D. Power shows that in August, electric vehicle sales accounted for 11.2% of total U.S. auto sales, marking the second highest record in history.