Honda Motor Co. is making a bold move into the US electric vehicle market with a new model and a strategic collaboration with General Motors (GM). The Japanese automaker recently unveiled its first electric SUV, the 2024 Prologue, which will be co-developed and built in a GM plant. The Prologue shares key components, including GM's Ultium batteries, with GM models as part of this collaboration.
John Hwang, the Prologue's development leader, highlighted the advantage of leveraging GM's state-of-the-art electric vehicle hardware to accelerate the vehicle's development. However, the Prologue is only a temporary solution for Honda's electric lineup. The company plans to manufacture electric vehicles at its Ohio facilities using batteries from a newly constructed $4.4 billion joint-venture factory with LG Energy Solution Ltd. These locally-produced electric models, utilizing batteries from the joint venture, are expected to start production in late 2025.
This marks a significant shift in Honda's attitude towards electric vehicles; just last year, the company expressed skepticism about American consumers' interest in EVs. However, Honda's CEO, Toshihiro Mibe, now has ambitious plans to introduce 30 new battery-electric models globally and deliver nearly 500,000 EVs in North America alone by 2030.
Honda has faced challenges with its previous attempts at fully electric vehicles in the US, having introduced and later withdrawn three different EV models. Unlike its predecessors, the Prologue and its upscale counterpart, the Acura ZDX, are being manufactured in North America, rather than Japan. Honda has not disclosed the specific GM plant where these vehicles are being produced.
With an estimated range of 300 miles per battery charge and a price tag in the high-$40,000 range, the Prologue will compete directly with Tesla's Model Y. However, Honda considers its main rivals to be Asian brand EVs such as the Nissan Ariya, Toyota bZ4X, Hyundai Ioniq 5, and Kia Niro.
While the Prologue aims to attract new buyers, its primary goal is to retain existing Honda customers who have been eagerly waiting for a fully electric model. Honda expects to sell around 40,000 units in the Prologue's debut year, gradually increasing sales to approximately 70,000 units per year.
Mamadou Diallo, Honda's US sales chief, expressed confidence in the Prologue's success, citing the brand's strong reputation for hybrid models, which currently account for almost 20% of Honda's US sales. Diallo believes that the success of their hybrids sets the stage for the brand's future electric vehicles.
The Prologue's design is a departure from Honda's typical styling, partially due to its reliance on GM's architecture. While the partnership with GM has been in the works for five years, Honda's decision to produce batteries locally raises questions about their broader plan to use GM batteries and vehicle platforms. However, Honda has not provided any further details on their co-development projects with GM.
The Prologue's unique appearance, resembling a blend of a Chevrolet Blazer and a Subaru Outback, features the bold display of the word "Honda" across the back. This distinctive design element aims to help people easily identify the vehicle on the road.
Overall, Honda and GM's collaboration marks an important step for Honda's entry into the EV market in the US. With the Prologue serving as a bridge, Honda aims to make a significant impact with its future electric models, catering to both loyal Honda customers and new EV enthusiasts in the country.