The all-electric vehicle General Motors was going to build for American Honda Motor at GM’s Spring Hill Assembly plant in Tennessee has been canceled, the Detroit Free Press has learned.
According to a memo from GM Spring Hill management to its workforce, which was obtained by the Detroit Free Press, the 2026 all-electric Acura ZDX luxury SUV will no longer be produced. A spokeswoman for Honda confirmed the decision.
“Honda has decided to cancel all future production of the Acura ZDX, which was slated to begin here at Spring Hill this month,” the memo, sent out earlier this week, read. “We have a strong relationship with Honda that we’ve built over many years; and we look forward to working with Honda on future opportunities.”
2024 Acura ZDX Type S electric SUV
GM spokesman Kevin Kelly declined to comment on the news saying it was a Honda decision.
In an email to the Detroit Free Press, Honda spokeswoman Jessica Fini said the decision to end production of the Acura ZDX was made “to better align our product portfolio with the needs of our customers and market conditions, as well as our long-term strategic goals.”
The 2026 ZDX was expected to start at $66,000, according to Car and Driver. But demand for electric vehicles has not grown at the rate many automakers thought it would, prompting GM and others to scale back on EV production. Soon, with the Federal Tax Credit of up to $7,500 on qualifying EVs about to expire on Sept. 30, many experts predict a big decline in future EV sales.
“ZDX has played a valuable role for the Acura brand, and will provide a foundation we will build on next year with the arrival of the all-electric Acura RSX, which will be produced at the EV Hub in Ohio in the second half of 2026, as well as with hybrid-electric Acura models now in development,” Fini said. “Acura ZDX customers will continue to receive full product support through our dealer network, including service, parts and warranty coverage.”
Fini said that Honda is still in production with GM for the co-developed Honda Prologue EV and Honda has a fuel cell production facility it operates with GM in Brownsville, Michigan.
GM’s memo assured the Spring Hill workforce that Honda’s decision was not a reflection on their production capabilities or GM’s commitment to Spring Hill.
The 2024 Acura ZDX electric luxury SUV is on sale now. Prices start at $64,500.
“We are on track to continue Cadillac XT5 production and add production of the gas-powered Chevrolet Blazer starting in 2027,” the memo said.
Additionally, the memo said GM will add a third shift at its nearby engine plant to support additional GEN V engine assembly capacity. GM uses that engine, a small block V-8, in its trucks.
“The outlook is strong for the overall company as well,” GM’s memo said. “GM set EV sales records in July and August; and we are the No. 2 OEM in EVs. As we navigate market dynamics, GM will continue to make strategic adjustments to align with customer demand and the rate of EV industry growth by leveraging our flexible manufacturing footprint. We will communicate updates as we have them.”
As the Detroit Free Press reported earlier this month, GM is planning several weeks of downtime in the upcoming months at Spring Hill, where GM also builds its all-electric Cadillac Lyriq and Vistiq SUVs. The downtime will mean a temporary reduction in staffing levels of about 700 employees at the plant being laid off.
“General Motors is making strategic production adjustments in alignment with expected slower EV industry growth and customer demand by leveraging our flexible ICE and EV manufacturing footprint,” Kelly told the Free Press earlier this month in relation to GM’s temporary idle of its plant. “GM’s U.S. manufacturing footprint remains our strength, and we are in the process of investing nearly $5 billion over the next two years to further increase domestic vehicle production, enabling the ability to assemble more than 2 million vehicles per year in the U.S.”
Honda’s second quarter sales release said it sold about 1,300 ZDX vehicles in June leading to its best sales quarter since launch despite lean inventory in preparation for the 2026 model. Through the first half, Honda said it sold 10,335 ZDX vehicles in the United States, up from 338 in the year-ago period.
But it also heavily incentivized those sales. According to published reports, through a combination of federal tax credits, captive lease cash totaling $11,400, and regional incentives worth up to $2,300, some customers could lease a ZDX for $5 more per month than a Honda CR-V Hybrid.
GM and Honda had formed a partnership in April 2022 to develop a series of low-priced EVs on a new joint platform with the goal of building millions of cars starting in 2027. The EVs would have included compact crossover vehicles, built using GM’s Ultium battery technology. The companies had also planned to discuss future EV battery technology collaboration to reduce the cost of electrification, improve performance and drive sustainability for future EVs.
“After studying this for a year, we decided that this would be difficult as a business, so at the moment, we are ending development of an affordable EV,” Mibe said in October 2023.
