(Reuters) -Japanese automaker Honda is ceasing production of its Acura ZDX electric crossovers assembled by General Motors, the latest automaker to curtail electric-vehicle activity in the U.S.
The ZDX electric model was assembled at GM’s Spring Hill assembly plant in Tennessee.
“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,” Honda said in a statement.
CNBC first reported the decision.
GM has been building the ZDX for Honda’s premium Acura brand under a partnership the automakers struck in 2020.
GM also builds the Honda-brand EV Prologue at a factory in Mexico. That car and the Acura are mechanically similar to a few of GM’s own EVs, including the Cadillac Lyriq SUV.
Carmakers in the U.S. have been delaying or canceling new electric models and delaying plans for battery factories and other EV-related investments due to weaker-than-expected demand.
Auto executives have said they expect further trouble for the EV market following U.S. President Donald Trump’s removal of key support for the industry, including the pending September 30 phase-out of a $7,500 federal tax credit available to some EV buyers.
The Acura ZDX, a midsize crossover, was a relatively light seller. Acura sold 10,335 of the EVs through the first half of this year, accounting for about 15% of the brand’s overall U.S. sales volume, according to research firm Motor Intelligence.
U.S. electric-car sales have surged recently as buyers rush to beat next week’s tax-credit deadline, which was included in the massive tax bill Trump signed in July. EVs accounted for 11.2% of total U.S. vehicle sales in August, the second-highest level on record, according to research firm J.D. Power.
(Reporting by Aishwarya Jain in Bengaluru and Mike Colias in Detroit; Editing by Sahal Muhammed and Bill Berkrot)
