Honda has discontinued the Acura ZDX, an electric crossover developed with GM, due to slow demand and high costs, despite its brief market presence and modest sales.

The ZDX, launched in 2024 with a starting price of around $87,685, sold approximately 11,520 units in 2024, but sales have been disappointing, with only about 6,119 units sold in the U.S. over four years.

Honda's decision to end ZDX production is driven by market conditions, not product quality or GM relationship, and does not affect the employment plans at the Spring Hill plant, which will continue producing engines and the Chevrolet Blazer starting in 2027.

GM remains financially healthy with $187.6 billion in revenue, a three-year growth rate of 24.3%, and expanding margins, though it faces risks like high leverage and sector challenges, with an Altman Z-Score of 1.25.

GM's valuation shows a P/E ratio of 9.05, and despite some overvaluation concerns, high institutional ownership at 85.31% indicates strong investor confidence.

GM plans to increase U.S. vehicle production with a nearly $5 billion investment over the next two years, including producing the Chevrolet Blazer at the Spring Hill plant, which will continue operations unaffected by the ZDX discontinuation.

The Spring Hill plant will also see increased engine production and will begin assembling gas-powered Chevrolet Blazers in 2027, maintaining employment stability.

GM's recent memo reassures that the decision to cease ZDX production is not a reflection of the plant's capabilities or GM's commitment, as the company continues to see strong EV sales and growth plans.

GM has a history of recovery from bankruptcy in 2009, and it regained U.S. market share leadership in 2022 after disruptions caused by the chip shortage in 2021.

Although production has ceased, Honda will continue supporting existing ZDX units with service, parts, and warranties, and dealerships are offering rebates up to $30,000 to clear remaining inventory.

Honda is developing the RSX as a 'Software Defined Vehicle' capable of OTA updates, with a production version expected to be revealed at the Los Angeles auto show in November.

Honda remains committed to hybrid and EV development, with plans to release seven new EV models and invest $11 billion in North American EV manufacturing, including a new plant in Ohio.