Driving the news: Acura has discontinued production of its ZDX electric SUV effective immediately, according to an internal memo obtained by CDG News.
The details: All previously allocated 2026 model year units have been canceled.
The memo states the decision was made "to better align our business with the needs of our customers" following discussions with co-development partner General Motors $GM ( ▲ 2.29% ).
"This decision was led in part by the slower-than-anticipated rate of consumer EV adoption as well as recent policy changes impacting EV production and sales," the memo reads.
Between the lines: The cancellation, confirmed by Acura, comes despite the ZDX selling well enough to nearly exhaust inventory. As of the beginning of September, national data shows only about 400 2024 model year units remain in stock, reports CarsDirect.
However, the luxury EV required massive incentives to move.
Customers could lease a ZDX for just $5 more per month than a Honda CR-V Hybrid through a combination of federal tax credits, captive lease cash totaling $11,400, and additional regional bonuses worth up to $2,300.
The total incentive package reached nearly $30,000 off MSRP for some buyers (unprecedented discounting that likely made each sale unprofitable for the automaker).
Zooming out: Acura joins Stellantis $STLA ( ▼ 2.63% ), Honda, Nissan, and Toyota in scaling back electric vehicle plans as automakers reassess EV strategies amid changing market conditions and policy uncertainty.
What they’re saying: “Acura adjusted appropriately to the changing political and market conditions. It takes true leadership to be able to do this,” said Brian Benstock, general manager and vice president of Paragon Acura, the #1 certified Acura dealer in the world.
Brian Benstock
“In fact, we can credit Acura with listening to its dealers. This is an important step in moving forward. The best is yet to come,” he added.
Looking ahead: Despite the production halt, Acura will continue providing full service, parts, and warranty support for existing customers.
This is a developing story that Car Dealership Guy News will continue to monitor.
Have a tip or insider information? Contact CDG News at [[email protected]]
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