Honda Motor and General Motors (GM) are scrapping a plan to jointly develop affordable electric vehicles (EVs), the companies said on Wednesday, just a year after they agreed to work together in a $5 billion effort to try to beat Tesla in sales.

The decision underscores GM’s strategic shift to slow the launch of several EV models to focus on profitability, as it grapples with the rising cost of United Auto Workers strikes, which surged to $200 million a week this month.

[Both automakers insist that their commitment to EV development remains firm, but this suggests that the return on investment hasn’t justified more spending in this direction. Plus, the UAW sees the EV as a significant threat to its workers, and GM may have to throw the union a very big bone to get workers back on the lines. — Ed]