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Sony-Honda JV Scraps Afeela EV After Honda Strategy Overhaul

Sony Honda Mobility, the joint venture between Sony and Honda, has discontinued its Afeela electric vehicle development due to Honda's strategic shift in the EV business. This decision follows Honda's announcement of a potential 2.5 trillion yen writedown. The venture will refund reservations for the Afeela 1 in California, where it was set to launch at $89,900. Both Sony and Honda stated that the halt would not materially affect their financial positions. The JV had planned a second model for 2028 and aimed to merge Honda's engineering with Sony's software strengths. The move highlights the challenges in the rapidly evolving EV market.

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Sony-Honda JV Scraps Afeela EV After Honda Strategy Overhaul

Sony Honda Mobility has halted development of its Afeela electric vehicles, citing Honda's strategic reassessment in the EV sector. The joint venture will issue full refunds to customers who reserved the Afeela 1 in California.

Reason for Halt

  • Honda's overhaul of its EV business strategy prompted the decision.
  • Sony Honda Mobility stated there is no viable path to bring Afeela models to market.

Financial Implications

  • Honda flagged a writedown of up to 2.5 trillion yen ($15.7 billion).
  • Both Honda and Sony expect the impact on their financial forecasts to be immaterial.
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Customer Refunds

  • Full refunds will be provided to customers with reservations for the Afeela 1 in California.
  • The Afeela 1 was priced starting at $89,900, with deliveries originally planned for late 2023.

Future Plans

  • A second model based on a newer prototype was anticipated for launch as early as 2028.
  • Sony Honda Mobility will continue discussions with Sony and Honda regarding its future direction.

Background

  • The joint venture was established to combine Honda's vehicle engineering expertise with Sony's software and gaming capabilities to compete in the EV market.
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