Joint venture halts development after Honda scales back electric vehicle ambitions
As has been expected since Honda announce its pullback from the EV market, the joint venture company of Sony Honda Mobility is pulling the plug on its Afeela electric vehicle program, marking the end of one of the auto industry’s more interesting tech-automaker partnerships.
The decision follows Honda’s recent announcement that it expects to take a writedown of up to 2.5 trillion yen as it ramps down EV spending, a move that will push the company to its first annual loss in nearly 70 years as a public company.The joint venture had positioned Afeela as a high-tech, software-driven EV brand that combined the best of Honda’s manufacturing expertise with Sony’s strengths in gaming and entertainment. The first model, the Afeela 1, was slated to begin deliveries in California later this year, with pricing starting at $89,900. A second model had been planned for later in the decade.With Honda stepping back from aggressive EV expansion, the joint venture said it no longer had a viable path to production. It will now issue full refunds to customers who had placed reservations for the Afeela 1.The move highlights the challenges facing new entrants in the increasingly competitive EV market. While established automakers such as Ford and Stellantis have also scaled back EV investments due to sagging demand and constantly shifting government policies, tech companies have struggled even more to break into the market. Apple abandoned its long-running EV project in 2024, while only a handful of nontraditional players, like China’s Xiaomi, have managed to bring vehicles to market.Sony Honda Mobility said it will continue discussions with both parent companies on potential future initiatives, but indicated no plans to revive the Afeela program.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Sony and Honda kill its Afeela EVsFind the latest technology news and expert tech product reviews. Learn about the latest gadgets and consumer tech products for entertainment, gaming, lifestyle and more.
Read more »
Sony and Honda Cancel Development of the Afeela 1 Electric SedanThe Afeela 1 was supposed to go on sale this year, but Honda's decision to cancel its own EV plans is also killing the car from its joint venture with Sony.
Read more »
Sony Honda Mobility Is Canceling Its Announced Afeela ModelsThe $90,000 EV with a screen where the badge should be is not fated to make it out of its various California mall showrooms.
Read more »
Honda’s EV Pivot Just Wiped Out The Entire Sony Afeela BrandThe Afeela 1 was weeks from its first deliveries when Honda's sweeping EV retreat left the joint venture without the tech it needed to bring any of its cars to market
Read more »
Sony et Honda annulent le développement des VÉ Afeela 1 | Actualités automobileLe constructeur japonais Honda abandonne l'Afeela 1, sa berline entièrement électrique développée en partenariat avec Sony.
Read more »
The Afeela EVs From Sony Honda Joint Venture Have Been CanceledSony/Honda joint venture’s future is also in question as the electric car with PlayStation 5 capability will not reach the public.
Read more »