Sony Honda Mobility CEO Yasuhide Mizuno speaks at a news conference in Tokyo, on Oct. 13, 2022. Sony and Honda’s joint mobility venture unveiled a new EV prototype in January.
Kiyoshi Ota | Bloomberg | Getty Images
Sony Honda Mobility, the joint venture between Japanese electronics giant Sony and automaker Honda, on Wednesday said it would stop developing its Afeela electric vehicles, citing Honda’s strategy reassessment for EVs.
The move follows Honda’s move to overhaul its EV business for which the carmaker flagged a writedown of as much as 2.5 trillion yen ($15.7 billion) earlier this month. The JV said the decision left it without a viable path to bring the Afeela models to market.
Sony Honda Mobility will issue full refunds to customers who made reservations for what was supposed to be its first model, the Afeela 1, in California, it said in a statement. It added that it would continue discussions with Sony and Honda regarding its future plans.
The JV had been expected to begin deliveries of the Afeela 1 in California late this year and had sought to launch a second model based on a newer prototype as early as 2028. It began taking orders for the Afeela 1 last year, with prices starting at $89,900.
In a statement, Honda said the impact from the move on its revised full-year consolidated financial forecasts for the fiscal year ending this month was expected to be immaterial.
Sony said it did not expect the discontinuation to have a material impact on its financial situation.
The venture was formed to combine Honda’s experience in engineering and building vehicles with Sony’s software and gaming expertise to catch up with EV rivals.