Sony and Honda pull plug on the $100,000 EV that was set to debut in California
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As major automakers pare back their EV offerings, Sony and Honda are scrapping their plans to launch a gadget-packed electric vehicle.The move by Sony Honda Mobility comes weeks after Honda announced a $15.7-billion writedown of its EV business and said it would cancel planned production for three of its own electric models.Sony Honda Mobility is discontinuing the development and launch of the Afeela 1, a roughly $100,000 electric sedan stuffed with screens, speakers and AI.
The car was set to hit the roads exclusively in California later this year.Business Sony and Honda are launching a luxury EV brand called Afeela, available exclusively in California“This decision follows discussions between our parent companies, after taking into account the significant impact of Honda’s EV strategy change,” said Akiko Itoga, director of public relations for Sony Honda Mobility.
“The discontinuation of these [Honda] models significantly impacts Sony Honda Mobility of America in pursuing a viable business case,” she said.In a release on Wednesday, the company said it wouldn’t “be able to utilize certain technologies and assets that were originally planned,” because of the sudden change in Honda’s plans.The company will issue refunds to customers who paid $200 to reserve a vehicle.It did not disclose the number of reservation holders.
Business California has surpassed a goal set in 2012 to put 1.5 million zero-emission vehicles on the road by 2025, Gov.Gavin Newsom announced at the World Economic Forum.Earlier this month, Honda reported its first annual loss in nearly 70 years as a listed company.
It is not the only automaker to struggle with losses on EVs.Ford took a $19.5-billion writedown and discontinued its electric pickup F-150 Lightning last year.
Stellantis, maker of Jeep, Ram and others, took a $26.5-billion hit after shifting away from EVs in February.“The ...