Afeela Honda's Change of Strategy Stops Sony's E-Car

Source: dpa 1 min Reading Time

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The discontinuation of Honda's planned e-cars has consequences for Sony Honda Mobility. The joint venture now lacks the technology for its Afeela models.

With the Affela 1 in the Signature Edition, the Sony Honda Mobility joint project was to be launched in a few months' time.(Image: SHM)
With the Affela 1 in the Signature Edition, the Sony Honda Mobility joint project was to be launched in a few months' time.
(Image: SHM)

The ambitious car plans of Japanese electronics giant Sony have failed for the time being following a change in strategy by its partner Honda. The first electric vehicles under the brand name Afeela were originally due to go on sale to buyers in the USA this year. However, the joint venture Sony Honda Mobility has now announced that the first Afeela 1 will not be launched and that the development of a second model will also be discontinued.

Honda recently scaled back its own electric car plans and also canceled two planned new models. As a result of the decision, the company will not have access to some of Honda's technologies and capacities—and will not be able to launch the models on the market as planned. However, the joint venture will remain in talks with Sony and Honda about future plans, it said.

Sony announced its entry into the car business at the beginning of 2020 and has been working with Honda on the Afeela vehicles ever since. Part of the concept was to bring Sony's strengths in electronics, entertainment and gaming with the Playstation to a future market in which cars were seen as computers on wheels. Just a few days ago, the partners announced the opening of a delivery center in California.

Trump Puts the Brakes on E-Car Business

However, the electric car business in the USA suffered a drastic setback. President Donald Trump ensured that climate protection requirements were removed and also abolished a tax credit of 7,500 dollars for the purchase of electric vehicles. Electric car sales collapsed as a result. Other companies such as the US car giants Ford and General Motors also scaled back their electric car projects.

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