Honda Motor and Sony Group have scrapped plans to jointly develop an electric vehicle and will rethink their partnership as the carmaker’s financial troubles deepen.
Development of the first- and second-generation Afeela EVs will be shelved effective immediately, the companies said in a joint statement Wednesday. They will also reevaluate Sony Honda Mobility, their joint venture established in 2022.
Honda and Sony’s decision to scrap the Afeela just months before the first vehicles were expected to roll off production lines underscores the strain on legacy automakers due to high costs and fluctuating demand. Honda CEO Toshihiro Mibe, who warned weeks ago of ¥2.5 trillion ($15.7 billion) in EV-related charges, is due to announce a new business plan in May.
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