Honda and Sony’s decision to scrap the Afeela, a premium EV that combined Honda’s vehicle development and production capabilities with Sony’s expertise in image sensors and entertainment, underscores the strain on legacy automakers due to the mounting costs of EV development. Honda chief executive officer Toshihiro Mibe, who warned weeks ago of JPY2.5 trillion (US$15.7 billion or $20.1 billion) in EV-related charges, is due to announce a new business plan in May.
“Honda had already announced an EV overhaul, so there was concern about what would happen to Afeela,” said Toyo Securities Co analyst Hideki Yasuda. “It’s a big driver for Sony, so it should continue on, with or without Honda.”
Customers who had already placed orders for the first-generation Afeela will be fully reimbursed, according to the carmaker.
Honda has also cancelled the development and launch of three EV models planned for North America, and is forecasting operating losses of JPY270 billion to JPY570 billion for the fiscal year ending in March.
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