Honda and Sony announced on Friday that they are exploring the possibility of forming a joint venture to develop and build electric vehicles. The two companies state that with the joint venture, they will “participate in the joint development and sale of high value-added electric vehicles (EVs) and market them along with mobility services.”
There were no details regarding the market positioning and whether the new venture would target Europe, the US, China, and any combination of the three. Only Japan would seem too small a market for this level of joint venture.
The announcement is not as unexpected as it might initially seem. Sony, the company known across generations for personal electronics, from the Walkman to the Playstation, surprised everyone with its electric sedan concept Vision-S presented at CES in January 2020. A year later, it indicated that the model was more than a demonstration for the company’s entertainment technology, with serious road testing. Then, this year, it revealed a follow-up concept, the Sony Vision-S 02 crossover SUV.
However, the “strategic alliance” and joint venture are still in the discussion stage, and while they have signed a memorandum of understanding, Honda and Sony still need to negotiate agreements for joint development and manufacturing, as well as regulatory aspects.
As the two companies point out, the alliance could be beneficial for both parties as it combines Honda’s expertise in mobility development, manufacturing, sales, and services with Sony’s technological focus, especially in imaging, sensing, and connectivity.
The most surprising aspect of the announcement is the timeline, indicating that this could be something akin to the Volvo/Geely North Star. The first electric vehicle from the new venture would be sold from 2025, according to the companies. While Honda would be responsible for manufacturing, the “new venture” would handle planning, design, development, and sales.
This is after the arrival of Honda’s electric vehicles built under an agreement with GM (one for Acura, the other for Honda) but before Honda’s own dedicated electric vehicle platform arrives. Therefore, it underscores that, in any case, seeking a new venture could expedite things.
