As major automakers pare back their EV offerings, Sony and Honda are scrapping their plans to launch a gadget-packed electric vehicle.<\/p>\n
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. <\/p>\n
Sony Honda Mobility is discontinuing the development and launch of the Afeela 1,<\/a> 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. <\/p>\n \u201cThis decision follows discussions between our parent companies, after taking into account the significant impact of Honda\u2019s EV strategy change,\u201d said Akiko Itoga, director of public relations for Sony Honda Mobility. <\/p>\n \u201cThe discontinuation of these [Honda] models significantly impacts Sony Honda Mobility of America in pursuing a viable business case,\u201d she said.<\/p>\n In a release<\/a> on Wednesday, the company said it wouldn\u2019t \u201cbe able to utilize certain technologies and assets that were originally planned,\u201d because of the sudden change in Honda\u2019s plans.<\/p>\n The company will issue refunds to customers who paid $200 to reserve a vehicle. It did not disclose the number of reservation holders. <\/p>\n 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. <\/p>\n 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. <\/p>\n \u201cThe way the market is looking right now, it makes sense they shut down,\u201d said Kristin Shaw, an auto industry analyst and writer. \u201cIt\u2019s a matter of timing.\u201d<\/p>\n The companies could still work together in the future, she said. <\/p>\n Despite a predicted uptick in EV interest driven by sky-high gas prices, the market isn\u2019t welcoming for newcomers at the moment. The average price of gas<\/a> in California was $5.83, according to AAA. <\/p>\n \u201cAfeela might be shelved or it might be trashed,\u201d Shaw said. \u201cRight now, it\u2019s not going to work.\u201d<\/p>\n The creators of Afeela were trying to make a car, entertainment system and personal assistant in one. The discontinued vehicles were to have 28 speakers, wraparound screens, an AI assistant and an entertainment system for Karaoke or playing Sony PlayStation games.<\/p>\n The company was also trying to achieve full autonomy in its vehicles. The Afeela 1 was equipped with 18 cameras, nine radars, 12 ultrasonic sensors and lidar \u2014 allowing it to qualify for level two autonomy, which requires a driver in control.<\/p>\n President Trump has rolled back EV incentives and requirements for automakers to sell green vehicles, leading to fewer options and declining public interest.<\/a> <\/p>\n