Sony and Honda Motor of Japan have officially agreed to form an evenly owned joint company that will begin selling electric vehicles in 2025.
Honda, like its larger rival Toyota Motor, has been slower to transition to electric vehicles (EV) than other global manufacturers and is under pressure from investors to produce cars that are carbon-free and equipped with cutting-edge technology such as self-driving capabilities.
The automaker, which currently only provides one EV, the Honda e, has stated that it wants to launch 30 EV models and produce 2 million EVs yearly by 2030.
Honda will provide its skills in making and marketing automobiles to the JV, which was first announced in March and is called Sony Honda Mobility, and Sony will bring its software and technological capabilities, the firms said in a statement on Thursday.
Each company will contribute 5 billion yen ($37.52 million) to the joint venture.
The logos of Sony Corporation and Honda Motor are shown at their joint press conference location in Tokyo.
Yasuhide Mizuno, a senior Honda executive, will serve as chairman and CEO of the joint venture, and Izumi Kawanishi, a Sony executive vice president, will serve as president and chief operating officer.
Honda, the developer of popular models such as the Accord and Civic, is battling with squeezed margins as raw material costs rise and a global chip shortage hampers manufacturing.
Earlier this year, the business said that it would collaborate with General Motors to produce a series of lower-priced EVs based on a new joint platform, extending on plans for GM to begin manufacturing two electric SUVs for Honda in 2024.
Honda and other Japanese automakers' shares fell between 3% and 5% on Friday, as global equities fell amid fears that abrupt interest rate increases by central banks will tip economies into recession.
(Source:www.businesstoday.in)
Honda, like its larger rival Toyota Motor, has been slower to transition to electric vehicles (EV) than other global manufacturers and is under pressure from investors to produce cars that are carbon-free and equipped with cutting-edge technology such as self-driving capabilities.
The automaker, which currently only provides one EV, the Honda e, has stated that it wants to launch 30 EV models and produce 2 million EVs yearly by 2030.
Honda will provide its skills in making and marketing automobiles to the JV, which was first announced in March and is called Sony Honda Mobility, and Sony will bring its software and technological capabilities, the firms said in a statement on Thursday.
Each company will contribute 5 billion yen ($37.52 million) to the joint venture.
The logos of Sony Corporation and Honda Motor are shown at their joint press conference location in Tokyo.
Yasuhide Mizuno, a senior Honda executive, will serve as chairman and CEO of the joint venture, and Izumi Kawanishi, a Sony executive vice president, will serve as president and chief operating officer.
Honda, the developer of popular models such as the Accord and Civic, is battling with squeezed margins as raw material costs rise and a global chip shortage hampers manufacturing.
Earlier this year, the business said that it would collaborate with General Motors to produce a series of lower-priced EVs based on a new joint platform, extending on plans for GM to begin manufacturing two electric SUVs for Honda in 2024.
Honda and other Japanese automakers' shares fell between 3% and 5% on Friday, as global equities fell amid fears that abrupt interest rate increases by central banks will tip economies into recession.
(Source:www.businesstoday.in)
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