Sony and Honda have signed a memorandum of understanding for a joint venture to produce and sell electric vehicles.
Two industry titans, one a carmaker and the other a technology firm, have joined forces to form a new business dedicated to the production of electric cars. Earlier this month, Honda and Sony announced the formation of Sony Honda Mobility Inc., with ambitions to begin EV sales and mobility services in 2025.
The new joint venture deal follows the firms’ first announcement in March. The corporation announced on its respected social media channels that they had began to investigate the establishment of an alliance for the combined development and distribution of high-value battery-electric values, as well as to provide mobility services.
While Honda will most likely manage the logistics of manufacturing and vehicle development, Sony may provide its technological experience in sensing, imaging, telecommunications, and networking—tools that might be vital in developing a car of the future.
The new company will be led by senior Honda executive Yasuhide Mizuno, who will take on the role of Chairman and CEO, along with Sony EVP Izumi Kawanishi as President and COO. In a joint statement, corporate leaders claimed that, while the specifics of the alliance were still being worked out, the new firm will be established within a year. Each firm will put $5 billion ($37 million) into the effort. Yasuhide Mizuno, a top Honda official, will serve as chairman and CEO, while Sony executive vice president Izumi Kawanishi will serve as president and chief operating officer.
According to a spokeswoman, the new joint venture’s name has yet to be selected, although Hony and Sonda are obvious options. Honda will be in charge of producing the cars using its current facilities, while Sony will be in charge of developing the software and entertainment content for the mobility service.