Sony (NYSE: SONY) and Honda (NYSE: HMC) announced plans to form a joint venture as a means to sell electric vehicles. The company will be incorporated later this year, and deliveries are set to commence by 2025. Nevertheless, details regarding the deal are still being discussed and will be subject to regulatory approval, according to the two companies.
“The new company is expected to plan, design, develop, and sell the EVs, but not own and operate manufacturing facilities,” they added. Honda will manage the production at one of its factories.
Under the agreement, Sony is set to provide the “imaging, sensing, telecommunication, network, and entertainment technologies,” while Honda would take care of the vehicles themselves.
“With our imaging and sensing, cloud, 5G and entertainment technologies combined with our content mastery, we believe Sony is well-positioned as a creative entertainment company to redefine mobility,” Sony CEO Kenichiro Yoshida said at CES in January.
Honda CEO, Toshihiro Mibe, revealed Friday that the companies had the potential to work well together.
“Although Sony and Honda are companies that share many historical and cultural similarities, our areas of technological expertise are very different.”
“Therefore, I believe this alliance, which brings together the strengths of our two companies, offers great possibilities,” he said in the statement.