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Sony Honda EV joint venture’s online sales plan worries dealers



TOKYO / DETROIT – A new joint venture founded by Japanese Sony Group Corp and Honda’s motobike Engine plans to introduce a premium tram at the end of the decade, and the American automaker authorized dealer are anxious to be part of the sales process.

Sony Honda Mobility say on Thursday they are aiming to deliver the first unnamed EV in 2026, starting in the US, and will sell them online.

The success of Tesla Electric vehicle sales without franchisees are putting pressure on established automakers to overhaul their retail networks. That has dealers across most brands concerned about their place in the changing world and whether margins will be squeezed.

The online aspect of the Sony Honda plan, as well as the lack of details on how the car will be sold and serviced, has raised questions with Honda and Acura brand agents. However, many expect Honda to operate through its existing retail network.

“These issues are definitely a concern,” said Brian Benstock, general manager and vice president of Paragon Honda and Paragon Acura in Queens, New York. “The best way forward is with dealers.”

“We have a role (car manufacturers) that cannot be replicated,” said Benstock, who is also on the Acura national dealer advisory board and spoke to Honda officials about it. new vehicle. “It’s not like Honda wants to hurt their current dealership.”

Some dealers have questioned why Honda would even consider trying to operate outside of its current US sales network with a nationwide reach. Honda has approximately 1,100 Honda dealers and 270 Acura dealers.

A Honda spokesperson referred questions about the joint venture with the new company. Sony Honda spokeswoman Mai Nagadome said there are still a lot of details to be finalized, but sales through dealers have not been ruled out and customers will feel uncomfortable without some service process. after sales.

“It costs to continue to develop products (internal combustion engines) along with electric vehicles and autonomous technology and hardware,” said Peter Hennessy, dealership manager at Atlanta-based Hennessy Motor Company. software for next-generation vehicles is a major challenge. including a Honda shop.

“I partner with Sony, but it should be done with the dealer network, not outside,” he added.

Sony Honda officials promised that the car – which will be manufactured at one of Honda’s factories in Ohio – will include advanced driver assistance features and a new software system developed by Sony, provides recurring revenue-generating cloud-connected services. They are the first details of the venture’s effort since the project was launched in June.

One vehicle concept will be shown at the CES technology show in Las Vegas in January.

Honda has been very secretive about the Sony venture, according to some dealers, but others say that is simply because the schedule is so far away.

In particular, some dealers warn that a move to disrupt their dealer network could violate their franchise agreements, but also acknowledge using a different brand could be a way to avoid that risk. for Honda.

Sony Honda officials declined to say what brand the car will be sold under.

Mike Law, who runs eight import-branded stores for the LaFontaine Auto Corporation, including a Honda store in Dearborn, Michigan, feels the big investments are needed for electric vehicles to prioritize using dealerships now available.

“While some may want to push dealers out, I believe consumers still enjoy the buying process,” he said.

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