Sony Honda Electric Vehicle Joint Venture Sued in United States Over Direct Sales Model

According to foreign media reports, on August 22, the electric vehicle joint venture between Sony Group and Honda Motor, Sony Honda Mobility Inc., was sued by the California New Car Dealers Association in the United States. The organization claims that it is illegal for companies to sell cars directly to consumers in California.

The dealer association announced that it has filed a lawsuit in the Los Angeles County Superior Court against Sony Honda Mobility Inc., Sony Honda Mobility America Inc., and American Honda Motor Co., Inc. The association’s members include dealers selling Japanese automobiles, among them dealers of Honda and Honda’s luxury brand Acura.

Sony Honda Mobility plans to officially deliver its first electric vehicle, the Afeela 1, next year and has designated a direct-to-consumer online sales model as its core sales channel.

AFEELA 1; Image source: Sony Honda Mobility

The California New Car Dealers Association stated that Sony Honda Mobility is an affiliated company of Honda, which means that Honda has violated a state law prohibiting automakers from competing with their own franchised dealers through affiliated brands.

This lawsuit demands that Sony Honda Mobility cease direct-to-consumer sales of electric vehicles and seeks compensation for damages.

Sony Honda Mobility has not yet responded to requests for comment regarding the above report.

As part of California law, an amendment that took effect last year requires new automotive manufacturers launching new brands to sell through new or existing dealer networks. Therefore, whether Sony Honda Mobility America is considered an affiliate of Honda Motor America might be a key point in this dispute.

Previously, a spokesperson for American Honda Motor Co. stated that it and Sony Honda Mobility America are independent entities. "American Honda Motor Co. will not participate in the company's decision-making process, nor will it be involved in the distribution, sales, or after-sales service of the Afeela models. Clearly, this brand does not belong to American Honda Motor Co."