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Subaru Is Already Using Solid-State Batteries, But Not For What You Think

  • The new batteries are being used shortly after Subaru launched the all-electric Uncharted.
  • Maxell’s solid-state cells use a ceramic-like electrolyte rather than a liquid one.
  • Subaru has previously needed to charge robot batteries every one or two years.

Advanced solid-state batteries have long been regarded as the holy grail for electric vehicles and Subaru has joined fellow Japanese brands Toyota and Nissan by working to implement these advanced new packs. However, rather than using them in any of its EVs, Subaru is instead utilizing solid-state batteries in robots which build engines and transmissions.

Read: Subaru Is Having Second Thoughts On EVs

The batteries in question come from Japanese electronics firm Maxell Ltd and have been primarily used as backup batteries in industrial equipment, designed to protect against computer memory loss. These solid state cells, like those set to be used by future EVs, have a ceramic-like electrolyte rather than a liquid one. This makes them more energy-dense and allow them to support fast charging than traditional lithium-ion cells.

Why Robots Come First

Maxell’s batteries are less than 1 kWh in capacity, and therefore far too small to use in a vehicle. However, they have been adapted for use with Subaru’s factory robots which usually need battery changes every one or two years. These new batteries can last for up to 10 years.

According to Auto News, Subaru has already introduced the batteries into nine robots at its Oizumi engine and transmission plant north of Tokyo.

 Subaru Is Already Using Solid-State Batteries, But Not For What You Think

“By installing all-solid-state batteries in the industrial robots used at our factory, Subaru aims to reduce both industrial waste and maintenance work for industrial robots by utilizing the long battery life,” the company said in a statement.

Subaru’s EV Balancing Act

A few short months ago, Subaru acknowledged that it was “re-evaluating” its electrification strategy, becoming just the latest in a slew of car manufacturers that have become increasingly concerned with the slowing growth of EV sales in certain markets. However, it recently revealed its second EV for North America, named the Uncharted.

This is the brand’s take on the new electric Toyota C-HR but has a slightly more rugged design. The flagship model has a pair of electric motors that combine to deliver 338 hp and enable it to hit 60 mph (96 km/h) in 5 seconds.

 Subaru Is Already Using Solid-State Batteries, But Not For What You Think

Mugen Turns Honda’s Tiny EV Into A Pocket-Sized Street Fighter

  • Mugen gives the Honda N-One e an aggressive bodykit and other accessories.
  • Aero parts are complemented by performance dampers and new alloy wheels.
  • All of the Mugen accessories will be available in Japan starting this autumn.

A new spark is coming to city streets, and it’s wearing a feisty grin. The Honda N-One e:, a fully electric kei car set to launch in Japan and Europe, already has a distinctive, slightly mischievous look. Now Mugen has stepped in with a fresh body kit and a collection of accessories to give it even more personality.

The exterior upgrades include a front splitter, side skirts, and a compact rear diffuser, all finished in matte black. A matching spoiler and 15-inch alloy wheels complete the package, giving the petite EV the stance of a scaled-down hot hatch.

More: Mugen Unleashes Aero Fury On Honda Freed Minivan

Mugen hasn’t stopped at just aerodynamics. Special decals featuring the Mugen name can be applied to the front bumper, grille, side panels, and rear bumper. An additional badge on the front fenders makes sure the car’s tuning pedigree is unmistakable.

Inside, the Mugen touch continues with branded scuff plates and door cubbies. The accessory list extends to tailored floor mats and a matching cover for the boot floor. Practical touches include window visors and hydrophilic mirror coatings designed to improve wet-weather visibility.

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Subtle Performance Tweaks

Mugen’s version of the Honda N-One e: retains the stock electric motor, delivering 63 hp (64 PS / 47 kW) in line with kei car regulations. Performance dampers, paired with the larger alloy wheels, promise more responsive handling.

The only limitation for spirited drives on Japan’s winding roads is the range, estimated at over 245 km (145 miles) between charges.

More: Honda Prelude’s Prices Might Shock Even GR Supra Owners In Japan

The new accessories for the Honda N-One e: will be available in Japan starting autumn 2025, with pricing set to be announced closer to their market launch.

The EV is expected to make its European debut at the IAA Show in Munich this September. It will be interesting to see whether the Mugen parts will also be made available in the Old Continent.

 Mugen Turns Honda’s Tiny EV Into A Pocket-Sized Street Fighter
Honda N-One e:

Lexus Is About To Kill Off These Long-Running Models

  • Lexus will end production of the IS 300, IS 300h, IS 350, and IS 500 in November 2025.
  • The closely-related RC 300, RC 300h, RC 350, and RC F coupes will follow the same fate.
  • Another Lexus model that will bite the dust is the electric UX, likely followed by the hybrid.

Lexus is preparing to wind down production on several key models, signaling the end of an era for some of its longest-running nameplates. Most variants of the IS sedan, the RC coupe, and the fully electric UX SUV are on their way out, with production in Japan officially scheduled to stop in November 2025.

Those who visit the dedicated model pages on Lexus’ official website in Japan will see the following announcement:

“Thank you for considering our vehicles. Production of the IS 500 / IS 350 / IS 300h (AWD) / IS 300 / RC 350 / RC 300h, and RC 300 will end in November 2025. Sales will end once orders reach the production numbers for November. Depending on when you consider purchasing a vehicle, some packages may no longer be available. Please contact your Lexus dealer for details.”

More: The Last V8 Lexus Sports Sedan Marks The End Of An Era

A similar message (albeit with a more apologetic tone) appears on the page for the RC F Final Edition, which serves as a sendoff for the V8-powered coupe introduced in January 2025. This version was limited to just 200 units in Japan, and Lexus has confirmed that all of them have been spoken for:

“Thank you for your continued patronage of our products. We regret to inform you that the RC F ‘Final Edition’ has reached its limited number of 200 units and is now sold out. We would like to thank you for your continued patronage of the RC F. The RC ‘Final Edition’ will be on sale until production ends in November 2025.”

 Lexus Is About To Kill Off These Long-Running Models
Lexus RC F Final Edition
 Lexus Is About To Kill Off These Long-Running Models
Lexus IS 500 Climax Edition

With this, only the rear-wheel-drive IS 300h will remain in production for the Japanese market, while all other IS and RC variants are being phased out.

An Aging Lineup But Changes are Coming

This development doesn’t come as a major surprise. Lexus recently introduced what are expected to be the final model year updates for both the IS sedan and the RC coupe. These vehicles date back to 2013, making them over a decade old. The IS received facelifts in 2017 and 2020, while the RC underwent a mid-cycle refresh in 2018.

More: Lexus Sedan’s Radical Redesign Could Finally Bring Back The IS Spirit

As reported by Creative Trend, a new generation of the IS is rumored for 2026. Despite earlier plans for going EV-only, the new IS is expected to offer both electric and hybrid powertrain options, following the example of the larger Lexus ES sedan.

The situation is a little bit more complicated for the RC coupe, which might not get a direct successor. Instead, Lexus is reportedly working on a sporty coupe that could potentially replace both the RC and the LC. The latter is also in its twilight years, as hinted at by the recently-unveiled LC 500 Pinnacle Edition. The end date for the LC production is expected in 2026 although a specific date has yet to be set.

UX 300e Also Set to Exit

Last but not least, the automaker has also announced that production of its smallest electric SUV will end in November 2025. We’re talking about the UX 300e, that was unveiled in 2019, a year after the debut of the gasoline and hybrid versions of the UX in 2018.

Japanese newspaper Nikkan Kogyo Shimbun reports that the UX 300h hybrid is expected to follow, with production ending during the 2025 fiscal year, which concludes on March 30, 2026. While Lexus hasn’t announced a successor, the UX remains a globally marketed model in a highly competitive segment. Its close ties to the Toyota C-HR and Corolla Cross suggest a next-generation version is likely in development.

 Lexus Is About To Kill Off These Long-Running Models
Lexus UX 300e

Honda’s Smallest Electric Car Can Power Your Home And More

  • Honda has revealed its smallest electric car, the N-One e:.
  • The tiny EV can be used to power a home or other devices.
  • Its single electric motor is expected to make 63 hp (47 kW).

It may be small in size, but Honda’s cute N-One e: prototype made a big splash at this month’s Goodwood Festival of Speed even if it didn’t make a lot of noise in the process. Now, the production version of this pint-sized electric car has made its official debut in Japan.

Related: One Cheap Adapter Unlocks A Huge Perk For Acura And Honda EV Owners

An electric kei microcar, the N-One e: is a slab-sided, high-roof, boxy city car with a friendly robot-like face and tiny wheels that make it look cute and gawky at the same time. Unlike the Goodwood car, which featured fender flares, the Japanese version goes without to ensure it complies with the kei rules that govern everything from external dimensions to power outputs.

Built for Kei Compliance

So although Honda hasn’t revealed much in the way of technical spec, we can be sure it measures less than 3,400 mm (133.9inches) long and produces no more than 63 hp (64 PS / 47 kW) from its single electric motor.

Its electric hardware is almost certainly shared with the taller N-Van e: revealed last year, which Honda claimed could travel 152 miles (245 km) on a charge – the N-One will eke out a few more miles than that. The N-Van accepts 50 kW DC charging, which is slow, but the small battery can be charged in around 30 minutes.

Simple, Practical Interior With Smart Touches

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The N-One’s interior looks simple, but not totally basic, and we like the fact that there are plenty of physical buttons and a rotary volume dial on the media screen. The transmission selector on the console looks much like the one on Hondas familiar to us in Europe and the US, and a simple button to the right allows the driver to easily engage a one-pedal mode.

A shelf below the touchscreen provides an obvious place to leave your smartphone within easy reach of the charging port (no wireless charging here) and the rear seats fold flat with a 50:50 split to maximize practicality. But the real headline feature is the V2L function that allows owners to use the N-One to power their homes during outages or other devices like electric bikes or laptops.

V2L Capability Adds Real-World Utility

To use V2L, owners will need to purchase an adaptor from Honda’s accessory catalog, which also includes a dash-top LED indicator to let you know how full the battery is and a sporty cosmetic kit with twin Shelby-style stripes running front to back.

Japanese sales of the N-One begin this September, the same month Honda is expected to give the pint-sized EV its European debut at the IAA in Munich. Sadly, there are no plans to bring the car to the US.

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Honda

US-Japan trade deal sets 15% tax on imported vehicles, $550B investment in US

New Nissan cars are driven onto a rail car to be transported from an automobile processing terminal located at the Port of Los Angeles on April 3, 2024 in Wilmington, California. (Photo by Mario Tama/Getty Images)

New Nissan cars are driven onto a rail car to be transported from an automobile processing terminal located at the Port of Los Angeles on April 3, 2024 in Wilmington, California. (Photo by Mario Tama/Getty Images)

WASHINGTON — President Donald Trump said late Tuesday he struck a “massive” trade deal with Japan, lowering his threatened tariffs on Japanese products.

The deal, according to Japanese negotiators, will include a lower rate on the country’s top export: automobiles.

Trump’s declaration of a new framework comes as a legal fight over a large portion of his tariff policy will be heard in federal appeals court next week.

The president announced via Truth Social Tuesday evening that Japan had agreed “at my direction” to invest $550 billion in the United States and will open its markets to more American products, including cars, trucks, rice and other agricultural goods.

In exchange, Trump agreed to lower what he calls “reciprocal” import taxes on Japanese products to 15%, down from the 25% rate he threatened in early July.

Tariffs are import taxes paid by U.S. companies and individuals who purchase goods from other countries.

While some details remained unclear, Trump said the agreement is “the largest Deal ever made,” and continued in a post on his online platform that “there has never been anything like it.”

Japan’s government confirmed the new deal Wednesday. Chief Cabinet Secretary Yoshimasa Hayashi said the parties agreed to a 15% tariff on Japanese vehicles and auto parts imported into the U.S. without any volume restrictions — down from the blanket 25% U.S. tariff on foreign cars that went into effect in April. Hayashi delivered the remarks through an English translation during a morning press conference.

Jeff Schott, senior fellow at the Peterson Institute for International Economics, said securing $550 billion in investment from Japan would set the agreement apart from other trade deals.

“There isn’t a lot of information about over what period of time this would cover, and how it would be financed, and things like that, but the headline number of $550 billion is certainly notable, if it’s believable and if it’s achievable,” Schott said Wednesday in an interview with States Newsroom.

While specifics are unknown, possible investments from Japan might include Nippon Steel’s takeover of U.S. Steel, or a joint venture to export liquified natural gas from Alaska.

Schott said the trade deal “is likely going to set a template” for trade talks with other nations, including ongoing negotiations this week in Washington, D.C., with South Korean officials.

Aug. 1 deadline set

The news of a deal with Japan came just after the White House announced new trade arrangements with Indonesia and the Philippines ahead of a self-imposed Aug. 1 deadline, when steeper tariffs are set to trigger on trading partners around the world.

Trump had threatened Japan in a letter earlier this month with a 25% “reciprocal” tariff on all Japanese goods set to begin Aug. 1, in addition to special sectoral and national security tariffs on foreign automobiles, at 25%, and imported steel and aluminum, which now sit at 50%.

The president shocked global markets in early April when he announced a universal 10% tariff on every foreign good coming into the U.S., plus staggering additional “reciprocal” import taxes on major trading partners based on the country’s trading relationship with the U.S.

Trump initially slapped a 24% reciprocal tariff on Japan, which imports less from the U.S. than U.S. entities buy from Japan. The U.S. ran a $69.4 billion trade deficit with Japan in 2024, according to the Census Bureau.

Trump has twice delayed his so-called reciprocal tariffs on other economies as his administration attempts to leverage the threats into agreements. The administration has yet to strike a new deal with the European Union, another major trading partner.

Court hearing

The U.S. Appeals Court for the Federal Circuit is set to hear oral arguments July 31 over Trump’s reciprocal tariffs, which he triggered by declaring international trade a national emergency under the International Emergency Economic Powers Act.

The U.S. Court of International Trade struck down Trump’s emergency tariffs as unconstitutional in a May 28 decision, following two legal challenges brought by a handful of business owners and a dozen Democratic state attorneys general.

Arizona, Colorado, Maine, Minnesota, Nevada, New Mexico and Oregon were among the states that brought the suit.

V.O.S. Selections, a New York-based company that imports wine and spirits from 16 countries, led the business plaintiffs. Others included a Utah-based plastics producer, a Virginia-based children’s electricity learning kit maker, a Pennsylvania-based fishing gear company and a Vermont-based women’s cycling apparel company.

Upon appeal from the White House, the Federal Circuit allowed Trump’s tariffs to remain in place while the case moved forward.

Nissan’s Struggling Factory May Soon Build EVs You’ve Never Heard Of

  • Nissan’s Oppama plant is currently operating at just 40 percent of its total capacity.
  • The factory’s break-even point is 80 percent, far above current production levels.
  • Foxconn may build its own EVs at the site, including several of its upcoming models.

After earlier merger talks between Nissan and Honda fell through, a new contender stepped into the spotlight. Foxconn, the Taiwanese electronics giant best known for assembling iPhones, is reportedly in discussions to partner with Nissan on EV production. According to a new report, Nissan may allow Foxconn to use its Oppama plant in Yokosuka, Japan, to build EVs.

Read: Foxconn Will Build EVs In The US But You’ll Never See Its Name On Them

Foxconn has been signaling its automotive ambitions for years now. The company has previewed a range of electric models, including the Model C, Model B, Model E, Model T, and Model V, reflecting a clear push to gain a foothold in the competitive EV industry.

Underused Factory, Uncertain Future

As it stands, Nissan’s Oppama site employs roughly 3,900 people and has been in operation since 1961. It has the capacity to build 240,000 units, but its utilization rate has fallen well below that, reportedly topping out at just 40 percent last year. That’s bad news, particularly since it’s said to have a break-even point of 80 percent.

That underutilization has raised concerns about the plant’s long-term viability. Nissan has announced plans to shut down seven global factories but has yet to name all of them. If Oppama ends up on the chopping block, the closure would be costly.

Beyond laying off thousands of employees, Nissan would need to find a replacement for the facility’s on-site test track, and many nearby suppliers with long-standing ties to the automaker would also be affected.

 Nissan’s Struggling Factory May Soon Build EVs You’ve Never Heard Of

While details of the arrangement are still unclear, Nikkei Asia reports that the two companies could explore a joint venture, with longer-term collaboration on future EV development.

In a statement responding to the report, Nissan asserted “that article is not based on any official announcement from Nissan.” It handed that under the Re:Nissan plan, the company “is currently reviewing the integration and closure of some of its global production sites. However, this process has not yet been concluded beyond the two sites that have been announced so far.”

In response to the report, Nissan clarified that “the article is not based on any official announcement.” The automaker said that under its Re:Nissan plan, the company “is currently reviewing the integration and closure of some of its global production sites. However, this process has not yet been concluded beyond the two sites that have been announced so far.”

Model C Coming to North America

Meanwhile, Foxconn is moving forward with its own EV rollout. Auto News reports that the company plans to begin deliveries of the Model C in North America before the end of this year. A minivan, known as the Model D, is expected to follow in 2027, signaling Foxconn’s broader push into both the consumer and commercial EV spaces.

 Nissan’s Struggling Factory May Soon Build EVs You’ve Never Heard Of

Mazda’s New Electric Sedan Costs Double In Europe Compared To China

  • Mazda 6e lands in Europe with two battery options and premium trim levels.
  • European prices for the 6e are over twice as high as China’s identical EZ-6 sedan.
  • 6e skips the range-extender variant available in China, focusing on full EV power.

Six months after making its first appearance in Europe, Mazda’s new 6e sedan has landed in local showrooms. Known for turning out some of the most stylish vehicles in the mainstream market, Mazda may have raised the bar again with this one. The 6e is arguably the brand’s most visually striking sedan yet, even if it isn’t entirely homegrown. Beneath the sheet metal, it shares its underpinnings with a Chinese-market vehicle.

Get Ready For A Price Shocker

We’ve previously taken a close look at the EZ-6, the Chinese counterpart to the 6e, highlighting its affordability in its home market. There, the fully electric version starts at 159,800 yuan and tops out at 181,800 yuan, which converts to roughly €20,700 to €23,600 or $22,500 to $25,500, depending on the trim level. That makes it a serious bargain compared to what European buyers are asked to pay.

Read: Mazda’s Sportier 6e Sedan Launches In China With A Price Tag That Feels Like A Typo

In Europe, the 6e is sold exclusively as a fully electric sedan, since the range-extender variant offered in China won’t be available here, at least for now. In Germany, pricing begins at €44,900 ($49,000) for the Takumi trim. Stepping up to the Takumi Plus adds features like a panoramic roof, wood interior accents, and partial Nappa leather upholstery, bringing the price to €46,900 ($51,200).

Even accounting for spec differences and local taxes, that’s well over double the starting price of the Chinese version – 2.17 times higher, to be exact. The stark contrast underlines just how aggressively priced the EZ-6 is in China, and how much more European buyers are expected to spend on what is essentially the same car.

For comparison, Tesla’s Model 3 ranges from €39,990 (around $43,600) for the RWD version to €49,990 ($54,500) for the Long Range AWD, and tops out at €58,490 ($63,800) for the Performance model in Germany. Meanwhile, BMW’s i4 eDrive40 Gran Coupe starts at €60,600 (approximately $66,100).

Electric Range and Powertrain Options

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Now reaching dealerships across the region, the Mazda 6e is available in two forms. The standard pure EV features a 68.8 kWh battery, offering a driving range of up to 279 miles (479 km). Power comes from a single rear-mounted electric motor delivering 255 hp (190 kW) and 236 lb-ft (320 Nm) of torque.

While its range won’t set any new benchmarks, it should be more than adequate for typical daily driving unless regular long-distance travel is involved. Those who do can opt for with an 80 kWh battery, which boosts range to 343 miles (552 km).

Typically, EVs with larger battery packs pair them with more powerful motors, but that’s not the case here. In fact, the Long Range model makes slightly less power, with a single rear motor producing 242 hp (180 kW) and the same 236 lb-ft (320 Nm) of torque. Both versions manage a 0–62 mph (0–100 km/h) time under eight seconds and reach a top speed of 109 mph (175 km/h).

To EV owners, of course, charging speed is of more importance than outright performance. The 68.8 kWh version supports peak DC charging speeds of 200 kW, meaning it can get from 10-80 percent in just 22 minutes. Curiously, the Long Range version charges considerably slower as it is capped at a 95 kW peak. That means a 10-80% charge will take roughly 45 minutes, or double the cheaper model.

It’s worth noting that Europe won’t be getting China’s range-extender EZ-6 variant, which features a 1.5-liter setup producing 215 hp (218 PS / 160 kW) to feed the battery.

A Clean and Comfortable Cabin

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Tech specs aside, it’s not just the exterior of the 6e that looks good; Mazda has also done a fine job with its interior. Yes, it will be a little too minimalist for some, but the steering wheel looks great, the floating center console has a premium aesthetic, and the infotainment screen is massive. There’s also a digital instrument cluster, a wireless smartphone charger, ambient lighting, and a mixture of leather and soft-touch Alcantara for the upholstery.

Now, many EVs currently on sale may offer more in certain areas than the 6e but, let’s face it, apart from logic, in many cases emotion plays a big role in choosing your next ride. If the Mazda’s sexy design can’t convince a sufficient number of buyers (who never leave the tarmac) to get it instead of an SUV, then that bodystyle may indeed be consigned to history books after all.

John Halas contributed to this story

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Trump floats high tariffs on Japan, Korea and more countries by Aug. 1

President Donald Trump is displayed on a television screen as traders work on the floor of the New York Stock Exchange on April 7, 2025 in New York City. Markets around the world fell dramatically as global leaders, businesses and economies tried to understand and come to terms with Trump's tariff policy. (Photo by Spencer Platt/Getty Images)

President Donald Trump is displayed on a television screen as traders work on the floor of the New York Stock Exchange on April 7, 2025 in New York City. Markets around the world fell dramatically as global leaders, businesses and economies tried to understand and come to terms with Trump's tariff policy. (Photo by Spencer Platt/Getty Images)

President Donald Trump on Monday threatened tariffs from 25% to 40% on all goods from seven countries, including major U.S. trade partners Japan and South Korea.

The tariffs would go into effect Aug. 1, rather than Wednesday, which was the deadline Trump already extended once from an initial April date, Trump wrote in a series of letters to the countries’ leaders that he posted on his social media platform.

Countries that will see 25% tariffs are Japan, South Korea, Malaysia and Kazakhstan, with South Africa subject to a 30% rate and Laos and Myanmar seeing a 40% tariff rate.

The letters are nearly identical and begin by acknowledging the United States faces a trade deficit with the other country.

“Nevertheless, we have decided to move forward with you, but only with more balanced, and fair, TRADE,” Trump wrote in the letters. “We have had years to discuss our Trading Relationship with (your country), and have concluded that we must move away from these longterm, and very persistent, Trade Deficits.”

The economy-wide tariffs would apply above any sector-specific levies, Trump wrote.

The administration would respond to any effort by the other country to place a reciprocal tariff on the U.S. by setting a new tariff rate on that country that equaled whatever rate it set, plus 25%, Trump said.

Letters on the way

White House press secretary Karoline Leavitt said Monday  about 14 countries would receive similar letters.

“These new rates that will be provided in this correspondence to these foreign leaders will be going out the door within the next month, or deals will be made,” Leavitt said. “Those countries continue to negotiate with the United States. We’ve seen a lot of positive developments in the right direction, but the administration, the president and his trade team want to cut the best deals for the American people and the American worker.”

The administration has used tariffs aggressively to reset trade relationships with every partner. The new threats are part of a push to reach trade deals with individual countries.

Trump set a goal of reaching 90 deals within 90 days of his April 2 announcement, but only two — Vietnam and the U.K. — had materialized by that deadline.

Trump will also sign an executive order further extending to Aug. 1 the deadline for tariffs on every country without a one-to-one trade agreement with the U.S., Leavitt said.

Trump shook the global economy when he imposed wide-reaching levies on nearly every country on April 2. The president walked them back just seven days later, announcing a 90-day pause on staggering tariffs that reached nearly 50% on some major U.S. trading partners and, briefly, 125% on Chinese imports.

The U.S. Court of International Trade struck down Trump’s emergency tariffs May 28. The following day, an appeals court temporarily restored the tariffs and as of Monday they remain in place while the court case is being heard.

Shauneen Miranda contributed to this report.

Honda And Sony’s New EV Has Lost Over $360M Before Even Launching

  • Honda and Sony posted a ¥52 billion ($362 million) loss for their Afeela EV project.
  • Last year, Honda Sony Mobility posted a loss of ¥20.5 billion ($143 million).
  • Analysts worry that this signals the challenges of entering the luxury EV market.

A decade ago, Honda and Sony partnering with each other would have resulted in a Gran Turismo concept at best. However, today it has translated into the sleek-looking Afeela Joint EV project. But there’s one problem: before even selling a single car, Sony Honda Mobility has posted an operating loss of approximately $362 million (¥52 billion).

It’s not just a matter of pre-launch development expenses either. According to recently released financial disclosures, losses more than doubled compared to last year’s ¥20.5 billion deficit, highlighting just how expensive it is to play catch-up in the premium EV market. Set to debut later this year, the Afeela will command a starting price of $89,900, a clear sign of the market positioning the joint venture targets, but also underscoring the challenges of recouping such heavy upfront investments.

A Challenging Entry

Any new car launch is going to incur losses to begin with; that’s practically a given. And with Honda and Sony’s war chest seemingly well-stocked (combined, the two Japanese companies pocketed over ¥2.6 trillion in operating profit last fiscal year), it’s unlikely that the project will put either at financial risk.

Read: Watch Sony Exec Drive Afeela EV With A PlayStation Controller

But the market Afeela will be entering won’t be without its hurdles. Analysts suggest that luxury electric vehicles, while highly attractive to premium buyers, typically come with high development costs: think extensive R&D, complex software integrations, and the pricey task of prototype building. Bloomberg Intelligence analyst Tatsuo Yoshida points out that although the high sticker price of the Afeela aims to offset these expenses, fully covering these substantial costs through sales alone might prove challenging.

Late To The Party

 Honda And Sony’s New EV Has Lost Over $360M Before Even Launching

Adding to the complexity, the Afeela will launch into a market where Tesla, Mercedes-Benz, BMW and other established players already dominate (and that’s without mentioning the Chinese, of course…) , making Sony and Honda’s mission to carve out their own niche all the more difficult. But both companies remain confident, banking on a combination of Honda’s proven engineering expertise and Sony’s strength in software and entertainment tech to win over buyers.

Whether the Afeela becomes a hit or remains an ambitious footnote, the venture highlights one thing clearly: even for giants like Sony and Honda, the transition to electric luxury is neither cheap nor easy.

 Honda And Sony’s New EV Has Lost Over $360M Before Even Launching

Affordable Car Crisis Has EU’s Auto Giants Calling For A Radical New Category

  • Affordable small car sales in Europe have collapsed from 1 million to 100,000 units.
  • Stellantis and Renault want Europe to create a category like Japan’s Kei car segment.
  • John Elkann says over 25 percent of engineers focus only on regulatory compliance.

Affordable city cars are vanishing across Europe, and not in a cool, mysterious way. Their disappearance is being driven by a mess of regulations and a market increasingly tilted toward heavier, pricier vehicles.

Now, the heads of Stellantis and Renault are calling on European regulators to rethink the rules in order to make building small cars viable again. Their proposed fix? Borrow a page from Japan’s playbook and support the development of compact EVs, or as they’ve been dubbed, E-Cars.

Read: Stellantis CEO To Earn More In His First Year Than Most Will In A Lifetime Yet Still Trails Rivals

The decline has been dramatic. Stellantis chairman John Elkann says Europe once saw around 1 million new cars priced under €15,000 (roughly $17,400) sold each year. That number has collapsed to just 100,000. For automakers, the financial incentive to produce such vehicles is fading fast, largely due to European Union regulations that make designing and manufacturing them less and less attractive.

“We are going to face more than 120 new regulations by 2030,” Elkann said. “If you look at our engineers, more than 25 percent just work on compliance, so no value is added. There’s no reason why if Japan has a kei car, which is 40 percent of the market, Europe should not have an E-Car.”

New Regulations Are Needed

Before his unexpected resignation earlier today, Renault CEO Luca de Meo echoed Elkann’s concerns in an interview with Autonews. He called on countries like France, Spain, and Italy to take the lead in reviving the dwindling small-car segment. In his words, “driving around every day in an electric vehicle weighing 2.5 tons is clearly an environmental nonsense,” and he pushed for “the mass development of small cars for urban travel and last-mile deliveries.”

 Affordable Car Crisis Has EU’s Auto Giants Calling For A Radical New Category

“What we are asking for is a differentiated regulation for smaller cars,” de Meo added. “There are too many rules designed for bigger and more expensive cars, which means we can’t make smaller cars in acceptable profitability conditions.”

Also: One Of Europe’s Top Auto Bosses Suddenly Quit Just As Things Start Looking Up

Stellantis, to its credit, still offers a few tiny transport options, including the Citroen Ami, Opel Rocks-e, and Fiat Topolino. All three fall under the EU’s quadricycle category, a niche regulatory loophole that allows ultra-light, low-speed vehicles to exist, barely. But to spark a broader return of small, cheap cars, European lawmakers may need to revisit those definitions entirely, either by tweaking quadricycle regulations or creating a fresh classification for compact EVs.

Researchers from the Gerpisa automotive research center are urging regulators to permit car companies to sell Kei car-like vehicles locally, believing this will help local brands compete with Chinese competition.

 Affordable Car Crisis Has EU’s Auto Giants Calling For A Radical New Category
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