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Automaker Honda Teams with Sony in New Venture

Electric Vehicles in Vogue

As automakers embrace a move toward electric vehicles, the need for technological expertise is driving new partnerships. Sony (SONY) and Honda (HMC) plan to form a partnership and establish a company that will build electric vehicles. They anticipate offering their first vehicle in 2025.

Sony is looking to redesign the smartphone chips they manufacture to be used in cars. Honda is implementing plans to become an exclusively electric vehicle company. The company plans to move completely out of gas-fueled cars by 2040.

Honda uses partnerships to accelerate move to electrics

The joint venture will marry Sony’s technological expertise with Honda’s automaking prowess to develop a line of electric vehicles. Honda will continue to manufacture the cars at its existing facilities and Sony will contribute the technology. Sony plans to establish a new company, Sony Mobility, to focus on the electric vehicle market.

Honda is also currently working with General Motors (GM) in another joint venture with the mission to develop electric cars.

The market for electric vehicles is exploding

Globally, automakers are scrambling to grab market share in the hot electric car sector. Technology companies are seizing the opportunity to carve out their niche in the auto space. In China, tech companies Baidu and Xiaomi have moved into the sector. Apple (AAPL) is also currently developing a self-driving car, which may be released as soon as 2025.

Advanced technology in electric cars creates opportunities for both technology companies and automakers alike, including Honda, General Motors, Sony and Apple. The trend has some investors wondering: are today’s gas-fueled cars the dinosaurs of the future?

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ABOUT Meg Richardson Meg Richardson is a writer specializing in markets, technology, and personal finance. She loves breaking down seemingly complex ideas and making them readable and interesting for everyone. She holds an MFA in writing from Columbia University. When she is not writing about finance, she enjoys running in Central Park and drawing cartoons.

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