Sony Seeks New Partner To Develop Electric Vehicle Filled With Entertainment

JAKARTA - The Sony Group is looking for a new technology partner to its electric vehicle (EV) project to help them improve its mobility business. Sony, one of the largest electronics companies in Japan, has always aspired to transform the car from just a transportation machine into an entertainment space.

The continued shift to electric cars, which are easier to manufacture than cars with internal combustion engines, is allowing new entrants into manufacturing these vehicles.

At the same time, autonomous driving technology and 5G connectivity are expected to reshape the automotive industry by turning cars into mobile platforms for information and entertainment services.

"We see the risks of abandoning EVs outweigh the challenges it poses," Izumi Kawanishi, the senior general manager who will manage Sony Mobility's new business, said in an interview.

"The upcoming transformation of the car is in some ways very similar to how information technology has turned cell phones into smartphones," he added.

Sony has announced the creation of a new mobility unit at the CES technology show in Las Vegas this month. Sony Chief Executive Kenichiro Yoshida suggested for the first time that the creators of the PlayStation game console would try to turn an EV development project that started two years ago into a money-making venture.

"We understand that speed is important when it comes to decision making," said Kawanishi, who joined the Japanese consumer electronics company as a software engineer in 1986 and heads up the AI Robotics unit that makes Sony's Aibo pet robot.

Kawanishi declined to say whether the final decision on whether to continue the business would come this year.

So far, Sony has built two "Vision" EV prototypes with a factory in Austria owned by Canadian auto parts maker Magna International, which also makes cars for other manufacturers including BMW, Mercedes Benz, and Toyota Motor Corp.

Other members of its Europe-based project include German auto parts maker Bosch, French auto technology company Valeo SE and Hungarian autonomous vehicle start-up AImotive.

To bring an EV to market, Sony will likely have to invest heavily in plant and equipment. Tesla Inc, which delivered its first electric vehicle in 2008, has spent billions of dollars to make the business viable.

Sony also has to face competition from other traditional automakers, such as Toyota, General Motors Co, and Volkswagen AG, which are also spending tens of billions of dollars to beat newcomers to the EV business.

“Sony will select a new partner for its EV project based on the technology they can bring to the project, regardless of their nationality,” Kawanishi said, when asked if Sony would partner with a Chinese company.

Sony is just one of a growing list of tech companies exploring automotive business opportunities. Competition is getting tougher after iPhone maker Apple Inc, South Korea's LG Electronics, Taiwan's Foxconn and China's Alibaba Group are also entering the EV business.