Lawsuit Filed Against Sony Honda for Their Sales Approach of Afeela Electric Vehicle
In the ever-evolving world of automotive manufacturing, the shift towards electric vehicles (EVs) and SUVs has been a prominent trend. Volkswagen, for instance, has pivoted its US lineup towards SUVs over the last decade. This transformation, however, is not without its challenges, as evidenced by the ongoing conflict between automakers and franchised dealers.
One such example is Sony Honda Mobility, a company that, being part of a company with an existing retail network, is not exempt from this conflict. The company's upcoming EV, the Afeela 1, is set to challenge the status quo with its direct sales approach.
The Afeela 1, priced at $102,990, boasts a 300-mile range from a 91-kWh battery pack and a peak charging rate of 150 kW. However, its direct sales strategy has drawn the ire of franchised dealers in California, who have asked the Los Angeles County Superior Court to bar SHM from accepting reservations for the upcoming EV.
The California New Car Dealers Association President, Brian Maas, has expressed concerns that this move strips vital consumer protections like local service support, transparent pricing, and warranty assistance. Afeela's vehicles, according to Maas, will sit within their own brand, separate from the Honda and Acura marques.
The Afeela 1's self-driving features are only included for three years, and, assuming the law remains the same, it won't be able to legally deploy these features at launch. This is in contrast to Tesla, which, not being an established automaker before it began selling cars directly, has been able to sidestep laws protecting franchises in some states.
The conflict between franchisees and automakers pursuing direct sales has been ongoing since Tesla first began making headway in the market. Scout Motors, a member of the Volkswagen Group, has also faced legal trouble for its direct sales strategy.
Despite the legal challenges, Sony Honda Mobility expects to begin first deliveries of its Afeela 1 electric sedan in California next spring. Interested Californians can still reserve the Afeela 1 for $200 on the company's website. A cheaper version of the Afeela 1 won't be available until 2027, even after the initial model.
The Afeela 1 is North America's first example of a consumer electronics company selling cars. It's a bold move that gambles on a clientele willing to pay a high price for expanded self-driving capabilities. As the automotive industry continues to evolve, it's clear that the debate over direct sales versus franchised dealerships will remain a contentious issue.
