Sono Motors kills Sion Solar EV project. Here's why
- Sono Motors has scrapped its Sion solar EV project and said that this program is up for sale.
Remember the Sion solar EV? Germany's Sono Motors developed the pure electric MPV that runs on solar energy. The EV startup claims to have killed the project, and this program is now up for sale. Moving ahead, Sono Motors wants to focus on a new business model, where it will exclusively retrofit and integrate its solar technology onto third-party vehicles.
With the project scrapped, what happens with the 45,000 paid reservations for the Sono Sion? The EV company has announced a payback plan to reimburse the consumers who booked the EV. The company will pay back the booking amount to the consumers in various instalments, which will include a bonus over the next two years.
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The EV startup, in a statement, has revealed that it had to decide to scrap the project because of a lack of funding issue. It said that the termination of the Sion solar EV project reflects its decision to focus on a capital-light business model in light of depressed capital market conditions. The startup further said that the Sion solar EV put a heavy burden on its budget since an estimated 90 per cent of the funding required for 2023 was generated by the solar passenger car project.
It further stated that Sono is now implementing an effective cost-cutting program given the resource-intensive nature of the Sion program, including personnel requirements. Sono Motors plans to lay off approximately 300 employees as part of this decision, revealed the company.
Laurin Hahn, co-founder and CEO of Sono Motors, said that the company would continue to use its patented technology for the Sion EV in other vehicles. However, it won't manufacture an entire vehicle anymore. Instead, it plans to sell the program to a potential buyer, which means we may see some legacy automaker or another EV startup coming up with the project. "Even though we had to terminate our original passion project, the Sion program, shifting our entire focus to business-to-business solar solutions, provides us with an opportunity to continue to create innovative products in the solar space. It was a difficult decision, and despite more than 45,000 reservations and pre-orders for the Sion, we were compelled to react to the ongoing financial market instability and streamline our business," said Sono CEO.
