Sony, an iconic electronics company known for making video game consoles and televisions, is preparing to move into electric vehicles.
Its EV program started two years ago, but the company is now attracting partners who can help it develop and build roadworthy cars. It's not yet clear how far Sony will go with these efforts, but the pieces are coming together for the company to launch a competitive electric vehicle business.
For Sony, the road to a viable electric vehicle is uphill. The company faces all the "normal" challenges and obstacles to building a successful automotive brand, including ensuring a functioning supply chain, manufacturing, testing and more.
All of this is in addition to the design phase and does not include the hundreds of additional employees that Sony will need to hire to further its EV efforts.
Sure, the company could turn to contract manufacturing and other outsourcing solutions, but sustainable growth will eventually require Sony to switch to in-house production and development.
A risk to take?
More headwinds lie ahead in the competitive landscape, where Sony will take on all the traditional automakers, as well as a number of well-funded startups, some of which have already started delivering new electric vehicles to customers.
That said, Sony has two prototypes and has already partnered with Magna International, which has a factory in Austria. Bosch and other major auto parts suppliers are on board, so many of the required parts are already in place or on the move.
Why would Sony want to get into such a tough business? The PlayStation maker sees an opportunity to increase revenue through subscription content services and other pay-per-use features that can be built into cars.
The company also acknowledges that ignoring EVs is a risk, as its executives believe EVs are transforming the auto industry in the same way the iPhone did cell phones more than a decade ago.
Via CNBC/Reuters