Sonor Motors has formally decided to end the Sion passenger car program on February 24 following the seems-to-be unsuccessful crowdfunding drive #SaveSion. Per the press release, the German solar EV startup diverted its business concept from EV production to solely solar tech installation onto third-party vehicles.
“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.”
Sono Motors CEO Laurin Hahn
Why is this necessary?
Sonor Motors stated that this major decision will enable the company “to focus on a capital-light business model in light of depressed capital market conditions.”
It must also be noted that the Sion Solar EV project put a significant financial strain on the company. In fact, it generated 90% of the projected budget requirements for Sono Motors for 2023.
That said, the move is indeed necessary for Sonor Motors to focus its efforts and resources on its more successful business unit, Sono Solar tech. It has 23 B2B customers throughout Europe, Asia, and the US, which has proven successful for the startup.
Sono to lay off about 300 workers
Sono Motors has also been prompted to consider terminating around 300 employees amid its cost reduction program. In light of this, COO Thomas Hausch will also leave his executive position.
“Without Thomas’ professional dedication and outstanding character, our Sion program would have not made it this far. We are so thankful for his past and future championing of our mission.”
Sono Motors CEO Laurin Hahn
As for Sono Sion’s accumulated 45,000 paid reservations, the startup will reimburse the customers in several installments, including a bonus for the following two years.
Sono plans to sell the Sion Solar program
Another interesting part of the announcement is Sono’s plan to sell the Sion program. It stated that Sion’s 18-vehicle series-validation program was successful, implying that the concept works.
Furthermore, the company has also indicated that it intends to keep using the patented technology created for its active integration and retrofit operations.
Now, the company will prioritize the launch of its Solar Bus Kit, an innovative retrofit solution for sustainable public transportation, in Q2 2023. Apart from that, Sono also offers power electronics and software solar solution services.
Indeed, this announcement is another sad tale for solar EVs, indicating that bringing the tech to the market is nearly impossible without billions in capital. Just a few days ago, another solar startup, Lightyear, also declared bankruptcy, yet decided to pursue the Lightyear 2 production under a new company.
