Development of Solar Car Halted: Sono Drops the Sion

The Munich-based provider of solar mobility solutions Sono Group N.V. has announced that it will restructure its business model and focus exclusively on retrofitting and integrating solar technology into vehicles from third-party manufacturers. At the same time, the company has terminated its Sion program with immediate effect. Originally, the startup founded in 2016 intended to start series production at Valmet in Finland this year and deliver the first vehicles in the first quarter of 2024. The young entrepreneurs from Munich also lamented the lack of support from politics. One must ask whether "innovations in the solar and automotive sectors are even desired in Germany," co-founder Jona Christians complained. Reportedly, the founders were negotiating with potential investors until Thursday evening, but the talks failed.

"The restructuring is a crucial step in the development of Sono Motors. Although we had to terminate the Sion program, our original heart project, shifting our entire focus to B2B solar solutions allows us to continue developing innovative products in the solar industry. Despite more than 45,000 reservations and pre-orders for the Sion, we were forced to react to the ongoing instability of the financial markets and streamline our business. This decision was not easy for us," said Laurin Hahn, co-founder and CEO of Sono Motors, also pointing out that the Sion was not placed in the high-margin luxury segment, but the budget segment.

The achievements within the Sion's series validation program with 18 vehicles were, according to the company, proof that the concept of a solar electric vehicle (SEV) works. Shortly before entering pre-series production, the vehicle was poised to revolutionize solar technology in the automotive industry, the Sono managers regret. Although the Sion program has been canceled, the company will continue to use its patented technologies for its ongoing retrofitting and integration business. Additionally, the manufacturer intends to sell the Sion program so that the SEV might be built by another manufacturer with Sono's solar technology.

Repayment Plan for Reservations

For Sion reservations made before the #savesion campaign, the company has a repayment plan. This plan entails repaying in several installments plus a bonus over the next two years, starting with the first installment in May 2023. The manufacturer will not collect any pledged amounts made since December 8, 2022, as part of the #savesion campaign.

Following the company's decision to cancel the Sion program, the startup plans to lay off about 300 of its 410 employees. In this context, Thomas Hausch has decided to step down from his role as COO. The former head of Nissan Germany will continue to support the company during the restructuring. "Without Thomas's professional dedication and outstanding personality, our Sion program would not have come this far. We are very grateful to him for his previous efforts and his support of our future plans," said Laurin Hahn.

"Unfortunately, my task at Sono Motors to build the first affordable solar electric car is coming to an end. I am personally convinced that sooner or later we will see many SEVs on the road, even without the Sion. The company and the founders will continue to pursue the vision of a world without fossil fuels, even with the new focus. This makes me optimistic about the future," commented Hausch.

Focus on Mobile Solar Solutions

The company's solar solutions, consisting of hardware such as power electronics and software, are already being used by 23 business partners in Europe, Asia, and the USA and tested in a variety of vehicles, including cars from other OEMs, buses, refrigerated vehicles, and motorhomes, the company promotes its second business line. Fleet operators can benefit from integrating solar technology by saving fuel, costs, and CO2 and contributing to the fight against climate change through these reductions in greenhouse gas emissions.

Cancelling the Sion program reflects the company's decision to focus on a less capital-intensive business model given the poor conditions in the capital market – about 90% of the funding required for 2023 was caused by the Sion program. Since the Sion program was resource-intensive, the company is now implementing significant cost-saving measures.

Scaling the Technology Planned

The provider is currently working as a development partner and supplier with companies in ten markets in Europe, Asia, and the USA, including Mitsubishi Europe, CHEREAU, and the two Volkswagen subsidiaries Scania and MAN Truck & Bus. In the future, Sono Motors intends to focus specifically on buses and cars from other OEMs. The company will now further scale its technology and begin with the planned introduction of the next generation of the "Solar Bus Kit" – a mass-market retrofit solution for more environmentally friendly public transport – in the second quarter of 2023. Talks with potential investors will now focus exclusively on the solar business.

EU Funding Highlights the Potential

The potential of Sono Motors' technology is underlined not only by the company's partnerships but also by the European Union. In January, Sono Motors secured funding of €1.46 million from the European Climate, Infrastructure and Environment Executive Agency ("CINEA") to advance the development of the company's solar technology ("SEAMLESS-PV" project). Sono Motors also announced that it now has a total of 52 registered or granted patents, 42 of which concern the company's proprietary solar technology. This represents a significant increase compared to ten patents that were registered or granted at the time of the company's IPO in November 2021. The number of registered or granted patents also includes patents that relate to the same innovation and have been registered in different areas.

What Does This Mean?

Unfortunately, it had become apparent that funding an automotive development is almost impossible for a startup. Sono Motors at least tried to develop an "official car for a better world" – and the unpretentious, pragmatic, and focused concept for people who don't want to "dance around the golden calf" but seek an efficient, environmentally and human-friendly means of transport at an affordable price is still impressive.

Combined with the range-boosting solar technology, the sharing concept embedded in its own app, the V2G technology thought of from the beginning, consistent recycling and raw material concept as well as sustainable and "right-sized" instead of "oversized" battery and charging technology, it would have made a fine automobile in terms of the product.

But industrialization is a whole different story, and many far more financially powerful companies have already cut their teeth on it. Even Tesla once went through the "production hell," as Elon Musk bluntly put it, before Model 3 scaled in larger quantities.

The founders are not entirely wrong with their criticism of politics either: considering the billions of euros with which the automotive industry was supported during the short-time work phase, the funds flowing into research projects at volume manufacturers who are very adept at acquiring funding, not to mention the years of indirect support for outdated technologies or hopelessly oversized vehicle concepts through company car, diesel or tax privileges, commuter allowances or PHEV subsidies or the settlement incentives for notable US automakers who would never have come to Grünheide without ample government money.

Quite honestly: half a billion euros in tax money would have been better invested in helping a German manufacturer with a revolutionary idea get on its feet – site promotion in the best sense.

Therefore, a personal word at the end: We at VM have accompanied the unconventional and environmentally driven project with great sympathy from the beginning, almost from the garage, when a disassembled Renault Twingo stood before us. We therefore regret all the more that it will not work out with the "Better-Mobil from Bavaria". And we hope that the second pillar, which the creators wisely established years ago, will at least carry parts of the company into the future. The idea and the vision certainly deserve it. Today, not only the Sion "wears black," but an entire vision of "sustainable auto-mobility."