The plan is to combine Honda's expertise in mobility development, technology and sales with Sony's expertise in imaging, communications, networking and entertainment.
The joint venture will develop and design the product, but will use Honda's manufacturing plant, while Sony will develop the mobility services platform.
“Although Sony and Honda are two companies that share many historical and cultural similarities, our areas of technology expertise are very different,” Honda CEO Toshihiro Mbee says in announcing the agreement.
"I believe that this alliance that brings the strengths of our two companies together offers great potential for the future of mobility," he added.
Sony and Honda:
Sony and Honda both had humble beginnings in the 1940s when Japan was rebuilding from the ashes of World War II, and both had charismatic founders.
Honda was founded by Soichiro Honda, an engineer and industrialist famous for breaking with tradition, who began helping out in his father's bicycle repair shop and eventually built Honda into a global powerhouse.
He is often quoted as saying things like: "A diploma or certificate is worthless, learn to work with your own hands, or work for yourself and not for a company."
Sony was founded by Akio Morita, co-writer of The Japan That Can Say No, which endorsed a more assertive and proud Japan, and Masaru Ibuka.
Morita had experience in the market while Ibuca was known for developing products. In the 1970s when Sony was developing the portable audio player and Walkman, some engineers were skeptical. But Morita insisted that people like to listen to music on the go.