End February 2023 Sono Motors has discontinued development of the Sion solar car. 250 employees were laid off. The money paid in advance by customers for reservations – around 50 million euros – was to be refunded as part of a repayment plan. After failing to find a source of financing for the repayment, the company had to file a Application for protective shield under insolvency law Meanwhile, the US-listed parent company Sono Group NV has filed an application for self-administration with the responsible Munich District Court.
At the end of November, the Munich-based company announced the signing of a conditional investment deal with YA II PN, Ltd. ('Yorkville'), which should enable the company to restructure, terminate the self-administration proceedings that have been ongoing since May 2023, and continue its solar integration business. The closing of the Yorkville agreements was expected for the end of January 2024 – which has now occurred. The Yorkville investment was completed following the fulfillment of the conditions precedent, including the court approval of the plan and the withdrawal of Sono Group NV's application for preliminary self-administration proceedings. The first tranche of the Yorkville investment was funded on February 6, 2024.
The remaining formal measures required for Sono Motors to exit its insolvency proceedings under self-administration are expected to be completed by February 29, 2024. Since the beginning of the year, the Munich-based company has been implementing its new business model and corporate structure.
Focus on Solar Bus Kit
The reorientation of Sono Motors is being led by a new management team, including the recently appointed managing directors Jan Schiermeister and Denis Azhar. Both are long-standing employees of Sono Motors and bring expertise in the bus, truck, and automotive industries. This goes hand in hand with the Munich-based company's new direction: the development and delivery of the Solar Bus Kit, the retrofit product for solar integration specifically developed for buses, as well as the company's proprietary solar power electronics, which will enable solar integration for a wide range of vehicles, including refrigerated vehicles, electric vans, and electric trucks.
"We have developed our new business model and corporate structure with a clear focus: We are concentrating on our Solar Bus Kit while continuing to develop some of our other unique selling points such as our 'MCU' (Maximum Power Point Tracking Central Unit) – our highly efficient solar power electronics,"
so Jan Schiermeister and Denis Azhar in a joint statement.
"We look forward to working with our strong, motivated, and dedicated team, as well as with our customers and partners, to realize our mission of bringing solar technology to every vehicle. We are grateful that our community voted in favor of the bankruptcy plan, giving us a chance to realize this mission."
First reseller contract signed
With this clear focus, Sono Motors aims to expand its market position in the field of solar mobility. To achieve this goal, the Munich-based company has signed an agreement with Nova-Papír of Hungary, which will serve as the company's first reseller for the Solar Bus Kit – with an initial sales target of 81 kits by the end of 2025. The company expects that distribution through Nova-Papír will lead to market entry in Hungary and open up Eastern Europe as a promising potential market for the company's solar technology. In the future, Sono Motors plans to sign further agreements with resellers in various countries.
