Sono Motors declares bankruptcy for the second time

Sono Motors GmbH has ended its operational activity by initiating insolvency proceedings on the past 31 July. This marks the end of a decade-long journey for this German company which, at the time, generated enormous global expectation with the Sion, a city car powered by solar energy. To get out of this difficult situation, the company is now putting the Sono Solar brand up for sale, along with all its intellectual property and its power electronics.

Formal insolvency proceedings were announced in Munich this Monday. The company had held intense talks with potential investors until the very last moment, but failed to secure viable financing. The administrators have finally made the technical core of the German firm available to potential buyers in three packages: the solar integration of the Sion, the power electronics (including the solar charge controller for vehicles) and the solar data services. The package includes hardware components and technical documentation.

The main value, however, does not lie in the photovoltaic module itself, but in the electronics that accompany it. The charge controller balances the strong voltage variations of the panels with the vehicle’s electrical system and continuously calculates the maximum power point. On a fixed rooftop the task is simple; on a truck travelling under bridges, between buildings or along tree-lined avenues, light and shade change in milliseconds. Partial shading can drastically reduce the performance of a poorly designed system. Sono Motors spent years solving precisely this problem.

Who might be interested in buying?

The practical use of all this technology now focuses more on powering auxiliary systems than on propulsion. Refrigeration units, stationary air conditioning and the onboard electrical network of buses or refrigerated transport vehicles operate even when the vehicle is stationary. Covering part of that demand with solar energy makes it possible to save diesel or, in purely electric vehicles, extend range without increasing the size of the battery. According to the company itself, Sono Solar was a pioneer in Germany in obtaining a general operating approval for solar integration in commercial vehicles. That authorisation is part of the package and is probably more valuable to a buyer than any patent.

This is the brand’s second collapse. Sono Motors was founded in 2016 with the promise of bringing to market a vehicle that could be charged while driving. The Sion was partly financed through crowdfunding and reservations from prospective customers, most of whom ended up losing their money. In February 2023 the vehicle programme was cancelled and in May a protective shield procedure was requested. Of roughly 400 employees, around 300 were dismissed, and shortly afterwards another 48. When negotiations with investors stalled in November 2023, the remaining staff were also set to be laid off. At the end of the month a turnaround came: agreements were signed with the New York hedge fund Yorkville. Reinstatement was offered to those who had been dismissed, and most accepted. The company refocused its activity on vehicle manufacturers and fleets. The founders withdrew and a new management team took over, which remains in place to this day.