Let the hybrid price wars begin.

A few days after Honda announced pricing for its new Insight hybrid in the United States, making it the first sub-$20,000 hybrid on the market (at least before destination charges), a report has come out of Japan that Toyota has plans for a cheap hybrid of its own.

According to the Nikkei business daily in Japan, as reported by Reuters, Toyota plans to develop a new hybrid that will sell for less than $20,510. It could be priced 20 to 30 percent cheaper than the Prius, and come to market as early as 2011.

Earlier this week, Honda said the 2010 Insight would be priced at $19,800 in the United States, or $20,470 including destination charges, which is nearly $2,250 cheaper than the outgoing Toyota Prius; pricing for the new Prius, due this spring, has not been announced. In Japan, the Insight costs around $20,000, and demand has been so overwhelming that Honda has increased production beyond the original 200,000 it had planned to make over the next year.

Even though the Insight gets far fewer miles per gallon than the new Prius, Honda is counting on customers preferring to pay less up front for a hybrid. Its new ad campaign, which kicks off on Monday, is called “Hybrid for Everyone.”

source : nytimes.com

Honda’s much-anticipated Prius fighter may double as a recession fighter.

The Japanese automaker said today that when the 2010 Honda Insight hybrid hits dealer lots in two weeks, it will carry a base price of $19,800. That puts an end to months of speculation over just how much less expensive the new Honda would be than the Toyota Prius, currently the top-selling hybrid in the U.S.

At under twenty grand, the Insight will be the least expensive new hybrid available in the country; even the more feature-laden EX version of the Insight, which includes alloy wheels and paddle shifters, will be under the Prius’ $22,000 starting sticker. By pricing it so low — almost $4,000 less than its own Civic hybrid — yet delivering a car that looks and behaves remarkably similar to the current Prius, Honda is making a risky bet that cost-conscious consumers will be lured to choose its hybrids over non-hybrid alternatives. Meanwhile, with a new far more fuel-efficient 2010 Prius set to hit showrooms in June, the Insight could lose out on buyers who care more about green (as in ecology) than green (as in dough).

Honda apparently has its eyes trained on a broader swath of customers. The Insight, said Dick Colliver, executive vice president for Honda’s U.S. sales arm, “brings the cost of entry for hybrid technology within closer reach of an entirely new car-shopping audience.” The automaker hopes people who otherwise wouldn’t have considered a hybrid will choose the Insight because it’s cheaper to buy and operate than comparable vehicles.

The Insight first went on sale in Japan last month, where it sells for 1.89 million yen ($19,260). So far, 18,000 have been ordered, according to Honda, and 4,906 were sold and registered in February, making it the top-selling hybrid in Japan for the month. The company has said it hopes to sell 200,000 of the vehicles globally each year, with about 90,000 selling in the U.S. during the first 12 months of sales. By comparison, Toyota sold 241,405 of the Prius models in the U.S. last year.

The down economy could put a dent in Honda’s sales plans, however. The value of used hybrids, an important indicator of demand for the vehicles, has slumped considerably as consumers turn to cheaper options. According to research firm Kelley Blue Book, used hybrid prices are down about 25% since last summer, more than any other category of vehicle, and fell 2.5% in February alone.

And while the Insight measures up pretty well against the Prius and even more expensive hybrids on cost, it still is quite a bit higher than fairly efficient non-hybrid competitors such as the Toyota Yaris ($12,205 starting price) and Nissan Versa ($9,990).

That’s a particularly sensitive point considering the relatively low price of gasoline of late. “Demand for fuel efficient vehicles has dropped significantly as more and more consumers base their purchase decision on vehicle transaction price as opposed to fuel economy,” said Juan Flores, director of vehicle valuation at Kelley Blue Book.

When gas is costly, hybrids can more easily justify their cost differential in gas savings. But with the national average for a gallon of go juice at $1.94 (down from over $4 last summer), that savings payoff take a lot longer.

The Nissan Versa, for example, gets 27 mpg in city driving and 33 mpg on the highway, and it costs $9,810 less than the Insight. At current gas price levels, according to one of the niftiest of the many nifty hybrid cost calculators available online, the Honda Insight, which gets 40 mpg city and 43 highway, would save drivers about $315 a year compared to the Versa based on normal driving. That means it will pay for itself in a mere 31 years, or about three times the expected life of the vehicle.

Consumers clearly don’t base all their car-buying decisions on price alone. If they did, it would be Kia, not Toyota, atop the global sales heap, and BMW and Mercedes-Benz wouldn’t have a leg to stand on.

Still, by framing the Insight’s marketing around rational price concerns rather than emotional hot buttons like saving the planet — while at the same time not making the vehicle as efficient as the 2009 Prius (48 city/45 highway/46 combined), much less the upcoming 2010 Prius (Toyota said it will get 50 mpg combined) — Honda seems to be locking its new vehicle into a mathematical computation it can never win.

- HONDA MOTOR CO. (TSE:7267) announced Wednesday that by the end of January it had sold more than 300,000 hybrid vehicles worldwide, reaching the milestone less than 10 years after introducing its Insight hybrid domestically in November 1999. The automaker reported that cumulative worldwide sales of hybrid vehicles stood at 300,740 as of January 31.

* In addition to the Insight, it also sells hybrid versions of its Civic and Accord.

* The Civic Hybrid has been the best seller, with sales totaling 255,249 vehicles.

Honda Insight Hybrid makes EU debut
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February 5, 2009 – ASIMO, Honda’s advanced humanoid robot, will help launch the all new Insight Hybrid at the 2009 Geneva Motor Show.

The new Insight, which will makes its European debut at the Show, has been designed to offer a practical five-seat family car at an affordable price with excellent fuel economy and low CO2 and other emissions.

Honda’s latest hybrid vehicle revives the Insight nameplate which was first used in 1999. It also marks a return for Honda to producing hybrids in a dedicated aerodynamic body, designed to optimize the performance of the efficient petrol-electric hybrid drivetrain.

The Insight combines an optimised 1.3 liter i-VTEC engine with a compact thin electric motor. This electric motor gives the engine assistance when increased performance is required and acts as a generator during deceleration and braking. It also allows electric only operation in some slow and medium speed conditions.

The Insight has been designed to give good real world emission and fuel economy figures. Its key element is the Eco Assist system that is fitted as standard. The upper instrument cluster where the speedometer is sited, features a color changing ambient light that illuminates green when driving ecologically, blue/green when the car is being driven acceptably and blue when driving with less regard for economy.

The ambient lighting of the speedometer combines with a bar diagram which is more than a simple instantaneous economy meter. The display in the center of the rev counter shows how aggressively the driver is accelerating or braking and encourages the driver to stay towards the middle with lighter more progressive use of the brake and accelerator pedals.

To chart progress, during each journey leaves will appear on the bare stems of the plant icons on the center meter if the driver is matching the ecological driving conditions ideal. Should their driving go outside of these parameters for a length of time then the plants will wilt. At the end of each journey the driver is given a score which they can build up over time and gradually they will be rewarded with trophy symbols for continued good driving.

The Insight has been designed to offer a practical family car at an affordable price with excellent fuel economy and low CO2 and other emissions. The Insight gives seating for five and a boot capacity of 408 liters with the seats up. The repackaging of the IPU and batteries means the Insight has seats which fold almost flat, increasing the boot capacity to 1017 liters*.

The practical interior is complimented by an attractively styled and aerodynamically profiled body, which helps the Insight to achieve 101 g/km CO2 emissions and 4.4l/100km fuel consumption under the EU combined test procedures.

The Insight will go on sale in Europe from the end of March 2009 and pricing information will be announced at the time of the Geneva Motor Show.

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Honda Motor Co., Ltd. announced that the all-new Insight hybrid vehicle will go on sale in Japan on Friday, February 6, 2009. A five-door, five-passenger compact hatchback starting at an affordable ¥1,890,000*1, the Insight features a lightweight, compact hybrid system that combines exceptional fuel economy with fun-to-drive performance.

Designed to set the standard for compact cars for a new era, the Insight combines outstanding environmental performance with fun, responsive driving and efficient, versatile packaging. The all-new Honda Insight was developed with the goal to provide these attributes in a car that is affordable to more customers.

Offering customers exceptional fuel economy, the Insight features a newly developed hybrid system including a 1.3-liter i-VTEC engine and Honda’s proprietary Integrated Motor Assist (IMA). To further support fuel-efficient driving, the Insight features the Ecological Drive Assist System (Eco Assist) as standard equipment on all models.
* The name Insight was chosen to denote that this new vehicle provides “insight” into a new era in which hybrid vehicles come within reach of most car buyers.
*1 Manufacturer’s suggested retail price including consumption tax for the G-type

< Exceptional Environmental Performance >
Featuring a 1.3-liter i-VTEC engine and lightweight, compact Integrated Motor Assist (IMA), the Insight hybrid system offers exceptional fuel economy: 26 km/L in JC08 mode and 30 km/L in 10•15 mode.*2
Designed to reduce air flow resistance and enhance fuel efficiency, the aerodynamic body achieves a world-leading coefficient of drag of 0.28.*3
Standard on all models, the new Ecological Drive Assist System (Eco Assist) is designed to help drivers further enhance fuel efficiency.

< Efficient, Versatile Packaging>
Packaging features a compact body, low vehicle height and a comfortable interior with superior utility.
The rear cargo area is spacious and easy to use.

< Fun, Comfortable Driving>
In the city and on the highway, the Insight offers fun, relaxed daily driving and a comfortable ride.

< Affordable Pricing >
Cost reduction was achieved through enhanced efficiency of the IMA system and the use of parts shared with other Honda automobiles.
Increased efficiency of production processes was achieved.

*2 G-type and L-type
*3 Five-passenger production automobiles (Honda calculations)

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G Model 1,890,000 Yen
L Model 2,050,000 Yen
LS Model 2,210,000 Yen

Bodysize :

4,390 / 1,695 / 1,425 (mm)

Wheelbase : 2550 mm.

Fuel efficiency in 10-15 mode = 30 km/litre
Co2 emission = 77 g/100 km.

Features common to all Japanese Insights:

• Ecological Drive Assist System
• multi-information display
• full-auto air conditioner
• projector-style headlights
• remote-control body-colored external mirrors
• tinted rear windows
• security alarm
• immobilizer (ignition system verifies chip in key)
• 15-inch steel wheels
• solar-heat-reducing/noise-reducing glass
• active front head-rests
• tilt/telescoping steering wheel
• seat-height adjuster
• three rear-seat head rests
• flat-tire repair kit (the new Insight carries no spare tire)

The L model adds:

• high-intensity discharge headlights with auto light control
• turn signals in the external mirrors
• leather steering wheel
• rear speakers
• front/rear arm rests
• variable-speed windshield wiper
• map light and luggage-area light
• driver’s seat back pocket

The LS model adds:

• 16-inch aluminum wheels
• Vehicle Stability Assist (VSA)
• front fog lights
• 7-speed paddle shifters
• sun-shade tinted windshield

Optional accessories:

• navigation system with 7-inch screen and hard disk drive (this system may also display additional fuel economy information and in Japan it may include a TV tuner and ECT, an electronic highway toll payment system)
• Honda smart key system
• side-curtain air bags
• 15-inch aluminum wheel for L class
• High-intensity discharge headlights
• comfort view package plus rear window wiper

Body color options:

• Spectrum while pearl (also a Civic hybrid color)
• Milano red (also a Fit color)
• Premium deep violet pearl (also a Jazz color, but not a US Honda color)
• Crystal black pearl (also an Accord, Civic, and Fit color)
• Polished metal metallic (also an Accord and Civic color)
• Alabaster silver metallic (also an Accord and Civic color)
• Brilliant sky metallic (also a Jazz color, but not a US Honda color)

Interior color options:

• Blue
• Warm gray

Other data:

• Length 4390 mm (172.8 inches)
• Width 1695 mm (66.7 inches)
• Height 1425 mm (56.1 inches)
• Wheelbase 2550 mm (100.4 inches)
• Weight 1180 kilograms (2601.5 lbs)
• Minimum turning radius: 5 meters (16.4 feet)
• Engine type: inline 1339 cc SOHC 4-cylinder
• Engine generates 88 horsepower @5800rpm and 12.3 kgm torque @4500rpm
• IMA motor generates 14 horsepower @1500rpm and 9.4 kgm torque @500rpm
• Japanese 10.15 mode fuel consumption test: 30.0 kilometers per liter (which is greater than 70 mpg, but the EPA tests will return lower numbers; the Toyota Prius rates 35.5 km/l or greater than 83 mpg in this test.)

source:insightman

2009 Honda Insight Hybrid to Make World Debut at the North American International Auto Show

The all-new 2009 Honda Insight hybrid will make its world debut in January at the North American International Auto Show in Detroit. The five-passenger, five-door Insight is expected to be the most affordable hybrid car available when it goes on sale in the spring of 2009.

The Insight is expected to have annual global sales of 200,000 units per year – approximately 100,000 in North America – and will utilize a new interactive, driver-focused fuel economy enhancement technology named the Ecological Drive Assist System (Eco Assist™).

A leader in the development of cleaner, more fuel-efficient mobility products, Honda introduced to market the first mass produced low-emission gasoline vehicles; America’s first commercially produced gas-electric hybrid car and the world’s first EPA-certified hydrogen fuel-cell vehicle, the FCX. In 2007, Honda was named “greenest automaker” by the Union of Concerned Scientists for the fourth straight time.

The thrust of the new Honda Insight hybrid — which debuted in Paris this week as a near-production concept — is to “bring hybrid vehicles into a price bracket where a broader range of people can afford them,” says the press materials. Cheaper, in other words. The current estimate is that the Insight — powered by a 1.3-liter gas engine and Integrated Motor Assist, good for about 45 mpg, on average — will cost about $20,000, though final pricing will be announced closer to the on-sale date next spring.

It must have taken a heroic effort for Honda to hit that price point. According to the company, major savings had to be realized in the design and manufacturing of the IMA and other hybrid components (like the battery). Tankers of midnight oil must have been docked right outside Honda’s R&D center.

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