Honda Insight hybrid to be cheaper, if dealers cooperate

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.

However, all that hard work -- and the neat marketing and sales strategy designed to undercut Prius -- will amount to little if Honda dealers tag on thousands of dollars more in dealer markups and price premiums, as they have been notoriously doing with the Fit and Civic Hybrid. "We don't like it whenever premiums are added," says company spokesman Kurt Antonius. "But it's driven by supply and demand. We don't condone it but we can't control it."

Perhaps not, but Honda of America could probably, oh, let's say, de-incentivize the practice, and considering that the low entry price of the new Insight hybrid is the whole point, I suspect they probably will.

More about the car: Yes, it looks vaguely like a Prius. "We would say it looks more like the Clarity," says Antonius, referring to Honda's sleek and awesome hydrogen-powered car. I would say that the Prius, the GM Volt and the Honda Insight all resemble one another as a consequence of aerodynamics and engineering constraints that nominalize design. In other words, if you want a car of a certain size to carry five passengers and some luggage, and you want it to be as aerodynamically efficient as possible, there's only so much you can do about styling.

Unlike the Prius, the Insight does not move under electric power alone. Honda has long believed the tradeoffs of weight and cost don't justify electric-only propulsion. The company expects overall mileage to be like that of the Civic Hybrid.

Honda expects to make 200,000 Insights per year for the world market, 100,000 of them destined for the U.S.

-- Dan Neil

Photo: Honda

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Comments

[ben]

Am I supposed to be impressed with 45 MPG?

It's really not that impressive considering that it has a very small engine og 1.3 liters

[Bert Juneau]

Unions aren't the problem of the big three - Japanese labor is more expensive than even union wages.

The big three suffer because they put all their eggs in the petroleum basket.

The Japanese produced the big huge SUV's too - but they had this play in their back pocket.

The big three think they can scream and shout their way out of bankruptcy.

[WendyM.]

Honda tries to rein in its dealers? Since what era? Since the 80's, Honda dealers have lead the charge in egregious add ons. Of course, Honda was implicated in the allocation scandal when it stuck dealers with essentially unsaleable cars unless the dealers paid kickbacks.

On another note, GM struggles mightily, and brings forth the Volt. Promised at $30k, due to be delivered at $40k. Looks like any other GM car you rent from enterprise. Way to go GM. Don't close your eyes when you swing at the ball.

[tonyE]

We get 43 mpg on our Civic Hybrid driving it like maniacs.... that is, like everybody else on the freeway.

It doesn't stick out like hybrid - well it does have HOV stickers- with none of the "look at me". It has NAVI and auto temp control and it handles like a CIvic with hard tires... which is to say it leaves Toyotas in the dust when the road t turns curvy.

So the bottom line is that I don;t buy the PR that only "full hybrids" and :"plug in" hybrids are "true" hybrids. That's hogwash, and besides Synergy is an expensive way to achieve mileage. 45mpg -in a clean gasoline powered car- when doing 80mph with three people on board, and in comfort, is impressive.

[rookieat60]

Love looking at comments. One guy is not impressed with 45mpg. What does he get? What a joke. I would love to get 45mpg. I will definetly buy a Honda Insight in the spring. It may take 2-4 years to pay back the extra cost of the $20,000 over a Honda Fit but it WILL pay back. Plus, I am not a tree hugger. I am retired. I am on a fixed income. Gas will get more expensive. Why have a car that gets poor mileage? With 45mpg I will have more disposable income for other things, like playing golf or any other activities.

[rookieat60]

Interesting comments. One guy is not impressed with 45mpg. What a joke. What does he get? Some people may buy the Insight because gas is expensive and they want to spend their money on other things. Payback may take 2-4 years but it WILL PAYBACK.

[Jimmy Le]

I get 60 mpg with my Prius. I also get 32 mpg with my wife's CRV but she gets 25 mpg. If you drive 62-65 MPH on the highway and accelerate slowly you will improve your gas mileage by at least 20%.

If we ever enforce the 65 MPH speed limit and reduce the number of big SUVs on the roads to half we won't need to import any oil from the MidEast.

For a time people slowed down when gas was $4.30, now I notice they are going 80+ MPH on the highway again.

[Ben]

Honda has more environmental cred than any other auto company out there. Yes Toyota has Prius, but if you think their Prius offsets all of the trucks and SUVs they got on the road then you're mistaken. Honda is doing what they've always done...make small fuel efficient cars. Just now it's a hybrid. If only more of these fat auto company executives would think and act like Honda!

[bobby]

Its greed and the men who drive it... who is killing the technology to save the Earth...not the lack of technology

[topper]

Unions are to blame? please...
i would venture to guess that the standard of living is a lot higher in japan and germany than the USA for people working the same jobs at auto plants, what with generous healthcare plans etc. and all.
The people that blame the unions for a lack of competitive products from the big three dont seem to recognize that ford and gm (im not so much a chrysler fan..) make excellent cars OUTSIDE the US. But when it comes to the US domestic market these automakers choose not to improve the quality of the cars offered (we've been sold the same generation focus platform for a decade while the UK gets the newest version), and do things like sell the same car under 4 different brand names and waste a lot of money in the process. Mismanagement and bad strategy in a changing domestic economy is what landed the big three where they are now. Not the Unions.

[Eightieschild]

anyone seen info about the Italian Fiat coming to the USA?
It's supposed to get a lot of MPGs
I was told by someone in the car biz that the cost of an electric battery does not make up fir fuel savings.
My nissan altima I'm sticking with. I hope by 2010, the newer car choices will make sense. I hope GM goes down, they dont deserve a bailout Period!

[Terry]

I WAS very excited by this car... until I saw it and drove it. I could not believe how cheaply this car is slammed together, the poor fit and finish and it is EXTREMELY difficult to stay in the green zone on the speedo. You can't even touch the gas pedal to keep it at its best mileage. The Honda Civic Hybrid is light years away in fit and finish and usability.
The orange peel in the paint was the worst I have ever seen on a car of any brand. Park next to a Civic and see what I mean. You can push the door panels in, the center console can be pushed from side to side. I would not want to be hit by even a bicycle in this thing. And ultra, ultra small inside. The salesman was 6'2" in the passenger seat, and was hunched over, with his knees touching the dash!
The Civic Hybrid is the same price as the Prius which is larger, and better mpg for exactly the same price base model.
I tried to get up a freeway onramp. It felt like a semi had a anchor chain on my rear bumper. It was ridiculous.
Then I saw the Fusion Hybrid. WOW. it simply blew these other three into the weeds. Its a real car, solid as a rock and Ford has tied Toyota in reliability. No brainer. Owners are getting in the high 50's and low 60's with the Fusion. The Insight is a joke and none of the test mags mention any of this. The Insight even disappointed all the Honda salesman. NONE where thrilled. The lease is the same as a Prius!!