Honda Eyes Production Cut as Accord Hybrid Sales Fall

[Freddie Stubbs]

The move highlights the industry's uncertainty over the technology's popularity and future.

By John O'Dell, Times Staff Writer
April 14, 2006


Honda Motor Co. may be learning a hard lesson about hybrids: It's better to hold the horses.

A Honda executive said Thursday that the automaker might reduce production of its gas-electric Accord hybrid sedan because the vehicle, marketed as a performance model rather than a fuel miser, hasn't been selling as well as hoped.

It was the second time this week that auto executives attending the New York Auto Show have raised questions about the popularity of hybrid technology.

Nissan Motor Co. Chief Executive Carlos Ghosn said Wednesday that hybrid sales appeared to be slowing, something he has frequently suggested could happen as consumers weigh hybrids' extra sticker cost against their fuel economy.

more: http://www.latimes.com/technology/la-fi-hybrids14apr14,1,5707479.story?coll=la-headlines-technology

[Liberty Belle]

1. Toyota's hybrid is a far better deal than Honda's and gets better mileage.

[ChairmanAgnostic]

6. you mean people respond to effective technology? wow.

what an idea.

Of course, GM's Hummer hybrid will get 12 miles on the highway and 8 in the city, a drastic improvement. But since GM cancelled all research in gas saving technologies, it might be a while.

[Toots]

30. Are you suggesting that the Hummer is "effective technology"?

Maybe I missed your point in bringing up the Hummer? :shrug:

[ChairmanAgnostic]

34. simply a comparison. GM builds more hummers,

Honda, Nissan, VW, and others work on fuel saving technology.

Hey, have you seen the website with the hummer stuck on rocky gorund, while a Jeep drives merrily by? It was here on DU either yesterday or the day before. A side-splitter.

[longship]

2. Pretty difficult to market against the Prius.

The Prius is everything a hybrid should be. Very good performance and exceptional fuel economy. I drove one of the previous model Prius and it was incredible. So quiet you don't know that you're suddenly going 70+ miles per hour. Roomy back seat--seats four comfortably. I guess reliability is very good, too. Here in CA you can drive the Prius in the diamond lanes w/ only one person on board.

It's that good of a car. Wish I could afford one.

[CabalPowered]

15. I pulled my prius apart to install the integrated Sirius

tuner and you would not believe the level of engineering that is below the surface. Not a single cubic inch of space was wasted. I've tinkered with stereo installations before and dissembling the prius was an absolute breeze compared to other cars.

I lucked out on the price as I have a good buddy who works for the local Toyota dealership. I think in the next couple of months your going to see the used inventory available increase as a lot of 2004/2005 drivers have traded in on the 06 and captured the tax credit. I know my dealer has at least three right now that have under 10k miles on them, all from folks who upgraded to 06.

[Buck Laser]

3. The Accord Hybrid...

...seems to have been more of a bastard. They tried to provide high performance in the sense of great acceleration instead of the good gas mileage and technological sophistication that prompts most people to buy a hybrid. I've had a Civic Hybrid for nearly two years now, and I couldn't be happier with it. I get 45 mpg in my usage, and it's been utterly problem free. I couldn't quite justify the hybrid on a strict dollars and cents basis, but when you add in the pleasure of owning a bit of advanced technology along with the gas saving, it was a no-brainer for me.

[rwinkler]

23. Ford Escape

Considering a Ford Escape hybrid which gets up to 35mpg as compared to 27 mpg for my Suzuki Sidekick. Anyone had any experience with Ford Escape hybrids they'd like to share?

[joefree1]

4. Bet sales of Hybrids go up again after this summer

Can you imagine $4.00 a gallon gas? I knew that you could.

[MadisonProgressive]

14. That's easy, Can you imagine $7.579?

[BootinUp]

5. According to consumer reports

none of the hybrids they reviewed save enough on gas to recover the extra sticker cost and maintenance cost inthe first 5 years. Its that kind of info that will make me go with a fuel efficient gas only engine.

[acmejack]

8. What gasoline price did they use to compute that?

Throwing in a dollar or two of delta will alter the outcome rather significantly, I wager...

[BootinUp]

11. I don't think so.

The most cost effective in the article was the Honda Civic and figuring 15,000 miles per year and 3 to 4 dollars per gallon it still costs by their estimate 3700 more over the 1st 5 years. The comparison used is to similar all gas models. So essentially they are saying get the same car without the extra hybrid parts and save money.

[Roland99]

13. For many people, though, it's not just about the money...it's about

doing the right thing and doing one's part to lessen that addiction to oil.

[LostinVA]

9. I got a VW TDI, because all my research (including CU) showed

that if you do mainly back road and /or interstate driving, the TDI is a better match for you than a hybrid... I started out getting 45 mph. As the engine has broken in and I've made myself forget wasteful driving habits, it's went to a consistent 50-55 mph (depending on certain factors: tire pressure, etc.). I've been very happy.

Plus, I can use an alternative fuel in the engine.

[AnnieBW]

17. VW Passat

I get pretty good mileage with my new VW Passat, and it's a heavier car than the Japanese competitors.

Hopefully, VW will be able to sell their diesel cars in the US as soon as our diesel regulations kick in. The "clean diesel" mix goes on sale in November.

[tammywammy]

41. VW Passat TDI...

coming in 2008!

[Ezlivin]

18. I can't drive 55!

As the engine has broken in and I've made myself forget wasteful driving habits, it's went to a consistent 50-55 mph...

:)

[LostinVA]

19. OMG!!! I meant 50-55 mpg!

[NickB79]

20. Consumer Reports retracted that article due to a math error

http://www.msnbc.msn.com/id/11637968/

"Accustomed to informing its 4 million readers about others’ products, Consumer Reports magazine has had to alert them to its own mistake: Its April auto issue, already sent out to readers, contains flawed data that showed no hybrid vehicle can save money compared to a gasoline peer.

Revised figures show that two of six hybrids tracked, the Toyota Prius and Honda Civic Hybrid, do save owners money in the first five years — $406 and $317, respectively, compared to the Toyota Corolla LE sedan and Civic EX sedan, the magazine said."

[BootinUp]

22. Thanks.

Thats good information.

[CountAllVotes]

36. yes that is good information - thanks

I guess I'll keep my 2002 Accord SE. It gets about 30 mpg freeway. I don't drive much. Bought this in 2002 and here we are in 2006 now - I've got 11,000 on it (so I drive about 2,000 miles a year). Not worth it in my case.

:kick:

[skids]

24. Self delete. Redundant.

[salin]

26. flawed assumption - the buyer was planning to buy a cheaper

car - and hence are 'behind' financially in the beginning. The three cars I considered buying, including the Prius, all had sticker prices within a couple of hundred dollars - the Prius being in the middle. I didn't start out in the preverbial 'hole'. Same with another family member who owns a Prius. It really depends upon the consumer and what they were planning to buy as to whether this comparison of costs and savings is real or not.

[PurityOfEssence]

28. Is that your only issue?

Hybrids pollute less. They capture energy when braking or going downhill.

If your only impetus is personal savings, then they're not advantageous in THE SHORT TERM (or, shall we say, the American approach).

Time passes quickly, though, and as I pump gas in Los Angeles that's $3.00 a gallon and RISING, the Prius I bought in September of '02 seems sensible even from the vantage of lunk-headed self interest.

Why must everything in this country be judged according to immediacy? Why is planting less of a footprint on the fragile earth some kind of esoteric folly?

Small though it is, there's a tax advantage to owning one of these. Factor that in. Those of us who live in California can also use carpool lanes.

Judging it all from cold-blooded personal savings may not warrant acquiring a hybrid, but if that's all that one determines one's existence, one is little more than a cockroach. To many of us, the true satisfaction is not the essential American thrill of "getting away with something", but the idea of being a good citizen and infringing less upon others. Pollution is a major issue for many of us who drive these silly things.

Even so, in a year and a half, I'm also saving money. If saving money is everything, then prudent care of one's vehicle should also pass the simplistic test.

[BootinUp]

29. Your post comes off offensive and judgemental.

Maybe we should trade places and see if perceptions change at all?

[Robb]

35. Bear in mind for your statement "hybrids pollute less" to be true

...you must be willing to hang on to your vehicle for 15+ years.

Pollution in the name of production of a new car, doncha know. Some folks forget. :hi:

[asthmaticeog]

31. Someone who has a Honda or Toyota for only five years

is doing something wrong. Did they do calculations for 10 or 12 years?

[BootinUp]

33. The data is provided so the reader

can do that calculation themselves. But, if you look at one of the other replies to my post, there was a very misleading error in the article. I probably wouldn't even have made the post otherwise as the cost difference is not as significant as I was lead to believe.

[GreenPartyVoter]

7. I think sales will go up again as gas prices do too

[LostinVA]

10. Me too n/t

[w4rma]

12. "marketed as a performance model rather than a fuel miser" (nt)

[AnnieBW]

16. I Looked At The Accord Hybrid

Actually, the salesman at the dealership suggested that I not buy it, even though he would have gotten a higher commission for it. He said that there were mucho problems with it, and it got about as good gas mileage as the regular Accord.

[NickB79]

21. Only the Accord is declining in sales, the hybrid Civic is UP 32%

"Not all hybrids are hurting: Sales of Honda's smaller Civic hybrid are up 32% this year."

The hybrid Accord's sales are dropping because they tried to build a sports car instead of a gas-sipper with their hybrid tech.

With gas prices skyrocketting this summer, hybrids will likely boom in sales.

[SoCalDem]

38. It's purchase price..Civics cost less

People are maxxed out.. If gas gets too tight, I guess they can try to carpool or drive less, but once you have signed on the line, you are obligated to make that car payment EVERY month..

I think there are lots of people who aren't sure they'll still have a decent job in a year or two, and are afraid to buy ANY new car..

[cornermouse]

25. If you don't mind waiting a 6 months or more (I was told by a

Toyota salesman the waiting list had been 18 months) and don't mind getting whatever color comes in the shipment, then you might want to get a Prius.

Honda was able to get it sooner and I could pick my colors. The Civic hybrid is an excellent car and given the price of gas now, I suspect we'll see $4 a gallon gas before the year is over, possibly settling back down to "normal" $3 a gallon till the oil executives decide to go on another price raise binge.

[brentspeak]

27. The regular Accord is pretty good on gas without a hybrid engine

And the regular Civic is a total gasoline miser.

[Toucano]

32. The Accord wasn't designed for fuel economy but rather performance.

It's only natural it wouldn't sell as well in that class of vehicle.

It's a fine vehicle, but for those looking for a greener car, the Prius is hands down the winner.

[Jacobin]

37. Yep.

Accord hybrid is not marketed or designed for better economy. It saves little on fuel compared to non-hybrid, so the article's title is pretty misleading

[AlCzervik]

39. or the Civic Hybrid. The accord hybrid would have been better if they

made it available in the 4cyl model, i would have bought one myself.

[onenote]

40. its not hybrid tech thats unpopular, its the accord

US hybrid sales in March 06 were up 7.5% over March 05 and over 19% higher than Feb.06. But Accord hybrid sales were down 26% from the previous month and 69% lower than a year earlier.

Any auto executive that concludes that hybrid technology isn't popular by looking only at Accord sales is an idiot.

http://www.greencarcongress.com/sales/

onenote