Kill off Insight, Insight going away, and new plant in US - GreenHybrid

Sledge · #1 (**permalink**) 05-17-2006, 05:30 AM

Quote:

Source: Bloomberg Radio - Automotive News

According to Bloomberg News, Honda will discontinue the Insight model in July due to lack of demand, and will build new plants in U.S. and Canada. The automaker is spending $665 million on growth; has a new hybrid car and diesel engine coming. Site selection for U.S. plant in final stages

DETROIT -- Honda Motor Co. will spend $665 million over the next two years to build a new auto assembly plant and expand engine and transmission production in the United States, and a new engine plant in Canada.

The new assembly plant will boost North American production capacity to 1.6 million units a year in 2008, Honda said. Currently, its annual North American production capacity stands at 1.4 million units.

The Japanese automaker also said it will introduce a new, dedicated hybrid car that will be cheaper than the current Civic Hybrid and have a sales target of 100,000 units a year in North America. Honda also plans to develop a new, four-cylinder diesel engine that will be sold in the U.S. and Canadian markets. The new diesel is based on a diesel engine Honda now sells in Europe.

Honda also has set a goal to boost the corporate average fuel economy rating of its fleet by 5 percent from 29.2 mpg rating in 2005 within the next four years.

The North America expansion plans are part of Honda’s bid to reach goals set out in its “2010 Vision” long-term plan, which was launched in 1998. Information on Honda’s global expansion plans was announced Wednesday morning in Japan.

Honda said the new U.S. auto plant will begin building vehicles in 2008. The auto factory, Honda’s sixth in North America, will have annual capacity of 200,000 vehicles and employ about 1,500 people.

Honda said it will spend $400 million to build the plant. But it did not say where the plant will be located or what it will produce. The automaker said its site search was in “the final stages.” The plant’s location and product will be announced later.

There is no mystery about the site of the new engine plant in Canada. Honda said the plant will be built next to its vehicle assembly plant in Alliston, Ontario. The engine plant will cost about $140 million and is set to begin building four-cylinder engines in 2008. It will have 340 employees and a capacity of 200,000 engines a year.

To supply the new auto plant with engines, and provide parts to the new Canadian engine plant, Honda will spend $75 million to expand its engine plant in Anna, Ohio. The expansion, which adds 40 jobs, will enable the Anna plant to produce engine parts that are now imported from Japan.

Honda is also spending $80 million and hiring 40 new workers for its parts plant in Tallapoosa, Ga. The plant will add the ability to cast and machine transmission cases.

New, cheaper hybrid on the way

Honda’s plant in Suzuka, Japan, will build a new, dedicated hybrid powertrain vehicle, beginning in 2009. The hybrid will play a key part in Honda’s quest to boost its fleet fuel economy average by 5 percent by 2010.

The Suzuka plant will have the capacity to build 200,000 hybrids a year. Honda said 100,000 of them will be earmarked for North America.

The new hybrid will have a price “significantly lower” than the Civic Hybrid, Honda said. The 2006 Civic Hybrid has a base price of $22,700, including shipping charges.

Honda officials said the new hybrid will be sold only under the Honda brand and not be shared with the Acura luxury brand.

Honda said it also plants to introduce a new version of its i-VTEC variable valve timing technology and a more advanced version of its VCM cylinder deactivation technology for six-cylinder engines to help meet its goal of increasing fleet fuel economy.

bwilson4web · #2 (**permalink**) 05-17-2006, 05:34 AM

Quote:

Originally Posted by Bloomberg

. . .
Honda also has set a goal to boost the corporate average fuel economy rating of its fleet by 5 percent from 29.2 mpg rating in 2005 within the next four years. . . .

Thank you Honda!

Bob Wilson

Archslater · #3 (**permalink**) 05-17-2006, 05:41 AM

Anybody care to bet what the new "dedicated hybrid powerplant" car will be like? When they say 'dedicated' I assume that they mean there will not be a non-hybrid version, a la Insight and Prius. I would expect something similar to the Fit?

foo monkey · #4 (**permalink**) 05-17-2006, 07:21 AM

Godspeed, Insight.

brick · #5 (**permalink**) 05-17-2006, 08:33 AM

Good lord. That's quite a plan! I wait anxiously to see what they come up with that will sell 100,000 units a year. They won't be able to punt on the fuel economy of the new hybrid. It will have to **seriously** perform in order for the critics to accept it.

Sledge · #6 (**permalink**) 05-17-2006, 08:56 AM

IMAS?

Nah. Probably not.

ElanC · #7 (**permalink**) 05-17-2006, 11:01 PM

Quote:

Originally Posted by Sledge

Honda’s quest to boost its fleet fuel economy average by 5 percent by 2010.

That's pathetic.

TreeHugr · #8 (**permalink**) 05-18-2006, 08:24 AM

Sad but probably true...

Honda Kills the Insight New hybrid vehicle to be developed, priced below current Civic Hybrid

American Honda Motor Co. Inc. plans to kill the Insight hybrid this year.

The small, two-seat Insight, introduced in the United States in 1999, sold only 320 units in the first four months of this year. That compares with sales of 30,357 for the competing Toyota Prius, a family sedan embraced by environmentalists.

http://www.autoweek.com/apps/pbcs.dl...024/LATESTNEWS

TreeHugr · #9 (**permalink**) 05-18-2006, 08:26 AM

http://www.greenhybrid.com/discuss/s...3101#post63101

Delta Flyer · #10 (**permalink**) 05-18-2006, 08:27 AM

Like the Macintosh computer, the Insight had a small and devoted following that felt it was the best at what it could do. From 1999 thru 2006, it had the best fuel economy in the US and many other nations. Interestingly, those were the years Lance Armstrong had a record streak winning the Tour de France. If the Hummer emulates Arnold Schwartenegger, the Insight was built like Lance Armstrong . Both Lance and the Insight were light, proportionately very strong, sliced the air well, analyzed how to make a run thourghly, champions in what they did.

The Insight did not change much. It's partially a tribute to the cutting-edge engineering, but also a sad commentary on the lack of interest by the general public and most automakers for a gas mizer.

Insight owners have speculated on a successor with upgrades. Seems like the electric motor could be at least 20% better, the body as much as 300 pounds lighter with even less drag (or a little larger and seat four). Engines are better and the software regulating the hybrids is also better. The technology is there for a vehicle like the Insight to get an EPA 80mpg, over 100mpg hypermiling.

Honda has historically led the way with green, fuel-efficient vehicles, starting with the Civic CVCC that did not need a cataylitic converter in the 1970s. While Toyota has most of the hybrid sales, Honda has the highest fleet mpg. This is in part because management decided to go slow and green in the truck/SUV market.

Based on their history, Honda will built something better than the Insight in time.