Hybrid & Related News New cars, press releases, articles and more. Reply only. Have news?

Honda to Cut Civic Hybrid Costs by 1/3

Thread Tools
 
Search this Thread
 
  #21  
Old 12-22-2005, 01:24 PM
ElanC's Avatar
Ridiculously Active Enthusiast
Join Date: Oct 2005
Location: El Cerrito, CA
Posts: 700
Default Re: Honda to cut Civic Hybrid costs by 1/3

Originally Posted by Reynolds

4 month waiting list in JP...and here, we only need to wait about 6 weeks. What does that say ? Anyone ?
It means they don't have enough capacity to meet worldwide demand for the HCH. And, apparently, they make more money selling them in the US, so they build more of them for this market.

Originally Posted by Tim
Rather than reduce the $1800 to a $600 hybrid cost, what they really need to do is offer hybrids in something less than the top trim level.
Yes, that's necessary for greater market penetration. As long as the HCH is in short supply they will sell only the top trim level. It maximizes their profit and it keeps the waiting list shorter. Once they have hybrids standing on the lots waiting for buyers (because they can build more of them) they'll be motivated to offer lower trim levels to increase demand.
 
  #22  
Old 12-22-2005, 01:31 PM
xcel's Avatar
Ridiculously Active Enthusiast
Join Date: Feb 2004
Location: Northern Illinois
Posts: 2,567
Default Re: Honda to Cut Civic Hybrid Costs by 1/3

--
 

Last edited by xcel; 12-02-2007 at 07:27 PM.
  #23  
Old 12-22-2005, 01:33 PM
Tim's Avatar
Tim
Tim is offline
Enchanter, Enthusiast
Join Date: May 2004
Location: Seattle, Washington
Posts: 852
Default Re: Honda to Cut Civic Hybrid Costs by 1/3

I agree with both of you - the options are certainly in there to increase the profit margin to soften the blow of the hybrid drivetrain (and allow the car to be profitable). I think it winds up pushing folks out of the market who might otherwise be interested. If they want to "hybridize" every model - fantastic. If they all wind up being top trim level models, that would slow things down. I think a modestly equipped 4-cyl hybrid Accord would be a hit.
 
  #24  
Old 12-22-2005, 02:30 PM
ElanC's Avatar
Ridiculously Active Enthusiast
Join Date: Oct 2005
Location: El Cerrito, CA
Posts: 700
Default Re: Honda to Cut Civic Hybrid Costs by 1/3

Originally Posted by xcel
Hi ElanC:

___Honda did have this problem about 2 years ago with HCH-I’s and they did not lower content to reduce the price. Honda did however offer nice internal dealer incentives or the dealerships themselves were eating losses while selling HCH-I’s for less then Invoice including Hold back. Honda is offering excellent internal incentives on the AH right now in fact and they are very well equipped if I do say so myself

___Good Luck

___Wayne R. Gerdes
Those are some of the mostly short term tactics in response to changes in demand. Obviously they can't change the product mix on short notice. It takes at least a year, probably more, from the marketing decision to the introduction of a trim level. They are probably in no rush to react to the recent spike in gas prices and the incentives for hybrids which will expire before too long. I imagine they are being fairly conservative in their estimates of future demand and are content for the time being with the high demand and relative shortage.
 
  #25  
Old 12-22-2005, 03:14 PM
leahbeatle's Avatar
Ridiculously Active Enthusiast
Join Date: Nov 2005
Location: Chicago area
Posts: 955
Default Re: Honda to Cut Civic Hybrid Costs by 1/3

ElanC makes an excellent point- not only do car companies react more slowly to changes in demand than other companies because of the long lead time needed to get a product to the market, but (as I'm certainly not the first person to suggest) in some ways it's a really great marketing strategy to have these kinds of shortages. Having a waiting list makes it seem like a new, popular, item, increases the feeling of elitism and creates free publicity. This isn't a great analogy, but think of the Beanie Babies- all those artificially created shortages made demand shoot through the roof, and all the attendant publicity fueled the craze. That won't work for hybrids in the long term, though, because a car isn't a collectible whose only value comes from its rarity and other people's desire to get their hands on it. Cars have to be functional. People, who generally need to use their cars to get places, can't usually afford to wait a few months after they choose one, since transportation needs are often immediate.

So, basically, being 'content for the time being with the high demand and relative shortage' is a bad idea. If too many people they they'll have to pay lots more for hybrids and put up with a lot of hassle for the privilege of doing so, it will drive down demand. It probably already has. To get products to really take off, they not only have to be good products, but they have to be cheap (or thought of as a good value) and easily accessible. Basic economics.
 
  #26  
Old 12-24-2005, 03:35 PM
stsmart's Avatar
Enthusiast
Join Date: Jul 2005
Posts: 7
Default Re: Honda to Cut Civic Hybrid Costs by 1/3

There is a lot of research on better, smaller, and cheaper batteries. Two major
companies are two-three years away from mass production.

Two well-known US manufactrurers of transmissions are also 3-4 years from
production of electric motor housed within the transmission "bell". This will
significanly cut costs.

A Korean company is doing "final stage" reasearch on larhe capacity electric capacitors for electric hybrid-car storage. MUCH lighter and cheaper than
batteries with no chemicals. Mass production of LARGE SCALE capacitors is the
"problem" to be solved.

So, can/ will costs come down within 3-5 years; you betcha!!!
 
  #27  
Old 12-25-2005, 06:32 PM
Double-Trinity's Avatar
Pretty Darn Active Enthusiast
Join Date: Mar 2005
Posts: 474
Default Re: Honda to Cut Civic Hybrid Costs by 1/3

I think one of the main reasons why they woulnd't go to an all-hybrid Civic line in the USA is that they woulnd't be able to produce enough hybrid drivetrains for the number of Civics sold. I don't believe there's enough supply of the battery components to do something like that, so, as a result, the Auto companies are trying to make the most they can with the limited supply selling hybrids in High-Trim cars only, rather than on lower-profit-margin economy vehicles (though arguably, that is where fuel cost savings might be most needed by consumers).

Two well-known US manufactrurers of transmissions are also 3-4 years from
production of electric motor housed within the transmission "bell". This will
significanly cut costs.
Something like this, a stock transmission with built in mild-hybrd system that coudl be dropped into any stock vehicle has the potential to greadly reduce overall fuel consmuption, much moreso than the relatively few numbers of "full hybrid" systems that will require more R&D to be adapted to new cars.
 
  #28  
Old 12-25-2005, 07:21 PM
Delta Flyer's Avatar
Banned
Join Date: Apr 2005
Location: Lewisville (Dallas), Texas
Posts: 3,155
Default Re: Honda to Cut Civic Hybrid Costs by 1/3

Originally Posted by stsmart
...A Korean company is doing "final stage" reasearch on larhe capacity electric capacitors for electric hybrid-car storage. MUCH lighter and cheaper than batteries with no chemicals...
When Honda was working with the Insight prototype (the sporty JVX around 1997), they originally planned capacitors, but dropped the idea due to safety concerns.

I have nothing against it, if it turns out to be a superior electric storage system. I hope it would retain a charge for at least a day - I'd hate to start every morning in the recal mode.
 

Last edited by Delta Flyer; 12-25-2005 at 07:38 PM.
  #29  
Old 12-27-2005, 10:37 AM
Double-Trinity's Avatar
Pretty Darn Active Enthusiast
Join Date: Mar 2005
Posts: 474
Default Re: Honda to Cut Civic Hybrid Costs by 1/3

Originally Posted by Delta Flyer
When Honda was working with the Insight prototype (the sporty JVX around 1997), they originally planned capacitors, but dropped the idea due to safety concerns.

I have nothing against it, if it turns out to be a superior electric storage system. I hope it would retain a charge for at least a day - I'd hate to start every morning in the recal mode.
I know traditional capactiors definitely lose their charge much, much quicker than batteries. However, a lot of the newer ultracapactiors are being designed specifically to be battery replacements, so they have greater capacity, and lose their charge slower. However, this would be yet another reason to use some ultracapactiors in parallel with a noraml battery -- the bulk of the current would be stored in the traditional battery, while the capactiors would help satisfy peak power demands, and to act as somewhat of a "buffer" to spare the main battery from rapid shallow cycling (stop and go traffic, etc). I believe a lot of all electric vehicles have used this setup, because their electric motors demand a great deal more power than a relatively small IMA motor. If the portion of peak power supplied by the motor were increased from say 20 HP to say 70HP, then fuel-economy oriented hybrids could still use a "downsized" engine, yet lack nothing in terms of acceleration for things like quick passing. That type of setup would be a major strain on ordinary batteries though during WOT, so capactiors would be useful there.
 
  #30  
Old 02-19-2006, 06:57 PM
mblackbo's Avatar
Enthusiast
Join Date: Feb 2006
Posts: 1
Default Re: Honda to Cut Civic Hybrid Costs by 1/3

I had to wait 6 months for my 2006 Civic Hybrid!
 


Quick Reply: Honda to Cut Civic Hybrid Costs by 1/3


Contact Us -

  • Manage Preferences
  • Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service - Your Privacy Choices -

    When you click on links to various merchants on this site and make a purchase, this can result in this site earning a commission. Affiliate programs and affiliations include, but are not limited to, the eBay Partner Network.

    © 2024 MH Sub I, LLC dba Internet Brands


    All times are GMT -7. The time now is 01:09 PM.