Honda to Cut Civic Hybrid Costs by 1/3
#21
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 ?
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.
#23
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
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
___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
#25
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.
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
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!!!
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
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).
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.
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.
production of electric motor housed within the transmission "bell". This will
significanly cut costs.
#28
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...
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
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 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.