Hybrid incentives keep Honda in the black
Hybrids help deliver profits"The Japanese auto industry is expected to pick up later this year thanks to government incentives, which are boosting sales of environmentally friendly cars, notably hybrids," said Okasan Securities auto analyst Yasuaki Iwamoto.
And that sale's boost helped Honda post a profit yesterday as many other automakers reported huge losses. As a result, Honda is picking up its hybrid pace to take advantage of the momentum of interest in hybrid cars, but is such a move the right move?
Eventually, government incentives for the purchase of hybrids will end in Japan. What happens then? Will consumers still continue to purchase hybrids? Will other markets, such as North America, pick up the slack?
Labels: Honda, Hybrid Vehicles
posted by Dahcredyns at
8:07 AM
4 Comments:
Honda posted a profit yes but ONLY because of major Japanese government credits and other incentives to bring price of their cars way down.
The Insight would have tanked without major 'socialized' intervention from their government and it will be undergoing major design changes they say, as result of publics overall dissatisfaction as its too slow, too noisy, cruise doesnt work worth a darn on hills and more.
I have to admit I am biased for the totally awesome Prius III - I would ever go Ford Fusion hybrid if it offered a smaller Fusion Jr version for start up price of 20k, but not Honda sorry.
I would have thought Honda would have learned with its V6 Honda Civic hybrid that also tanked.
In all fairness, I DO think Honda will have a potential hit with the upcoming Honda Fit Hybrid, as long as it doesnt 'option package' us to death!
I have to pretty much agree with you, although I am also interested in the CR-Z. It's not that I believe the CR-Z offers the sale's potential of the Fit hybrid, but if Honda can package and price the CR-Z correctly, it could be an interesting offering.
The Insight was basically "off the shelf" technology packaged in a cheaper "hybrid only" model. In that aspect it was a success as Honda was able to sell more Insights than Civic Hybrids.
It also think the Insight was successful in creating a price war with Toyota, keeping the cost of the Prius III down.
So while the Insight is not nearly as good a hybrid as the Prius III, it's presence was very important in the overall scheme of things....
That's a really good point, smurf. It might not have been to Honda's advantage, but for the buyers of hybrids, the Insight was extremely beneficial.
And, there is no doubt that Honda sold more hybrid vehicles because of the Insight, which is also good for Honda's hybrid program.
Overall, Honda's hybrid program has been much less refined than Toyota's. However, now that Honda has undertaken a much more aggressive belief in hybrids, I think the Insight mistakes will, ultimately, lead to better future Honda hybrids.
Post a Comment
<< Home