LexFather

Honda may cut production of Accord hybrid
Slow sales due to consumers being uncertain about fuel savings, exec says

Julie Jacobson / AP file


Updated: 2:20 p.m. ET April 13, 2006
NEW YORK - Honda Motor Co. may cut production of the Honda Accord hybrid because sales have been so slow, Honda Executive Vice President **** Colliver said Thursday at the New York Auto Show.

Colliver was the second executive in as many days to question the direction of hybrid sales during media previews for the show, which opens to the public Friday. Nissan Motor Co. Chief Executive Carlos Ghosn said Wednesday that hybrid sales appear to be slowing down, something he has warned could happen as consumers decide whether hybrids are worth their additional cost.

Colliver wouldn't give exact sales for the Accord hybrid, which went on sale in December 2004, but said they make up a tiny percentage of Honda's overall sales. Overall Accord sales were down 4 percent last year, according to Autodata Corp.

"We've had to reevaluate our position," Colliver said. "It's having a hard time in the market."

Colliver said a decision on the Accord will be made sometime this year.

Not all hybrids are suffering. The Honda Insight hybrid saw sales jump 15 percent last year, and Colliver said sales of the Honda Civic hybrid remain strong. The company expects to sell 25,000 hybrid Civics this year, or 8 percent of its total Civic volume.

Colliver said the problem with the Accord is that the hybrid system is paired with a V6 engine, compared to the smaller 4-cylinder engine in the Civic, and consumers aren't convinced it will offer them any fuel savings.

Toyota Motor Corp.'s Lexus luxury division is betting that consumers eventually will adopt so-called performance hybrids like the Accord, which give vehicles a bigger engine with better fuel economy and lower emissions.

The 2008 Lexus LS 600h, introduced at the New York show, is the first luxury vehicle to pair a powerful V-8 engine with a hybrid system. The combination gives the 600h the power of a 12-cylinder engine with the fuel efficiency of a smaller vehicle. Lexus said the sedan will have fuel economy ratings equal to or better than some mid-sized luxury sedans.

But Colliver said he's not convinced consumers will embrace performance hybrids.

"We're still looking at where's the best package for hybrids," Colliver said. "We're going to have to watch the market."

Jack Nerad, editorial director of Kelley Blue Book, an auto information service, said he also expects consumers will be slow to adopt performance hybrids because they think of hybrids only as fuel savers.

"The general public doesn't grasp there is such a thing as a performance hybrid," Nerad said.

Hybrids made up 1.5 percent of new-car sales last year, up slightly from the year before, even though there were new models on the market, according to J.D. Power and Associates.

Link: http://www.msnbc.msn.com/id/12303373/from/RS.3/

spwolf

insight sales are up? lol. spin, spin, spin!

CK6Speed

iTrader: (1)

I'm not surprised. The Accord Hybrid while the fastest Accord does not have that much better performance over the Accord V6 to justify the price. I like hybrids when they are done right for their specific purspose, like the Prius, Insight, or Civic. If they are pure ecconomy cars it makes sense. As a performance car I'm not sold yet. The Lexus performance hybrids are a little better in that they offer a lot better performance over its non hybrid version, but that may change a bit with the LS and GS hybrids given that the GS450H goes 0-60 in about 5.2 seconds, but the GS350 could be in the mid 5 second rage as well. What I'm getting at is the added performance from performance oriented hybrids are not enough to justify the price premiun IMHO. What could change my position is if hybrid costs come down to where it makes sense to buy them if there is little to no premium costs for them. Otherwise right now they are only for those that want to feel good about themselves for doing their part to save the planet.

Then you have the real performance minded people who probably will never buy a performance hybrid anytime soon because they take their cars to the track (Not talking about 1/4 drag racing). For these people, hybrids make little to no sense. Yes, the hybrid might give a performance edge, but the question still unanswered is will the batteries hold up under track use? Most believe it will not and once the batteries die you are no dragging dead weight with a loss of power. Until the battery technology and charging system improve to the point where you can insure the batteries stay charged up under prolonged hard driving track use these people will not buy.

KrazyLexus

I agree. Also having to pay for a fully loaded Accord Hybrid (the only way they come) for 30k is a bit too much.

I drove one, liked it, but didn't like the price.

spwolf

well Accord Hybrid is an mild Hybrid that can not go on electric power alone and has 20hp electric engine.
GS450h is full hybrid with almost 200hp electric engine.

Huge differences here in both power added by engines and mpg added by the fact that you can go around in electric only mode...

Bercasio

iTrader: (1)

Not only Toyota is dominating the Innovative Technology Hybrid market in both reliability and high performance, but without good judgement calls on how to apply hybrids into the right engines @ the right time is crucial to the existing market. That said, Honda V6 with a poor 20-35 hp hybrid motor, results into costly cut backs. If we look beyond the so called problem of supposed slow hybrid sales, auto analysts or any other rival must relize that Toyota can offord this kind of movement, and with little competition even the level they have set it at.. results in global domination. ....it goes a little something like this.."Toyota, Lexus, Scion, and now Hybrids.....

SteVTEC

I'm honestly not too suprised at this either. Have not seen more than a handful of Accord Hybrid owners show up on forums, as per CR testing it only gets 2 mpg better than the regular V6, and even with discounting it's still a ton more expensive. On top of that, making a V-6 run in V-3 mode is not exactly easy either. They're using all sorts of funky stuff in there like active motor mounts, active noise cancellation, etc, and all of that adds to the cost greatly along with reliability concerns.

Between an Accord Hybrid and the new Camry Hybrid, I would definitely for for the Camry. Obviously if you're buying a hybrid, mileage is a big concern. But the value is diminished somewhat because the cat is out of the bag about hybrid mileage hype now. I'm willing to pay for it, but not $30k. I forget what the starting price of the Camry Hybrid is, but I know it'll be considerably cheaper than the Accord.

tqlla3k

iTrader: (1)

The accord hybrid is just plain dumb. They dont qualify for the tax credit, clean fuel tags or HOV lanes... whats the point.

People who buy hybrids in the Family sedan class want fuel savings... not a more powerful car.

GS3Tek

iTrader: (8)

I agree.
I'd prefer the Civic....and by far this current gen is the best looking

LexFather

Well Honda and Acura are good for fuel effiecient 4 cylinder cars. Anything above that, I'd leave to another brand.

4TehNguyen

iTrader: (1)

accord hybrid was no where near as good as toyotas and lexus hybrids

mmarshall

Thanks. That's exactly the conclusion I came to myself last year when I reviewed the Accord Hybrid ( one of the first to come into the DC area ). That, plus the fact that most people do not buy hybrids for tire-burning performance, but for either gas efficiency or to make an environmental statement with low emissions.
If you look at the sheer economics of it, you have to save a LOT of gas over a LONG time.....even at today's high ( and climbing ) gas prices to justify not only the extra MSRP of a hybrid but the almost inevitable dealer markups as well.

GS69

Compared to the V6 it was like ~$2,000 more for ~ 10 more HP, 20 lbs of torque & 5mpg. They need to go ahead & slap a 4 cylinder in there & get them things to run more on electricity alone ...