Hybrid War Heats Up in Japan

Honda's new Insight went on sale in hits homeland about a week ago, and already it's under attack. Before it hit the market, there were rumors that it would be much cheaper than the Toyota Prius. Toyota, however, has other ideas. The Insight is 1.89 million yen ($18,853 USD) in Japan, which is the same price as the current Prius. Toyota then priced the coming third generation Prius at 2.05 million yen ($20,437 USD) to keep it close to the Insight. Then Toyota said it would keep the second-generation Prius on sale in Japan, and there have been rumors that Toyota is also working on a cheaper Prius costing around 30% less than the current one. That would pit three Prius models against one Insight, all similarly priced.

In response, Honda CEO Takeo Fukui said Honda will not lower the price of the Insight. Said Fukui, "I think that is something we can't do right now. We have to carefully examine the new Prius to know whether it is necessary for us to take certain measures. We have to think about the balance between cost and effectiveness." If Toyota does come out with three Japan-market Priuses, Honda will be thinking long and hard about those issues.

Unlike Toyota, though, Honda does have the CR-Z hybrid coming, which could give Honda some sporting hybrid credentials that Toyota doesn't yet have. Honda also said it is expanding its research and hybrid push into large sedans instead of counting on clean diesels for its bigger cars. Fukui feels that clean diesels are too expensive to develop be practical.

Source;
http://www.autoblog.com/2009/04/03/honda-ceo-says-insight-price-wont-be-reduced-further/

Dacia Duster Hybrid Crossover Concept To Debut In Geneva

.Dacia, an automaker with Romanian origins and is now subsidiary of Renault, will be unveiling its first concept at this year’s 2009 Geneva Motor Show. The Dacia Duster concept is a crossover coupe that has one-door on one side and two-doors on the other side. So while it can be pitched as sporty crossover, it can also come in handy as an MPV (Multi Purpose Vehicle).
The Dacia Duster crossover concept is powered by a 1.5 dCi engine making 105-hp. Mated to a 6-speed manual transmission, the Duster can run from 0 to 62 mph in 9.6 seconds while returning a fuel-economy of 53 mpg (44 mpg in U.S. terms). No word on whether Renault and Dacia will put Duster into production but it sounds like a good idea for the European market…..”
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Honda says to raise Insight output as orders climb

TOKYO, Feb 24 (Reuters) - Honda Motor Co plans to produce more of its new Insight hybrid cars from April, having received orders for almost three times its monthly sales target for the gasoline-electric model it launched on Feb. 6 in Japan, a top official said on Tuesday.

Honda plans to launch the Insight, its first attempt at a low-cost, high-volume hybrid, in Europe and the United States over the next two months.

Japan's No.2 automaker is targeting global sales of 200,000 Insights a year, with half of that in North America and 60,000 in Japan, hoping to rival Toyota Motor Corp as a leader in the hybrid segment.

"The response has been overwhelming," Hiroshi Kobayashi, deputy chief operating officer for Honda's domestic operations, told a small group of reporters at a test-drive event in Tokyo.

"We will have to increase production plans," he said. But he stopped short of saying how much it could expand output given possible supply limits for hybrid components.

Customers in Japan will have to wait at least one month for an Insight if they ordered one today, he said.
Honda is positioning the Insight as its fifth "global car" alongside the Civic, Accord, Fit and CR-V cars, which collectively make up about two-thirds of its car sales.

Kobayashi said half of the Insight sales so far were to customers switching from other brands, including premium import brands and Toyota's hybrid leader, the Prius. The Insight starts at 1.89 million yen ($19,980) in Japan.

"What's unique about the Insight is that we're attracting a broad range of drivers, from (660cc) minivehicles to sedans to minivans," Kobayashi said.

While cautioning that the Japanese car market remained tough -- total vehicle sales in January fell 20 percent from the year before -- Kobayashi said Honda aimed to sell as many cars in the business year from April as the 570,000 to 580,000 units he expected it to sell in the 12 months to March 31.

Toyota is due to launch its third-generation Prius in May, pricing it slightly higher than the current version, which starts at 2.3 million yen in Japan. Local media have reported widely that Toyota would take the unusual step of selling the current model at a discount alongside the new version to compete with Honda's Insight.

A Toyota spokeswoman said the company had made no such decision yet. ($1=94.59 Yen) (Reporting by Chang-Ran Kim; Editing by Hugh Lawson)

Source;
http://uk.reuters.com/article/rbssConsumerGoodsAndRetailNews/idUKT37087520090224?sp=true