Honda takes on Toyota 's lead with lower prices.
When the all-new 2010 model of the Honda Insight goes on sale March 24, Honda reverses a premium pricing philosophy that it once held along with the Toyota Prius. With a manufacturer’s suggested retail price (MSRP) of $19,800, plus $670 for delivery and any other options, taxes and fees, the Insight LX is now the least expensive new hybrid available in the U.S.
The five-passenger, five-door dedicated hybrid vehicle is powered by a 1.3-liter “i-VTEC” gasoline engine and a 10-kilowatt electric motor through a continuously variable ratio transmission. The electric motor between the engine and the transmission, adds power during acceleration and in certain cruising situations. It also recaptures energy from the vehicle’s forward momentum during braking.
EPA-estimated city/highway/combined fuel economy ratings of 40/43/41 miles per gallon for all three models are claimed, based on the post-2008 EPA methods. With a 10.6-gallon fuel tank, the Insight delivers an estimated maximum driving range exceeding 400 miles.
The third-generation Toyota Prius, also due this spring, has EPA estimated mileage of 50/49/50 mpg on the city/highway/combined scales. Prices haven’t been announced, but the 2009 Prius model ranges from $22,720 to $24,990. Prius is about two inches longer, wider and taller than the Honda Insight. Globally, more than 1.3 million Toyota and 40,000 Lexus hybrid vehicles have been sold, compared to more than 300,000 Honda hybrids. Toyota commands a 75% share of the U.S. hybrid market since it established it a decade ago.
“The all-new Honda Insight brings the cost of entry for hybrid technology within closer reach of an entirely new car-shopping audience,” says Dick Colliver, executive vice president of American Honda. “In addition to making good environmental sense, hybrid technology is now entering a new era where it can also make financial sense for a broader range of customers.”
Honda’s latest hybrid vehicle revives the Insight nameplate, which was first used in 1999 on a small, two-seat vehicle. Standard on the 2010 Insight LX are front, front-side and side-curtain airbags; an anti-lock braking system; a continuously variable automatic transmission (CVT); Eco Assist; automatic climate control; tilt and telescope steering column; manual driver’s seat height adjustment; power windows; a four-speaker AM/FM audio system with CD player and auxiliary audio input for external digital music players.
The Insight EX, at $21,970 adds “Vehicle Stability Assist” ; alloy wheels; cruise control; steering wheel-mounted paddle shifters; an upgraded audio system with six speakers; USB audio interface; a center console with armrest and storage compartment; heated side mirrors with integrated turn signals.
Insight EX with a satellite navigation system, $23,770, has voice recognition and provides routing to individual addresses and more than 7 million points of interest within the continental United States. Models equipped with the navigation system also include “Bluetooth” for hands-free operation of compatible mobile telephones, along with related steering wheel-mounted controls for voice activation of the navigation and hands-free telephone systems.
Models for sale in California and states that have adopted the California Air Resources Board (CARB) ZEV standards receive an Advanced Technology Partial Zero Emissions Vehicle (AT-PZEV) emissions rating.
At that price, I think they just may sell a few of these. If I was in the market for a car, I would definitely look at it. Too bad there’s not Ford or Chevy that is competitive with this. I seem to remember reading a while back that Honda’s goal with the new Insight and new hybrid versions of some of their other cars was to cut the premium that buyers were be paying for hybrid technology. Looks like they’ve done it. If a low priced hybrid from Honda can’t generate some sales in this slow market, nothing can.
Sales remain to be tallied, and the actual asking price on the dealer’s showroom floor — both for Honda and Toyota shoppers — could change things dramatically. The Prius employs a much more sophisticated hybrid system that is ultimately more efficient. Still, to many Insight appears to be a slightly smaller Prius clone at a lower price. Prius, at 50 mpg has the bragging rights. We will also see how Toyota offically responds since it hasn’t priced the 2010 Prius yet.