Compete with the Chevy Volt? Honda says no

Compete with the Chevy Volt? Honda says no http://tinyurl.com/4tkag9
Honda has traditionally taken a wait and see approach, and the blossoming plug-in hybrid market is no exception. Assuming the Chevy
Volt is released in 2010, Honda wont be a competitor in that space. At least, thats what its CEO Takeo Fukui says.
Honda is concerned about the premium prices placed on current hybrid cars and wants to cap the price difference at $2,000 for standard models, according to BusinessWeek. That may be pushing potential plug-in hybrid models that would compete with the Chevy Volt out of reach as the associated R&D costs would demand a higher price.
Specifically, Fukui said we dont necessarily think the plug-in hybrid is a very great idea. If the batteries ever go through a major advancement, then the plug-ins will also advance, [but] if you look at the current battery performance, the cars have a very limited range.
Limited range may be a restriction for running on all-electric power, but thats the best part about plug-in hybrids, they can use multiple energy sources. The dream of only buying gas during long trips is half the reason the Chevy Volt is receiving so much buzz.
Honda differs in its opinion of plug-in hybrids from most of its competitors like GM, Nissan and Ford.
Thats a mixed bag because Honda could target a different segment than the Chevy Volt for example, by pricing a car under $27,000. Especially because the Volt continues to creep toward $40,000 as R&D costs continue to add up.
Of course, pricing a vehicle in that range would require significant efficiency gains from Honda, or a technology leap.
Then again, maybe Honda is working on a secret project and just doesnt want to share its secret just yet.
Chevy Volt may cost $35,000 - still interested? http://tinyurl.com/3ztr47
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Civis Romanus Sum

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It is pretty obvious that adding plug in to a hybrid is a no brainer. There are already a lot of companies changing excisting hybrids to plugins.
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Do a search of "economies of scale." Do you really think it cost much more to make a $40,000 vehicle than a $24,000 vehicle? Economies of scale, is what has been keeping down the price of small cars. For years it has been the sale of the larger safer cars, luxury vehicles and trucks. The reason is the manufacture needs the small car fuel figures to meet the CAF to be able to sell the larger safer cars, luxury vehicles and trucks. If the current stupid idea that by simply passing a law requiring a specific MPG is to continue, ALL vehicle prices must go up and the smaller the vehicle the greater the percentage of in crease. If you doubt that take a look at what happening to the average price of cars, and particularly the smaller cars when CAF was first enacted. The small FWD Chrysler Ney Yorker for example cost more to buy than the larger RWD Chrysler Ney Yorker 500 sitting nest to it on the showroom floor. Car that sells for 25K will easily cost 35K or more in five years.

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The old Detroit we can sell em for whatever we decide days are over. Economies of scale will not be determined by Detroit but by foreign car makers who will displace domestic car manufacturers in large measure within 20 years unless there are drastic reductions in all salaries and benefits and these are reflected in car prices. There is no hope for companies trying to re introduce gas guzzling Nostalgic muscle cars in the current situation. Detroit is brain dead and has been that way for a long time.
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