Compete with the Chevy Volt? Honda says no.
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 won’t be a competitor in that space. At least, that’s 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 don’t 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 that’s 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.
That’s 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 doesn’t want to share its secret just yet.
Related Posts:
May 22nd, 2008
There are definitely some good points made by Honda. I think as the price gets close and eventuallty passes the 40k mark, Chevy is going to be stuck with a prodcut they just can’t sell :(
Check out more info about the future of the Volt at http://www.chevy-volt.net