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Honda Plans New Hybrids and Diesels

By Joe Benton
ConsumerAffairs.com

May 17, 2006

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As it phases out production of the Insight, America's first hybrid, Honda Motor Co. plans to add a reasonably priced hybrid designed for families as well as new diesels to its lineup as consumers continue to struggle with rising fuel costs.

The small, two-seat Insight was the first hybrid in the country when the car arrived in the U.S. in 1999.

During the first four months of 2006 Honda sold only 320 of the little hybrids. During the same period Toyota sold 30,357 Prius hybrids.

Honda plans to add a reasonably priced hybrid designed for families as well as new diesels to its lineup as consumers continue to struggle with rising fuel costs.

Honda executives describe the new vehicle, which will be available in 2009, as "suitable for family use" with a price that will be less than the current Civic Hybrid. The 2006 Civic Hybrid carries a base price of $22,700.

Honda hopes that the family hybrid will produce worldwide sales of about 200,000 units including 100,000 in North America. The new hybrid will be sold only as a Honda with no costly Acura version of the vehicle available for the North American market.

Honda plans also include aggressively marketing diesel-powered cars in North America. The company is presently developing a cleaner version of its 4-cylinder diesel engine. The engine has powered Hondas in Europe since 2004. The new diesel engine will be available within three years, according to the company.

Honda plans for the new diesel to meet stringent regulations in Europe, Canada and the U.S. The new diesels engines will be available in both Honda and Acura vehicles.

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