Honda To Offer 50 MPG Civic Hybrid

DETROIT, Feb 25 Reuters reports that while other auto makers voice their opposition to higher U.S. fuel economy standards, Honda Motor Co. Ltd. is ramping up production of a compact sedan that gets about 50 miles (80 km) per gallon.

While the gasoline-electric ``hybrid'' version of the popular Civic will not be sold in large enough numbers to have much impact on Honda's balance sheet, the auto maker hopes the vehicles will burnish its image as an environmentally aware company.

The hybrid Civic is ``an investment in the future,'' Peter Rech, head of Honda product planning, said on Monday during a presentation. ``It's important for Honda to be a leader ... it's one way Honda sustains its independence.''

The Civic hybrids will be priced at about $20,000, roughly $3,000 more than high-end models of what now ranks as the third best-selling car in the United States. Honda hopes to sell about 2,000 hybrid Civics per month, less than 10 percent of its average monthly Civic sales, after the car makes its commercial debut next month.

The Civic follows in the footsteps of two smaller vehicles -- Honda's own Insight and Toyota Motor Corp.'s Prius sedan -- as a hybrid car that boosts fuel economy by linking a gasoline engine to an electric motor and battery pack. General Motors Corp., Ford Motor Co. and the Chrysler arm of DaimlerChrysler AG have pledged to build their own hybrids in a year or two from now.

Hybrids have been touted by environmentalists as the quickest way to improve vehicle mileage and reduce oil consumption. President Bush and Congress have proposed special tax credits for hybrid vehicles to encourage consumer demand.

But many auto makers have not been so enthusiastic, citing the extra cost of hybrids and the lack of demand among American drivers for high-mileage vehicles. At current U.S. gasoline prices, a hybrid Civic buyer would need roughly 15 years to pay off the extra $2,000 to $2,500 cost of the hybrid system with fuel savings.

Rech and other Honda executives said it was important to sell hybrids to gain experience with consumers and establish the auto maker as a hybrid leader. Rech said Honda's experience with the Insight showed that many consumers still wrongly believed hybrid cars need to be plugged in like electric cars.

MILEAGE TO GO

The hybrid Civic comes as Detroit's Big Three are pouring their energies into fighting proposals in Congress to raise federal fuel efficiency standards from their current levels of 27.5 miles (44.2 km) per gallon average for cars and 20.7 miles (33.3 km) per gallon average for vans, minivans, pickups and sport utility vehicles.

Unlike other auto makers, Honda isn't opposed to an increase in the standards, as long as the increase applies equally to all auto makers and the government gives the companies time to make changes in their vehicles.

It's an easier position for Honda to take, since it already has the highest corporate fuel economy average of any large automaker. Honda sells no full-size pickup trucks or SUVs, and sells no engines in the United States larger than 3.5 liters. By comparison, Ford alone sold some 230,000 7.3 liter truck engines last year.

The new Civic uses a number of tricks to boost its fuel economy. The 1.3-liter gasoline engine shuts down when idling at traffic stops. When the car decelerates, the engine can shut off three of its four cylinders. And the hybrid Civic gets a few aerodynamic improvements to reduce drag.

In addition to price, there are a few other drawbacks. The hybrid Civic drives quietly, but has slower acceleration than regular models. The battery pack takes up some trunk space and makes it impossible to fold the rear seats flat.

Rech said Honda was still debating what its next move into hybrids would be, but Honda has shown off two concept cars in recent months that use hybrid systems to boost performance as much as fuel economy -- including one model designed to produce 400 horsepower and get 50 miles per gallon.

By Justin Hyde