Auto blog

Honda CEO says we shouldn't expect any new sports cars

It wasn't so long ago that Honda was known for its sporty two-door models, with models ranging from the Civic del Sol to the Prelude and from the Acura Integra and RSX to the Honda S2000. But look at its range today and all you'll see are the Civic and Accord coupes. Honda has essentially let competitors like the Scion FR-S/Subaru BRZ and Nissan 370Z take the place it once claimed as its own. But if you were hoping Honda would fight back with a new coupe or convertible of its own, we're afraid you're going to have to downgrade those hopes to pipe dreams.
While in Japan ahead of the Tokyo Motor Show, Autoblog had a chance to sit down with American Honda CEO Tetsuo Iwamura (pictured at right). When we asked about the potential for a new sports coupe or convertible in the Honda or Acura lineup, he pointed to the current Civic and Accord coupes - not to mention the upcoming new NSX - but said that Honda has no replacement for any of the aforementioned models (or a rival for the FR-S or 370Z) in the pipeline, saying only that the company is monitoring potential demand.
What Iwamura-san did note was that he's a personal fan of the new S660 roadster (pictured above) set to be unveiled tomorrow, and he is pushing (or at least hoping) that it will come to North America. Given that he's head of both Honda's American office and its global automobile operations, one might think that the only person he would have to persuade is himself (well... himself, and potential buyers), but the sporty droptop looks to be about kei-sized, which sadly suggests that it may be too small for American tastes and perhaps not designed with US crash-test standards in mind anyway.

Average new-vehicle transaction price hits a whopping new peak in December

Elevated prices for products and higher borrowing rates led to record high transaction prices for new vehicles in December, with the average cost in the U.S. rising to a record $49,507, according to data from Kelley Blue Book released today. The report notes that ATPs — average transaction prices — have climbed above suggested retail prices — MSRPs — for more than a year. Sales volumes were up in December on a year-over-year basis by more than 5%, a situation Kelley attributed to improved supply. Overall sales for 2022, however, were off 8% year over year. “The transaction data from December clearly indicates overall prices showed no signs of coming down as we headed into year-end,” said Rebecca Rydzewski, research manager of economic and industry insights for Cox Automotive. “Luxury prices fell slightly in December, but non-luxury transaction prices were up. Truck sales were particularly strong last month, and with many trucks selling for more than $60,000, a new record was all but inevitable.” Industry analysts claim the most obvious headwinds in the new car market are generated by higher interest rates, forced by the Federal Reserve's rate hikes intended to tame inflation, and by generally limited inventory. A recent report from J.D. Power showed that the average monthly payment for a new vehicle loan in December was $718, up $47 from a year ago. But 16% of consumers in December took out loans with monthly payments of over $1,000. Consumers think vehicles, and electric vehicles especially, are way too expensive. Fortunately, manufacturersÂ’ incentives, all but extinct in the past two years, are returning, especially in the electric-vehicle and luxury market, the Kelley data suggest. Plus, "With the new tax credits on the way, electric vehicle ATPs will drop lower for qualifying vehicles,” Rydzewski said. Non-luxury brands, such as Honda and Kia, showed particularly strong performance in December, with the average price paid at $45,578 — a record high and an increase of $994 month over month. Meanwhile, the average luxury buyer paid $66,660 for a new vehicle last month. Mercedes-Benz and Land Rover showed the most price strength in the luxury market, transacting between 2.6% to 6.5% over sticker price. But luxury brands Audi, BMW, Infiniti, Lexus, Lincoln, and Volvo showed the least price strength with some discounting in effect, selling 1% or more below MSRP in December, according to the survey.

Honda boss says Chinese drivers don't want green cars

According to The Wall Street Journal, Honda CEO Takanobu Ito believes that China's nascent car-buying demographic isn't all that interested in hybrid cars - at least not yet. The emissions story doesn't resonate with them, and certainly not for the higher purchase premium such models usually carry. What they really want, Ito believes, is reliable, affordable cars that fit their needs. When it comes to Honda sales, the numbers would appear to jibe with his thoughts: Honda sold 598,577 vehicles in China last year through its two joint ventures, yet just 542 of them were hybrids - not even a tenth of a percent. However, Toyota sold 840,500 cars in China last year, and two percent of that total, 17,300 units, were hybrids, which is closer to the still-piddling three-percent ratio of sales that Toyota posted in the US last year.
Honda offers the Insight, Fit Hybrid and CR-Z in China and plans to make components for its Integrated Motor Assist hybrid system there from next year, the hope being it will reduce the cost of hybrid cars for local buyers. That was one part of the plan Honda laid out last year to popularize its IMA system in China. Other initiatives include the introduction of a new hybrid system for mid-sized and large vehicles and a plug-in hybrid. Among the four new vehicles Honda showed during this weekend's press day for the Shanghai Motor Show (including the Concept M minivan pictured above) there was not a single hybrid among them.