LexFather

http://www.businessweek.com/news/201...age-gains.html

By Alan Ohnsman

Jan. 13 (Bloomberg) -- Honda Motor Co., the automaker that has claimed the best U.S. mileage rating for decades, is accelerating engine improvements as competitors such as Hyundai Motor Co. pose a fuel-efficiency challenge.

Hyundai, South Korea’s largest carmaker, in December said it topped Honda in 2009 model year mileage, citing Environmental Protection Agency data. Figures on the U.S. agency’s Web site put Hyundai models at 30.1 mpg in 2009 versus 29.7 mpg for Honda, Japan’s second-largest carmaker.

“It serves as real bellwether to motivate us even further,” said John Mendel, Honda’s U.S. executive vice president, in an interview at the North American International Auto Show in Detroit. “The gauntlet has been thrown down. We’re going to endeavor to maintain our reputation as the most fuel- efficient automaker for 33 years.”

Carmakers are promoting fuel efficiency and vehicles with advanced power trains to attract buyers after 2008’s record high retail gasoline prices and to meet stricter federal fuel-economy rules. The Obama administration is pushing all automakers to increase average fuel economy to 35 mpg to reduce oil consumption and carbon exhaust linked to climate change.

Honda also must respond to an expanding hybrid model line at Toyota Motor Corp. and more efficient engines from Ford Motor Co. and General Motors Co., said Eric Noble, president of Car Lab, an industry consulting firm.

‘Too Late’

“It may be too late for them to reclaim the ‘green halo,’” said Noble, who is based in Orange, California. “It’s been three generations of Prius and dozens of announcements from competitors.”

Honda President Takanobu Ito said he’s pushing company engineers to focus on engine improvements.

“Of course we want the most efficient engines,” Ito told reporters in Detroit yesterday. “Competitors are catching up and I feel pressure from this. I don’t want to lose out.”

Ito and Mendel declined to discuss specific improvements planned for U.S. Honda and Acura models. “We’ll have some interesting things to say fairly soon,” Mendel said, without elaborating. (OH DEAR LAWD NOT MORE INTERESTING THINGS TO SAY....PLEASE JUST DO, DON'T SAY)

Sonata, Accord

John Krafcik, Hyundai’s U.S. chief executive officer, said in interviews in Detroit yesterday and at the Los Angeles Auto Show last month that the company’s new Sonata sedan that goes on sale next month will exceed Honda’s top-selling Accord and other mid-size sedans by using a new direct-injection gasoline engine.

To keep fuel-economy high for all Sonatas, Seoul-based Hyundai also decided not to build a V-6 engine version. Instead for customers seeking more power it will offer turbo-charged, 4- cylinder engine and hybrid versions this year, Krafcik said.

Toyota may also add direct-injection and turbo-charged engines to aid fuel efficiency, Executive Vice President Takeshi Uchiyamada told reporters in Detroit yesterday, without elaborating.

Ito announced in Detroit this week that the company would add the hybrid CR-Z sport coupe in the U.S. by about mid-year and plans gasoline-electric versions of premium Acura models. Honda is also developing a small, battery-electric commuter car, Ito said, without saying when the model will be sold.

Fuel Cells

While the Tokyo-based company, the world’s largest engine maker, has led the industry in developing advanced hydrogen fuel-cell vehicles, it only leased five of the emission-free FCX Clarity cars in the U.S. in each of the past two years.

Honda has also struggled to match Toyota’s success with hybrids, led by Prius, the world’s best-selling gasoline- electric model. Honda’s Insight that was added in the U.S. in 2009 fell short of the company’s initial goal 100,000 units in the U.S. and Canada, with 20,572 U.S. deliveries.

Honda’s U.S. operations are based in Torrance, California.

PhilipMSPT

iTrader: (5)

Betcha it's gonna be a 1L motorcycle engine that's gonna end up in a base subcompact sedan/hatch that will compete with the Ford Fiesta and Chevy Cruze...

whoster

i love that we have the unicorn emoticons.

they're seriously great.

-J-P-L-

Does Honda really think that they own the "green halo"? Ask anyone, and they'll tell you Toyota is that company.

Model for model, Toyota beats Honda's MPG ratings. Honda has claimed to be the most efficient company though because of the overall brand rating in which they don't offer the large vehicles Toyota does.

The Prius doesn't hurt either.

It's true though, Ford, GM, and Hyundai have all passed Honda as well. Honda has made no advancements in recent years. They need to move full force.

spwolf

more competition is better... keeps everyone on their toes.

whoster

it does keep everyone on their toes, all except Honda--which just seems to have sat down, let alone be on their feet...

The G Man

This just goes to show how mis-guided Honda is as a company, does anybody really go out and buy a Hyundai just because their average gas mileage is 30.1 mpg versus 29.7 mpg for Honda. Does the general public even know about these numbers? One of the big reason why companies like Hyundai and Honda's average mpg is so high is that they dont make any work trucks or vans. Honda really should concentrate on engine technology once again, they were once a great engine company. Now they are more of a company of excuses. Oh yea, they need to fired all their designers.

SLegacy99

Exactly! Through limited offering they have better fuel economy. If that's the case, Smart is really the gold standard.

I was laughing at my buddy just yesterday because he was looking at Honda hybrids, because he is a "Honda Man"....apparently a man who prefers an inferior product.


....he is also a loser.

bboarder71

I am his buddy and yes i was looking at several hondas.

I will agree and say toyota has always been the more energy efficient company. I usually laugh at the chevy commercial where they point out the hondas fake title.

GSteg

iTrader: (15)

I'll rejoice the day Honda gets rid of their J-series. Only engine that impresses me from Honda is the k-series. They can actually make good power.

They got to stop relying on ancient dinosaur engines.

The G Man

Am I the only one that remember in the old days, Honda was the king of fuel effciency.

-J-P-L-

As you point out, that was the old days. The best they do now is match the leaders.

LexFather

Went to my thread back here (luxury based) as I was shocked to find out Acura MPG pretty much stunk, especially considering they don't have V-8s or bigger or real 4x4s.

https://www.clublexus.com/forums/car...iscussion.html

Funny but the Chevy ads also opened my eyes to it as I "assumed" Honda was really fuel efficient. Then I find out a big heavy, luxurious RX 450h gets 30 MPG and the small econobox Honda Fit gets 31 MPG. (I know apples to oranges but that is just amazing)

WTF?

We all expected the Insight to be something special and its horrid. We then expected the CR-Zzzzzzzzz to floor us and MPG is WORSE than the Insight.

WTF?

Its great they finally have decided to make a new engine or two but I agree with the analyst that said "too late". While Honda has a huge brand image and a very loyal crowd, competition is so very tough you cannot rest.

MPLexus301

iTrader: (3)

Corrected for you, Ito.

Seriously though...Honda came 5 years late to the "6AT" party, and at this point everyone has moved on to 7ATs and even 8ATs. Their engines are ancient and barely get average MPG numbers.

Fail.

Allen K

iTrader: (4)

Of course we remember, they're using the same engines