Posts Tagged ‘Honda’

June 17, 2008

Honda rolls out new zero-emission car

By TOMOKO A. HOSAKA, Associated Press WriterMon Jun 16, 11:31 AM ET

Honda’s new zero-emission, hydrogen fuel cell car rolled off a Japanese production line Monday and is headed to Southern California, where Hollywood is already abuzz over the latest splash in green motoring.

The FCX Clarity, which runs on hydrogen and electricity, emits only water and none of the noxious fumes believed to induce global warming. It is also two times more energy efficient than a gas-electric hybrid and three times that of a standard gasoline-powered car, the company says.

Japan’s third biggest automaker expects to lease out a “few dozen” units this year and about 200 units within three years. In California, a three-year lease will run $600 a month, which includes maintenance and collision coverage.

Among the first customers are actress Jamie Lee Curtis and filmmaker husband Christopher Guest, actress Laura Harris, film producer Ron Yerxa, as well as businessmen Jon Spallino and Jim Salomon.

“It’s so smooth,” said Harris, who played villainness Marie Warner on the hit TV show “24″ and was flown over by Honda for the ceremony. “It’s like a future machine, but it’s not.”

The FCX Clarity is an improvement of its previous-generation fuel cell vehicle, the FCX, introduced in 2005.

A breakthrough in the design of the fuel cell stack, which is the unit that powers the car’s motor, allowed engineers to lighten the body, expand the interior and increase efficiency, Honda said.

The fuel cell draws on energy synthesized through a chemical reaction between hydrogen gas and oxygen in the air, and a lithium-ion battery pack provides supplemental power. The FCX Clarity has a range of about 270-miles per tank with hydrogen consumption equivalent to 74 miles per gallon, according to the carmaker.

The 3,600-pound vehicle can reach speeds up to 100 miles per hour.

John Mendel, executive vice president of America Honda Motor Co., said at a morning ceremony it was “an especially significant day for American Honda as we plant firm footsteps toward the mainstreaming of fuel cell cars.”

The biggest obstacles standing in the way of wider adoption of fuel cell vehicles are cost and the dearth of hydrogen fuel stations. For the Clarity’s release in California, Honda said it received 50,000 applications through its website but could only consider those living near stations in Torrance, Santa Monica and Irvine.

Initially, however, the Clarity will go only to a chosen few starting July and then launch in Japan this fall.

California Gov. Arnold Schwarzenegger has called for a statewide network of hydrogen stations, but progress has been slow.

The state has also recently relaxed a mandate for the number of zero-emission cars it aims to have on roads. By 2014, automakers must now sell 7,500 electric and hydrogen fuel cell vehicles, a reduction of 70 percent.

Spallino, who currently drives Honda’s older FCX and was also flown in for the ceremony, said he will use the Clarity to drive to and from work and for destinations within the Los Angeles area. The small number of hydrogen fuel stations is the “single limiting factor” for fuel cell vehicles, he said.

“It’s more comfortable, and it handles well,” said Spallino of Redondo Beach. “It’s got everything. You’re not sacrificing anything except range.”

The world’s major automakers have been making heavy investments in fuel cells and other alternative fuel vehicles amid climbing oil prices and concerns about climate change.

Although Honda Motor Co. was the first Japanese automaker to launch a gas-electric hybrid vehicle in the U.S. in 1999, it has been outpaced by the dominance of Toyota’s popular Prius.

Toyota announced in May that it has sold more than 1 million Prius hybrids, while both the Honda Insight and the hybrid Accord have been discontinued due to poor sales.

Honda also plans to launch a gas-electric hybrid-only model, as well as hybrid versions of the Civic, the sporty CR-Z and Fit subcompact.

Toyota has announced that it would launch a plug-in hybrid with next-generation lithium-ion batteries by 2010 and a hydrogen fuel cell vehicle later in Japan later this year.

U.S. carmaker General Motors Corp. plans to introduce a Chevrolet Volt plug-in electric vehicle in 2010. It also introduced a test-fleet of hydrogen fuel cell Equinox SUVs.

Honda has no plans for a plug-in electric vehicle. President Takeo Fukui said he does not believe current battery technology is good enough to develop a feasible car.

The company has not revealed how much each car costs to make, and it is unclear when, or if, the car will be available for mass-market sales. Takeo has set a target for 2018, but meeting that goal will depend on whether Honda can significantly lower development and assembly costs as well as market reaction to fuel cells.

June 9, 2008

Cost of gas, soccer-mom image doom minivans

Sales are crashing and economic recovery likely won’t reverse trend

updated 7:48 p.m. ET, Sun., June. 8, 2008

DETROIT - Asked recently how the U.S. minivan market has been faring, Nissan’s Dominique Thormann had a concise answer.

“It collapsed,” said Thormann, a senior vice president of Nissan North America.

While the rapid decline in pickup and sport utility sales has been grabbing the headlines, minivan sales have also taken a tumble, falling 20 percent in the first five months of this year.

And unlike trucks, which could rebound once the construction industry picks up, it’s unclear if minivans have a future in the U.S. market or if they’re being killed off by crossovers and the stodgy taint of the soccer mom image.

“The future of the segment is up in the air,” said Tom Libby, senior director of industry analysis for the Power Information Network, a division of J.D. Power and Associates. Libby said the advantages of minivans — the sliding doors and height — has been eroded by the negative image of minivans and consumer preference for SUV-like styling.

The slump reflects what’s going on in the wider U.S. market. Overall auto sales were down 8 percent through May, and big vehicles like minivans took the brunt of it because of high gas prices. Large pickup truck sales fell 21 percent, while large SUVs were down 32 percent.

It doesn’t help that families — minivans’ target audience — have been particularly impacted by rising gas and food prices, falling home values and more difficulty in borrowing money, said Rebecca Lindland, an auto analyst for the Waltham, Mass.-based consulting company Global Insight.

“Everything that a family needs is more expensive right now, and so the last thing they’re looking at is do they need to replace their Honda Odyssey,” she said.

But even before the economy took its toll, families were migrating away from minivans. U.S. minivan sales peaked at 1.37 million in 2000, 17 years after Chrysler introduced them. They’ve been falling at a steady rate since then, to 793,335 last year. This year, sales are expected to fall below 650,000 for the first time since 1986.

One reason is the rise of crossovers, which offer similar space but more car-like handling. In March through May of 2004, 12 percent of minivan owners trading in their vehicles bought a crossover. That rose to 26 percent in the same period this year, according to the Power Information Network. Crossovers accounted for just 4 percent of the U.S. market in 2000; they now account for 19 percent.

Another reason for minivans’ decline is that some players have left the market. General Motors Corp. will stop making minivans by the end of this year, while Ford Motor Co. quit producing the Ford Freestar and Mercury Monterey in 2006.

Thormann said Nissan has no plans to exit the market for now, despite a 34 percent drop in sales of the Nissan Quest so far this year. Thormann said that first, Nissan needs to figure out where large SUV buyers are going and whether they will choose to downsize to minivans.

“The fact is that the minivan hit a particular need. Then, that same need was satisfied — because fuel was cheap, because affordability was high — with an SUV,” he said. “But once you’re stuck up there and you’re thinking, ‘Oh, wait a minute, do I need to be a little bit more rational and do I need to come down a notch without sacrificing much utility?’ Does the minivan become an alternative to that or is it the crossover?”

Perhaps the biggest gamble in the shrinking market was made by Chrysler LLC, which spent $1.4 billion on the redesign of its two industry-leading minivans, the Chrysler Town & Country and Dodge Grand Caravan. Despite the investment and new features such as swiveling seats, Caravan sales fell 35 percent through May. Town & Country sales were down 13 percent.

Chrysler remains bullish on minivans and says sales have dropped for several reasons. First, the company discontinued the cheaper, short wheelbase version of the Caravan because it couldn’t accommodate the new features, a decision that priced some buyers out of the market. The 2007 Dodge Caravan had a suggested retail price of $19,055; the 2008 Grand Caravan starts at $21,930.

Chrysler also says it significantly cut the low-profit sales it used to make to rental, corporate and other fleets. Non-fleet sales were up 23 percent this spring, the company says, and many buyers are choosing options like backseat televisions that improve Chrysler’s margins.

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