Back on the first of January of this year, Honda's hybrid tax credits began their slide down towards zero due to the fact that the automaker passed sixty-thousand hybrid sales. While you can argue with the reasoning behind the credits in the first place along with the arbitrary number of people who will get them, but the rules are what they are. So, starting on July 1, the tax credit for any Honda hybrid vehicle will be halved yet again, bringing the available credit to just one-fourth of the original level.

As of today, the Honda Civic hybrid gets a credit of $1,050. From July 1 to December 31, that credit will be $525. Don't complain too much, though, as the credit will officially run out on January 1, 2009. Ford, General Motors and Nissan have yet to hit the magic sixty-thousand number, so the full credit still applies for those manufacturers. Toyota hybrids are no longer eligible for any credit at all, as it has sold way too many Priuses to qualify any longer.

[Source: FuelEconomy.gov]

With the success that Toyota has had with its Prius hybrid sedan, you could be forgiven for forgetting that Honda actually beat them to market here in the states with the Insight. For whatever reason, though, the Insight never became the green-bearer that Honda had hoped. Still, the name is not associated with any negativity, so Honda might be considering reviving it for its upcoming dedicated hybrid model. We applaud this idea and hope it turns out to be more than just a rumor.

Honda's new hybrid model should more directly compete with the Prius as it will be sport a four-door body style and be easily identifiable as a green vehicle. Expected to use a 1.3 liter engine along with the Integrated Motor Assist which Honda uses for all of its hybrids, early estimates for fuel mileage are in the 50-55 mile per gallon range. Much of the structure is said to be derived from the Civic, which could account for its expected price of under $19,000. Also expected are nickel metal hydride batteries which would help keep pricing low. With rumors such as these, we'll be hard pressed to wait until its expected debut at next year's Detroit Auto Show, which, incidentally, is when Toyota will unveil its next-gen Prius. Game on.

[Source: Auto Observer]

Last fall at the Tokyo Motor Show, Honda announced its plans to introduce a new dedicated hybrid drive vehicle in 2009. The new hybrid would the first dedicated hybrid from Honda since the original Insight ended production in 2006. At his mid-year press conference, CEO Takeo Fukui revealed that Honda would in fact introduce two new dedicated hybrids next year along with a hybrid version of the new Fit. The first of the hybrid-only models will be a five seat, five door hatchback with styling based on the look of the FCX Clarity fuel cell car (pictured). The second new hybrid will be a coupe based on last year's CR-Z concept which will be great news to fans of the long-departed Civic CRX.

To make all of this happen, Honda has developed an updated version of their Integrated Motor Assist (IMA) hybrid system. The revised IMA will significantly reduce both the weight and cost of the system, allowing it to be applied to more vehicles. Honda is expanding and adding a second IMA production line at its Suzuka, Japan factory (where the Civic hybrid is produced) to build the new hybrid models and bringing the capacity to 250,000 hybrids. Between the two new hybrids, the Fit and the Civic, Honda hopes to have 500,000 annual hybrid sales within the next couple of years. Thanks to theRookie for the tip!


[Source: Honda]
All photos ©2007 Sam Abuelsamid / Weblogs, Inc.

While many other car-makers (with the notable exception of Toyota) are jumping on the lithium ion bandwagon for new hybrid models, Honda will stick with nickel metal hydride for now. Honda President Takeo Fukui told Automotive News that lithium ion batteries are not yet reliable or durable enough for high volume applications. When Honda debuts a new dedicated hybrid model early next year to take on the Prius, it will continue to use nickel metal hydride batteries.

Honda hopes to top 200,000 annual sales with its new hybrid model, a car that is expected to be priced below the current Civic hybrid. Honda has chosen to use a lithium battery in its FCX Clarity fuel cell car, but those will be very low volume initially and much more expensive. The continued use of nickel probably has as much to do with cost as anything else at this point. Given Honda's price and volume targets, there is probably no lithium battery available right now to the meet the need. According to Fukui, the new model is being engineered to allow for a running change to lithium when the batteries do meet the company's specifications.

[Source: Automotive News - Sub. req'd]

Hybrid car shoppers will have more choices than ever before in 2009 when Honda releases their new Prius fighter and the CR-Z hybrid sports car. Toyota has also publicly said that their next-generation Prius will go on sale in '09. Honda hopes to sell 100,000 of their dedicated hybrid family sedan in North America, and hopes to double that number when worldwide sales are tallied. Details remain sketchy, but as we've reported before, the CR-Z model is separate from their hybrid family sedan. They hope to price the sedan between the Fit and the Civic Hybrid.

The CR-Z is intended to be a sporty hybrid, and the weight of the battery is a big concern. Honda COO Takanobu Ito was interviewed at the Tokyo Motor Show and declined to comment on whether Honda plans on a lithium ion battery for their new hybrid models, but that would make a big dent in the weight problem.

Related:

• It's not just the FCX; the CR-Z is entering production soon as well

[Source: Auto News (sub. req'd)]

In March, Honda unveiled the Small Hybrid Sports concept (above). The big deal with this car is that it would be offered only as a hybrid - every time you see one on the road, you know it's a hybrid car. This is the same realization you get when you see a Prius driving by. There is no diesel or non-hybrid version of the Prius, and this instant identification has helped Toyota sell bunches of the popular car. In a new article about the show-off factor of hybrids, Newsweek calls this "Prius envy." As one person interviewed for the article says, "If I'm driving a hybrid, I want people to know it."

Toyota obviously has a huge lead in this fight, but Honda is working hard on a comeback, Newsweek says (and we've been reporting here for a while), and other automakers are gearing up, too. Toyota, for its part, wants to move the Prius brand even further forward, creating an entire line-up of Prius-badged vehicles.

[Source: Keith Naughton / Newsweek, thanks to Dan K.]

After the rather dismal sales of the current generation Accord hybrid, Honda has apparently decided not to offer a hybrid version of the new 2008 Accord due this fall. Honda will focus the hybrid applications on smaller cars like the Civic and the new hybrid-only model they have coming for 2009. Larger models like the Accord will instead use Honda's new fifty-state diesel engine that is coming in 2009.

When the hybrid Accord was introduced in 2004 the IMA system was paired up with the V-6 engine instead of the smaller four cylinder. The more expensive Accord was marketed as more of a performance upgrade than an efficiency improvement which proved to be a tough sell. The new self contained emission control system that Honda has developed will not require any Urea injection unlike the BlueTec system developed by Mercedes Benz.

[Source: GreenCarCongress]

As Jeremy wrote a few days ago, Honda is thinking about a new dedicated hybrid model that would sell for under $25,000. Automotive News (subs req'd) yesterday brings us more. This new model should be on the lots in mid-2009, with an ambitious 200,000 produced each year. This is separate from the introduction of Honda's hybrid sports coupe, which should come a few months earlier and which will look somewhat like the Remix concept that was unveiled in LA last fall and is pictured above. The new mid-price hybrid will be available in markets around the world, Ken Keir, managing director of Honda UK and senior vice president of Honda Motor Europe, told Automotive News. I think it's a safe bet that this vehicle will sell better than the Insight.

[Source: Automotive News via Autoblog]

Remember the Honda Insight? I'm sure you remember it, but, what do you think of when you hear the name? Compare the public perception of the Toyota Prius to the Honda Insight for a moment, and you will see where I am going with this. Honda would like to capture some of that green image back. As it stands now, Honda is probably the greenest automaker, and they have the highest average fuel economy of all the major automakers, but Toyota often comes to peoples minds when they think of an automaker trying to have a positive impact on the environment. I am not suggesting that Toyota should not be considered a green automaker at all, what I am saying is that Honda deserves more credit for their Insight than they seem to get. Regardless of whether you agree with that assessment or not, Honda would like to capitalize on the fact that they were first on the market in the United States with a hybrid vehicle. They believe that one of the reasons that the Prius outsells their own hybrid models is because it looks different than their other models, and it is a dedicated model of its own. Honda might just go that route again with a replacement for the Insight, with the goal of stealing some sales from Toyota. The new model would likely sell for less than $25,000 and be added in addition to Honda's existing hybrid Accord and Civic.

Here is a refresher in case you forgot all about the Insight...

[Source: USA Today]

Honda president Takeo Fukui has denied newspaper reports that Honda hybrids will be built a new Indiana factory that opens in 2008. Sources say the Civic will be built there, but all Fukui said was that Honda will build small vehicles with 4-cylinder engines. Honda currently makes the Civic Hybrid but has announced it will build a smaller hybrid vehicle in 2009. The automaker will also introduce diesel engines to American consumers. In other Honda news, Fukui said the company's engineers will focus on profitable cars while a new subsidiary takes over development of minicars for the Japan market.

Related:

• Honda CEO speech presents green initiatives

[Source: Kae Inoue & Tetsuya Komatsu / Bloomberg]

Two big announcements from Honda recently concerning what the company has in store for the future. As we noted yesterday, the company says ethanol is not efficient, and doesn't see the biofuel as part of its future strategy. So, what is? A new hybrid in, maybe, 2009, and third-generation hydrogen fuel cell vehicles.

The hybrid, hinted at at the company's 2007 lineup introduction, will be a "high-volume seller with a price and body-size below the current Civic Hybrid", according to Kicking Tires. KT figures this hybrid may get better miles per gallon than the Civic Hybrid. As for the shape, Honda said it will have a "unique body style", so we'll just have to guess and wait.

As for the third-generation fuel cell vehicle, it will be unveiled in Los Angeles at the LA Auto Show in December. The 3rd gen powertrain will be put into the still-in-development FCX, Honda told Edmund's Inside Line. The FCX is a five-passenger luxury sedan unveiled last year. This powertrain won't be the mass-market version, but it's a step closer, the company told IL. Honda had said they plan on producing the FCX for the market in about three to four years.

Related:

• Honda says no to ethanol, says it's not efficient

[Source: Edmunds and Kicking Tires]