Honda To Challenge Prius With a Dedicated Hybrid Model

Honda learned from Toyota's success with the Prius that hybrid customers want their decision to drive a hybrid to be visible, so the company is planning a dedicated hybrid model that will feature its own unique styling rather than simply being a hybrid-powered version of an existing model, according to Dan Bonawitz, vice president of corporate planning and logistics for American Honda Motor Co. Inc.

The new hybrid-specific model will be the previously announced car that will slot in below the Civic Hybrid in price, he said. Honda has said that the car will debut in 2009.

Before rolling out its Civic and Accord hybrids, which have never enjoyed the success of Toyota's distinctive Prius, the company surveyed consumers about their opinion on the need for a separate hybrid model, Bonawitz explained. "They broke 50-50," he said. "But in the marketplace, the Prius went one way and we went the other."

Stung by this change in consumers' motivations, Honda changed course. "Now buying a hybrid is very much about making a statement," Bonawitz said. "Obviously, this is leading us to bring a new hybrid to market that is uniquely styled." The new car, while lower in price than the Civic Hybrid, will still be a family car, and will not be a tiny commuter car like the Honda Insight, he added. Despite the car's low price, Honda will not lose money on it, he said. "It will not be a loss leader."