Honda Insight a Flop?
Bloomberg reports that Honda has dialed-back its US sales predictions for the Insight hybrid by a third. “First-year Sales of Honda’s gasoline-electric Insight, which debuted at U.S. dealerships in late March, may be between 50,000 and 60,000 units, John Mendel, the company’s U.S. executive vice president, said in a June 11 interview at Honda’s U.S. headquarters in Torrance. ‘I don’t think we’ll get to 90,000.'” (Bloomberg sat on this story for four days?) Apparently, Mendel forgot to explain the discrepancy between expectation and reality—so Hizzoner’s family firm did it for him . . .
“Gasoline prices in the U.S. have fallen 35 percent over the past year, eroding demand for fuel-efficient cars, even as the overall market has plunged 37 percent due to the recession. Toyota has cut the base price of the Prius by $1,000 to compete with the Insight.”
“Hybrid sales in the U.S. fell 38 percent through May to 100,337 units, just ahead of the market’s overall 37 percent drop, based on data compiled by Bloomberg News.”
Official spin please?
“Demand for Insight should pick up later in the year as the recession eases and fuel prices increase,” Mendel said.
Or, dare we say it, not. Oh, and does this tell us anything about the Chevrolet Volt’s prospects?
It also depends on how one feels about high gas prices. I'm not a tree hugger, but I'd rather pay more for gas if the taxes went to my own country rather than some middle eastern nation that hates my country and myself. The less gas I use, the better in this case.