Honda | Media Newsroom

The recently announced Toyota recall has prompted some customer questions to you, our Honda and Acura dealers, regarding the effect on or applicability to their Honda or Acura vehicles. In fact, Toyota's recall, while serious, has no impact whatsoever on Honda or Acura customers.

American Honda Motor Co., Inc., is not aware of any reports for either Honda or Acura vehicles, regarding the type of failure Toyota is citing as the cause for its recall. Additionally, while we use the same supplier as Toyota for some of our products (as do other manufacturers), we do not use the same components.

As this issue relates to one of our competitors, we will not be making any further comment regarding Toyota's circumstances. Additionally, we will not react in a predatory way toward either Toyota or Toyota customers. I would ask that you and your sales and service teams refrain from comment other than the facts outlined above, and only then, in response to customer inquiries.

Thank you in advance for your cooperation,

John Mendel

There are few calculations more confusing in the auto industry than the statistical ratings used by the government to measure and report on automobile fuel economy. There are adjusted and unadjusted numbers, label values, CAFE (Corporate Average Fuel Economy) ratings, CO2 emissions data and more. These are then re-positioned by various carmakers to claim bragging rights as the most "fuel efficient" car company in America. You've got a recipe for confusion and, potentially, for the misreporting of the facts.

So let's stick to the facts. The U.S. EPA recently released its annual report on fuel economy trends: "Light-Duty Automotive Technology, Carbon Dioxide Emissions, and Fuel Economy Trends: 1975 - 2009," Executive Summary, page VII (November, 2009) Here's what the EPA says:

• "In MY [Model Year] 2008, the last year for which EPA has essentially complete formal production data, [American] Honda had the lowest fleetwide adjusted composite CO2 emissions (and highest fuel economy) performance ..." (This includes both Honda and Acura vehicles.)

This is all very clear. No footnotes. No fine print.

The EPA also recently released "preliminary" data for Model Year 2009. So, why not use MY 2009 numbers? Because the EPA bases its final judgment of fuel economy leadership for any given year on the complete year-end results, and 2009 complete data won't be available until next year. The EPA has stated that it cannot adequately judge fuel economy leadership on preliminary data:

• "EPA has less confidence in the MY2009 data as it is based on automaker projections of production volumes submitted to EPA prior to the start of the 2009 model year. EPA anticipates this data will change for all automakers after the final MY2009 data has been submitted to EPA . . . ." [p. 27].
• "It is impossible to predict whether actual MY2009 fuel efficiency data will be higher or lower than the preliminary MY2009 value." [p. ii];

So, the EPA has made it abundantly clear that it makes little sense for any automaker to determine a fuel economy claim on preliminary data. We agree. And even though EPA says "preliminary MY2009 values suggest that [American] Honda will continue to have the lowest fleetwide CO2 emissions (and highest fuel economy)," we'll wait until EPA provides complete data for 2009.

But let's provide a little additional context.

Looking back: the EPA's very first ranking of America's most fuel efficient vehicles in 1976, had the Honda Civic ranked number one. That means that for more than 30 years, Honda has made fuel efficiency a priority in our products.

Looking forward: fuel efficiency has become a major focus of every automaker. And that is a very good thing. More fuel efficient vehicles are a win-win for customers and society as a whole.

We're thrilled to see it. At Honda, we love nothing more than a good race - especially when everyone ends up a winner.

- Marcos

American Honda welcomes you to the newest addition to Hondanews.com - the Our Perspective media forum. As the name implies, this media forum is where you'll find our views on many topics important to Honda and to our industry with posts from a variety of Honda associates. Look for future postings to include a wide range of discussions on our products, technologies, the environment, safety, and other relevant subjects.

Our goal with this new forum is to expand our dialogue with you the media and to provide context to the news that wouldn't typically appear in a press release or other formal communication. We hope this will provide you with the opportunity to share your own perspectives on happenings at Honda. Only registered media with the ability to download content can make comments, but the entire entry and all comments are viewable by anyone visiting this media Web site.

Another important function of this forum is to provide a convenient resource for all types of on-line communities to reference and potentially begin their own discussions. In the near future, Our Perspective will also be hosted for the general consumer audience on www.honda.com where we will provide convenient links to our social media sites and more. Please feel free to share any comments, questions or concerns. You're more than welcome to use old-fashioned e-mail, or you can post your thoughts here.

- Kurt

In the PR business you have to take your lumps every once in a while. The occasional bad review is not only expected, it's pretty much inevitable. One notable example is the recent Consumer Reports review of the Insight, which essentially is the reason I felt compelled to write this post.

Keeping things in perspective, one bad review doesn't have to spoil the whole bunch. In fact, since the Insight launch, the media reaction and product reviews have been overwhelmingly positive - exceeding even our own expectations. According to a recent analysis by the company that does our media monitoring, since the Insight debuted at the Detroit auto show, there have been 1,124 positive stories, 207 neutral stories, and only 12 negative stories - a favorable mix for sure.

Additionally, Insight has won hybrid comparison tests in major automotive enthusiast publications, including Car and Driver, Motor Trend, and Automobile. It has done so based on fuel economy that consistently exceeds expectations, engaging driving dynamics that separate it from other hybrids, and the unique hybrid value proposition created by its low cost.

The Consumer Reports review - one of the few less-than-positive ones - was a biggie though. Unfortunately, the whole matter became more visible when they aggressively publicized the review with a press release containing a headline and a quote from their chief of auto testing that were apparently designed to be more sensational than the review. No doubt, they have a sharp PR staff that deserves credit for recognizing that there can be more news value in a negative review of an important and highly visible car than there is in a positive one.

I should be clear that we have a lot of respect for the publication. In fact, our research suggests that the demographics of CR readers very closely mirror those of Honda customers. A Honda customer is very likely to be a CR reader and vice versa, so more often than not this has played to our favor.

However in this case, I have to respectfully offer an alternative viewpoint. We designed the Insight to deliver sporty handling with a fun-to-drive hybrid character that would create an engaging experience for the driver. While they criticize Insight's handling dynamics, we contend that we hit our targets and that Insight's handling is one of its competitive advantages. In support of this, we can cite opinions from major, well-respected automotive publications that directly contradict those issued by Consumer Reports:

Car and Driver
"The Insight drives like a Honda, with tight suspension motions, a firm ride, well-connected steering, and a no-fat musculature. Interior sound levels are mild and well controlled, especially at freeway speeds."

Motor Trend
"Is Honda's new Insight Hybrid merely a 7/8th-size Prius that delivers 7/8ths the fuel economy? No, the Insight is, quite simply, more fun to drive."

"Honda worked hard to make the Insight the driver's choice. There is a hollow stiffness to the chassis, but the overall sensation is road feel, not harshness. Steering is light and precise, and the Insight changes direction happily without keeling over as the Prius is wont to do. Throttle and brake response are smoother too: Powertrain engineers focused on keeping the pedal feel and position consistent with the performance of the CVT and brake-regeneration system."

Automobile
"Both the accelerator pedal and the brake pedal have a natural feel and feedback, with none of the weird surging and artificialness that we've seen in some hybrids. The powertrain itself provides linear, predictable power. The electric steering is a bit dead on-center, but then it tightens up nicely. Body control and ride quality are impressive, especially given the fact that the Insight rides on skinny, low-resistance tires to maximize fuel economy."

While Consumer Reports' opinion is highly visible, it's ultimately only the opinion of their editors, and it's in the minority. I'd like to propose that you take a test drive and judge for yourself.

--Sage

It seems that there's been a little confusion out there regarding the price/value equation between the 2010 Insight and the Prius that I'd like to clear up. Recently, I saw a post claiming the price difference between the two cars equipped "as customers want" is only 700 dollars more for the Prius. This was based on an MSRP of 21,300 for an Insight EX, and of $22,000 for a 2010 Prius II, which currently is the least expensive 2010 Prius available.

According to the Power Information Network (PIN), an affiliate of J.D. Power and Associates, the average transaction price of the 2010 Insight in June* was $21,526, while it was $26,436 for the 2010 Prius. "Average transaction price" is the average price paid for a car, including, transportation charges, options and accessories, but not including taxes or fees. So, in this case Prius buyers are paying $4,910 more for the keys to a Prius equipped "as customers want." Generally speaking, the difference will grow even bigger when sales tax is applied. In the world of entry-level vehicles, hybrids or otherwise, $5000 is a big gap, and while it's inevitable that there will be cross shopping between the two cars, we think this suggests that they will continue to attract different buyers.

Like the numbers above provided by PIN, third-party evaluations are a very helpful tool for car shoppers. All car consumers should research sources like J.D. Power, Edmunds and Kelley Blue Book (kbb.com) to help make the right choice. In the case of the Insight's price, the numbers speak for themselves.