Honda said it will cut excess costs associated with the hybrid system used in its new Civic by a third within 5 years, as it phases out the gasoline-powered version in some markets including Japan. According to Bloomberg, the additional cost of using a hybrid system to run Honda’s Civic compact car will fall by a third to 200,000 yen ($1,702) each, as development costs are halved, President Takeo Fukui said today. Honda is relying on hybrid versions of the Civic and Accord, its two best-selling models, to compete with Toyota’s Prius as record gasoline prices spur demand for vehicles that burn less fuel. Honda will also soon start selling its Fit compact car (shown right) in the U.S. next year and expects monthly sales of 4,000 to 5,000 units in the first 12 months (see also: our report on the Fit). The Leftlane Perspective: Recently, there has been some criticism of hybrids suggesting they don’t save much money, and only provide a “feel-good factor.” Reduced pricing of hybrids would help address these concerns. [via]
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