Honda to reveal Prius fighter at Paris auto show

TOKYO — Honda will pull the wraps off its new Prius fighter, a compact five-door hatchback sedan priced from under $20,000, at the 2008 Paris Auto Show in early October.

As yet unnamed, the vehicle — Honda's first dedicated hybrid since the Insight — is known inside the company as the New Dedicated Hybrid Vehicle, or simply the "small hybrid." It will be christened at Paris with a new nameplate, although Honda insiders now dismiss earlier speculation that it might revive the Insight name.

The small hybrid is one of four new gas-electric models that Honda plans to roll out over the next four years, as part of a broad global strategy to boost hybrid sales to 500,000 units by 2012 — about 10 percent of its total sales volume.

Also in the pipeline is a production version of the sporty CR-Z hybrid coupe that debuted as a concept at last year's Tokyo show and is now due to arrive in early 2010; a replacement for the current Civic Hybrid, in late 2010; and a new hybrid edition of the subcompact Fit in 2012.

The small hybrid that's coming next year is intended to be an "entry-level" model that should undercut the price of the Toyota Prius by thousands of dollars. The production version of the Honda hybrid is expected to be formally unveiled in January at the 2009 Detroit Auto Show, when Toyota plans to introduce its next-generation 2010 Prius.

Where the next Prius is moving further upscale in size, performance and price, the Honda hybrid is designed to be one of the most affordable gas-electric models on the market, priced from around $19,000 and delivering superior mileage — as much as 60 mpg or better, according to insiders.

It will be powered by a smaller, lighter version of the 1.3-liter IMA system that is fitted to the Civic Hybrid, along with a continuously variable transmission. A nickel metal hydride battery pack is located beneath the rear floor.

The Honda hybrid is a five-passenger design with compact exterior dimensions but lots of room inside. Its design silhouette resembles that of the Prius, with some styling cues said to be inspired by Honda's new FCX Clarity fuel-cell vehicle. The small hybrid will be slightly taller and wider than the Fit and will borrow a number of chassis bits from the Fit.

The small hybrid will be built at Honda's Suzuka plant in Japan and eventually could be assembled in China as well. Honda wants to build 200,000 units a year of the new car, with about half going to North America and another 50,000 to Europe.

Honda's next hybrid model after that, the CR-Z, will take the company upscale. The production version of the CR-Z, due to reach Honda's U.S. dealers as a 2011 model, may not have any direct competitors. Designed in Europe and built in Japan, it will be priced from around $25,000 and will be fitted with a more powerful version of Honda's IMA system.

What this means to you: Honda still won't be able to catch Toyota, which wants to be building a million hybrids a year by 2012. —