|
There has been much
buzz about the introduction of the Accord Hybrid, and if
it sells anything like the Prius
hybrid car, Honda should expect to raise production
quickly. Of course, the Prius is not targeted for as an
affluent segment as is the Accord.
According to Honda, the
Accord Hybrid's target "is an affluent,
well-educated professional of around 50, with a
household income of 100,000-plus." Therefore, the Accord
hybrid will not be expected to be as popular as the Prius.
Of course, the world is
a changing, and hybrids appear more and more to be the
direction of the future of cars.
For the first time
ever, China has introduced fuel-efficiency standards,
"moving to control soaring oil consumption and
ensure foreign automakers share their latest
technology" said the Chinese government according
to an AP wire.
According to the
report, the Chinese standards will be stricter than the
U.S., and are more similar to the requirements imposed
by California on automakers to help fight pollution.
Earlier this month,
China also announced that it would form a partnership
with Toyota to build hybrid cars for the Chinese market.
Ultimately, similar to
California, China's regulations will require 'new cars'
to meet their standards, which will probably be another
slap in Detroit's face.
As Japan continues to
dominate the hybrid market, the transition to meeting
higher fuel efficiency should be much simpler than for
the American Big 3 - still obsessed with SUVs.
SUVs; however, are
about to take another hit. According to yesterday's Wall
Street Journal, "Congress, with the backing of the
Bush administration, now appears to be ready to close a
big loophole that gives small businesses big tax breaks on
those vehicles."
As SUV sales continue
to decline, even after 1000's of dollars in incentives,
their profitability is waning. Moreover, new
regulations, such as California's and China's, are sure
to inspire other states and countries to create the same
kinds of requirements.
Corporate leadership at
the Big 3 better take notice. While their lawyers might
be able to bully U.S. regulations, they probably won't
be able to affect foreign policy.
Times are a changing!
>>
Blog on this subject.
|
