LA Auto Show Speech
Speaker: Dick Colliver, executive vice president of American Honda
Motor Co.
Date: January 3, 2002
Good afternoon, and Happy New Year!
I know I'm the only thing standing between you and the Rose Bowl Game, so let's get right to it. The first thing I want to do today is take the wraps off our mystery car. But it's not a mystery to the more than 400,000 people who bought one last year.
Ladies and gentlemen, the best-selling car in America in 2001, the Honda Accord.
Accord sales of more than 410,000 last year topped all other sales, including the all-new Camry.
And thanks in part to the Accord, the Honda Division celebrated the best year in its 29-year history, with sales of more than 1 million and thirty thousand vehicles. In fact, Honda Division sales increased for the ninth straight year.
In the process, the Civic repeated as the best-selling compact car in America for the fifth straight year, with sales of more than 330,000 cars.
Setting a new one-year record was the Odyssey, with sales of 130,000.
And the all-new CR-V, introduced in November, came on like gang-busters, setting records in both November and December and finishing the year with sales of more than 115,000.
Add in the record year by Acura of more than 170,000 vehicles, and you have an all-time American Honda sales record of more than one million, two hundred thousand vehicles.
Now, as we enter 2002, the auto industry has never faced so much uncertainty on what lies ahead in the coming year.
But for Honda, we also enter the year with a tremendous amount of anticipation. During the next 12 months we plan to bring five all-new models to market.
Let me first say a few words about the one vehicle on display here for the first time that won't be going on sale this year, the new FCX-V4 fuel cell vehicle. In the long run, we believe the fuel cell vehicle has great promise. While this vehicle looks identical to the V3 that paced the LA Marathon last year, it has a couple of significant enhancements.
Most important of all, the hydrogen fuel tank has been relocated from the trunk area, to in front of the rear wheels.
Not only does this provide for more trunk storage, it also improves rear crash safety.
We are encouraged by the progress of our fuel cell development program and will begin limited commercial distribution of a fuel cell vehicle in 2003. But in the short term, certainly for the next 10 to 20 years, gasoline will continue to be the dominant fuel. And we're convinced the internal combustion engine will continue to play the key role until fuel cells become more practical and viable.
In the meantime, a hybrid version of the internal combustion engine will be one of the ways Honda addresses the twin challenges of increasing fuel economy and lowering emissions.
It was just over two years ago that Honda became the first company to bring hybrid technology to the American market with the introduction of the Insight.
Now, with the introduction of this new Civic Hybrid, we believe hybrid technology is ready for prime time.
As I mentioned, the Honda Civic is the perennial best-selling small car in America. It is one of the pillars of the Honda brand. To add hybrid power to the Civic lineup is an example of the faith and confidence we have in our hybrid technology.
The Civic Hybrid will be the first hybrid sold in the U.S. to share the same body style and platform as other mass produced models. Unlike the Insight, which is built in a special factory, the Civic Hybrid will come off the same assembly line as other Civic models.
And while other companies continue to talk about future introductions...
this will be the second generation of Honda's IMA hybrid system.
One with significant improvements from the original.
The new electric motor has 30 percent more output capacity than the one in the Insight, but is the same ultra-thin size.
The efficiency of the batteries has also been increased, resulting in reduced energy loss. And the size and weight of both the power control unit and the battery package have been reduced.
The lighter and more compact battery pack and PCU allows them to be located behind the back seat providing for 5-passenger seating and a trunk with more than 10 cubic feet of storage.
We expect the Civic Hybrid to earn EPA ratings of about 50 mpg for both city and highway fuel economy, about a 35 percent improvement compared to other Civic sedans.
As a result, the Civic Hybrid will be the most fuel-efficient gasoline-powered 5-passenger vehicle ever mass-produced.
The Civic Hybrid will have its own unique look, with aerodynamic front and rear styling and special aluminum wheels.
The interior also will be unique to the Hybrid. The focus will be centered on an instrument panel that is very similar to that of the Insight, enabling the driver to easily track useful information including mileage and battery charge level.
The Civic Hybrid is a very refined car. While the Civic is the benchmark against which all other small cars are measured, we believe the Civic Hybrid will become the benchmark against which other Civics are measured. The Civic Hybrid will go sale in April and we project sales of about two thousand a month. Final pricing hasn't been set yet, but it should be in the neighborhood of about $20,000.
Another new member of the Civic Family is the Civic Si Hatchback, which will go on sale in March. And while the sales volume will be relatively low -- about 15,000 a year -- it will play an important role in the Civic lineup, meeting consumer requests for a hatchback model, as well as the return of the performance oriented Si.
The Civic Si has a long history, with its roots dating back to 1984. It has been the leading force in the booming sport compact car segment ever since.
The new Si features contemporary European styling...
and is powered by a new 2.0-liter i-VTEC engine designed to provide more of its power and torque at lower RPM levels for more practical performance.
The fully featured interior includes a dash-mounted rally-style shifter and sport seats.
Final pricing will be announced closer to the on-sale date in March, but look for it to be between 18 and 19 thousand dollars.
It would be an understatement to say we're looking forward to having the Si Hatchback back in the lineup. It is a sporty complement to the current sedan and coupe and responds to the young enthusiasts who are largely responsible for the performance compact car market.
Now moving over to the truck side of things, on Sunday in Detroit we'll take the wraps off the new Honda Pilot. Here's a sneak peak at the pre-production model we'll be showing there.
Designed, developed and built by Honda, the Pilot SUV aims to redefine the segment much the way Odyssey did the minivan market. It offers a highly versatile interior with seating for up to eight-passengers, in combination with class-leading performance, features and functionality &endash; including the largest passenger and cargo hauling capacity in its class. The Pilot will go on sale this summer.
And that brings me to the Model X. We introduced this model to the public last year at the Detroit Auto show and have been testing consumer reaction ever since. This video gives you an idea of the development concept behind Model X.
SHOW VIDEO
I'm happy to announce today that Model X will become a reality. I mentioned we've been testing this concept since we first showed it at Detroit last year.
Reaction has been so positive, we've put it on the fast track and hope to have a model in showrooms about a year from now. In fact, it's been on such a fast track, we don't even have a name for it yet.
But let me ask the two guys you saw in the video, Tim Benner (Senior Manager - Advanced Product Planning) and Eric Schumaker (Exterior Design Manager), to come and give you an update on the vehicle.
(Tim and Eric come on stage and each talks briefly about developments of the past year and their feelings on the decision to build the Model X.)
The production version of Model X will have very similar exterior styling to the concept.
There are some interior changes planned for the production model, but the center-opening swing wide doors will be carried over. These doors provide easy loading and create the perfect atmosphere for a base camp or side-gate parties.
The flat floor will also be retained, providing a large and easy to use storage area -- and even a place to bunk for the night if necessary.
Thanks guys.
You can see we've got a full and exciting year ahead of us. From the Civic Hybrid and Si to the Pilot and the Model X,
Oh, and one more thing.
The Accord. The best-selling car in America won't be resting on its laurels.
It will be all-new for the 2003 model year come September and I can only say it will be the most dramatic new model change for Accord.
So stay tuned.
As you can see, this will be one of the most ambitious and exciting years in our history.
I want to thank you all for coming today. Tim, Eric and I will all be around to answer any questions you may have.
Thank you very much.
End.