North American International Auto Show Speech
Speaker: Dick Colliver, executive vice president of American Honda
Motor Co.
Date: January 6, 2002
Good afternoon, and Happy New Year!
I'd like to take one final look at last year, a quick look ahead at what 2003 holds, and then get to the reason why we're here today, the introduction of Honda's new Sport Utility Vehicle, the Pilot.
The Honda Division is coming off its best year ever. Led by the Accord, which returned to its position as the best-selling car in America, the Honda Division recorded the best year in its 29-year history, with sales of more than 1 million and thirty thousand vehicles.
In the process, the Civic repeated as the best-selling compact car in America for the fifth straight year, with sales of more than 331,000.
Setting a new one-year record was the Odyssey, with sales of 131,041.
Just last month we celebrated the opening of the new Honda Manufacturing of Alabama plant which should improve the availability of the Odyssey, which remains re-hot, three years after its introduction.
Finally, the all-new CR-V came on like gang-busters, setting records in both November and December, its first two months on the market, and finishing the year with sales of more than 118,313.
Add in a record year by Acura with sales of more than 170,000 vehicles, and you have an all-time American Honda sales record of one million, two hundred thousand vehicles.
Now, as we enter 2002, the auto industry has never faced so much uncertainty as to what lies ahead in the coming year.
But for Honda, we also enter the year with a tremendous amount of excitement and anticipation. During the next 12 months, the Honda Division is planning to bring five all-new models to market, our most ambitious year ever.
The first of the new models to arrive will be the Civic Si, which goes 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 market.
Another new member of the Civic family will be Civic Hybrid.
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.
With the introduction of this new Civic Hybrid, we believe hybrid technology is now 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.
And while other companies continue to talk about future hybrid 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 good sized trunk.
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, both inside and out, with aerodynamic front and rear styling, special aluminum wheels and an instrument panel similar to the one in 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 on 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.
Now moving over to the truck side of things, I announced last week at the Los Angeles Show that the Model X, the concept vehicle that debuted here last year, has received the green light for production.
Response has been so strong, it has been put on the fast track and will go on sale in 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.
The production version of Model X will have exterior styling very similar to the concept. There are some interior changes planned, 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.
And that brings me to the Honda Pilot. This is a vehicle that takes dead aim at what we believe many of today's customers are looking for in a SUV. Not too big, not too small, and packed with innovative features and world class performance, versatility and value. Let me show you.
SHOW VIDEO
Ladies and gentlemen, Frank Palcuh, chief engineer for the Honda Pilot.
(Frank will come on stage, pull the sheet off the Pilot, and say a few words)
Thanks Frank.
Now if you look at Honda's growth in the light truck market over the past several years, you'll see that light trucks have a played a key role in our continued growth. We expect the Pilot to redefine the segment much the way Odyssey did the minivan market.
You can see why we're excited about the coming year. The Civic Si, Civic Hybrid, Pilot and 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 changes ever for Accord. So stay tuned.
Frank, Tom Elliott and I will all be here the next couple of days to answer your questions, so let me invite you up now for a closer look at the new Pilot.
Thank you very much.