Tuesday, June 21, 2011

Honda's Blue Skies for Our Children: Rallying Cry Still Rings True

Honda's Blue Skies for Our Children: Rallying Cry Still Rings True

June 20 2011

Honda has adopted a global environmental slogan -- Blue Skies for Our Children -- to inspire our company to achieve new targets we have established to reduce CO2 emissions from our products and the operations that produce them. These words arouse strong emotions in Honda engineers, and take me back to a time four decades ago when the same phrase served as the rallying cry for Honda's first effort to tackle a challenging environmental issue.
I joined Honda as a young engineer in 1976. What attracted me, as with so many Honda customers and fans, was a brand that showed a can-do spirit in creating something the rest of the auto industry argued couldn't be done – a vehicle with cleaner emissions and high fuel economy that was also fun to drive.
This vehicle was the Honda Civic – and it had something else that was truly revolutionary -- CVCC engine technology, for Compound Vortex Combustion Controlled. That's a mouthful of complex engineering, but what CVCC helped create is simpler -- a lean burn engine that made Civic the first car to meet the stringent tailpipe emissions standards of the U.S. Clean Air Act without the need for after treatment of the exhaust. The Civic CVCC was also #1 on the U.S. Environmental Protection Agency's (EPA) very first list of the most fuel efficient vehicles in America.
Based on his own belief in the importance of advancing mobility to address the issue of environmental sustainability, Honda founder Soichiro Honda pulled our company out of Formula One racing in 1969 in order to devote Honda's full engineering resources to developing advanced environmental technologies. He then challenged Honda engineers to create a cleaner-burning engine to address air pollution – which was then the most serious environmental sustainability issue facing the automobile industry.
Honda engineers were reading reports about the serious impact pollution would have on the health of children. A group of doctors in Japan published a report about high levels of lead in the blood streams of children. The Club of Rome, founded in Italy in April 1968 by a small international group of academics, scientists, government and industry leaders, focused global attention on negative environmental consequences, forecasting limits to human expansion within less than 100 years if no major change in society occurred. In 1970, Congress passed the 1970 Clean Air Act, creating stringent new emissions standards and the U.S. government created the EPA.
Mr. Honda saw this as a great way to compete against more established companies. But Honda engineers suggested that their real motivation and goal was to ensure "Blue Skies for Our Children," in other words, to ensure the future of mobility and the health of the planet for future generations. This phrase became the team's rallying cry in the effort to find and develop technology that could improve air quality.
Mr. Honda was proud that his engineers had looked at this challenge as more than a competitive challenge. With a great deal of passion and energy, the team of Honda engineers addressed the challenge of sustainable mobility. And this led to the breakthrough with the CVCC engine that powered the Honda Civic. When I learned of these events, it helped deepen my appreciation that the purpose of our technology was to help people and society. That certainly made Honda a company I wanted to contribute my best efforts to.
In the ensuing years, Honda continued to advance its engine technologies. Over the past four decades, we led the global auto industry in meeting a series of increasingly stringent tailpipe emissions requirements, starting with the first gasoline-powered Low Emission Vehicle (LEV) in the hands of consumers, sparking an era of fundamental improvements to air quality. Of course, we were proud to be first, but Honda's strategy for reducing emissions was something of our gift to the world. We provided the auto industry with a practical and economical pathway to reducing exhaust emissions on a broad scale that no one thought possible. At the same time, we have been a consistent leader in fuel-efficiency, topping fuel-economy rankings for 22 of the past 36 years
Today, the challenge of environmental sustainability is much broader than air pollution – encompassing numerous energy and environmental issues, including the reduction of greenhouse gas emissions (primarily CO2) that contribute to global climate change and the transition from fossil fuels to renewable forms of energy, among other issues.
But I am excited that Honda's environmental vision to pursue the joy of mobility and a sustainable society where people can enjoy life continues to be inspired by the original rallying cry of Honda engineers – something that Honda associates throughout our company embrace on a daily basis. Once again, our effort to achieve a challenging target to reduce CO2 emissions is guided by our mission to leave "Blue Skies for Our Children."
Ben Knight
Vice President
Honda R&D Americas, Inc.

Thursday, June 9, 2011

Get your free trade-in apprasial @ DCH Honda of Lemon Grove

A Good Time to Trade in That Gently Used Car
Used-Vehicle Prices Hit Record Highs; No New-Car Smell Necessary With Strong Demand for Fuel-Efficient Models

That three-year-old car sitting in the driveway may not seem so exciting anymore, but to some car dealers it could be gold.
Informed shoppers with well-maintained cars to trade in have an unusual opportunity to take advantage of what industry analysts say is a record peak in used-car prices. Resale and trade-in values for late-model vehicles in good condition have been rising all year as demand has outstripped supply, particularly for fuel-efficient models.
Demand for late-model used cars is soaring thanks to a sluggish economy, high fuel prices and a supply shortage of new cars. WSJ's Joe White explains to Kelsey Hubbard why car dealers are eager to get their hands on used vehicles.
Among the forces driving up used-car values is a shortage of many popular Japanese models due to production slowdowns following the March earthquake. And the sales collapse during the 2008 and 2009 financial crisis means fewer two- and three-year-old cars are available.
The National Automobile Dealers Association last week raised values again on many small- and medium-size cars in its latest Used Car Guide, which is widely used by dealers when deciding what to offer for cars taken as trade-ins.
A one-year-old Honda Civic that NADA's Used Car Guide valued at $14,275 in May is now estimated to be worth $15,950. "The same car," says Jonathan Banks, NADA's executive auto analyst.
KBB.com, the Web home of the Kelley Blue Book used-vehicle-pricing franchise, says a three-year-old Toyota Prius is worth, on average, $17,750 as a trade-in, up $6,050 from the value of a three-year-old Prius a year ago.
The market isn't booming for all types of vehicles. Large sport utility vehicles, such as a Ford Expedition or Chevrolet Tahoe are down less than 1% from a year ago, according to NADA's guide. Still, they are up nearly 5% from the start of the year.
Honda Motor
Late-model, mid-size luxury cars—a segment that includes the Mercedes E-Class and the BMW 5-series—are worth about 6% more on average than a year ago, according to NADA.
"We have seen extremely strong pricing," says Jeremy Meyer, national manager for Audi's U.S. certified pre-owned sales operation. And "consumers are willing to pay those higher prices," he says.
Manheim Consulting, an arm of the big Manheim auto-auction business, has for years published an index of used-vehicle values. In May, that index, using a scale with a baseline set at 100 for January 1995, was 127.8—a record high.
For consumers, this is now a game of arbitrage and information gathering. Prices for many new vehicles are up, but not as much as values for in-demand, late-model used cars.
"The best case scenario is that you have a trade-in that is somewhat gas efficient, and you are ready to trade for a larger vehicle," says Jesse Toprak of Truecar.com, an auto-shopping and data site.
For people who have a leased car that's close to the end of its term, now is the time to figure out whether that car is worth more than the residual value assigned in the lease contract.
For example, a 2008 BMW 3-series has an average residual value of about $17,450, but a trade-in value of close to $20,000, according to data compiled by Truecar.
NADA's Mr. Banks says anyone with a leased car that's due to be returned should investigate the car's market value—using the online NADA guide and shopping sites such as KBB.com, Edmunds.com, Cars.com or Ebay. Then be ready to bargain with the dealer to get a higher value than the one stipulated in the contract.
"Don't just hand over your keys," says Mr. Banks.
Realizing the extra value in a leased vehicle can be tricky, however. Selling a leased car to another individual could require buying it from the leasing company, then reselling it, and possibly paying sales tax.
Sergio Stiberman, chief executive of LeaseTrader.com, a site that enables the exchange of auto leases, says the easiest way is to use the difference between the purchase-option price written into the lease contract and the car's current market value as equity in a trade-in. The dealer can then work out the transaction with the leasing company and resell the car for a profit.
Dealers are stepping up efforts to snag high-quality used cars, while eyeing their inventories to make sure they don't get caught with too many vehicles at the top of the curve.
At Group One Automotive, a big Houston-based dealer chain, used-car managers are scouring Craigslist, and emailing past customers to find more of the cars that are selling best. But the company is keeping its used-car inventory at or below 30 days' supply.
"We have to have rational exuberance," says company spokesman Pete DeLongchamps.
Will used-car prices come back to earth? Most likely, though telling when is educated guess work, not science. Gasoline prices are edging down, which could cool demand for used hybrids and rejuvenate interest in second-hand SUVs.
Japanese car makers say they are ramping up production as they work out the problems getting critical parts from suppliers damaged by the earthquake. Once their factories are rolling, industry executives and analysts expect Toyota Motor Corp. and the other big Japanese brands will come out swinging with discount deals to get back the market share they've lost. The cheaper new cars get, the more likely used-car prices will moderate as well.
A longer-term factor in the current scarcity of late-model used cars is that so few cars were leased during the credit crisis and recession of 2008 and 2009. Higher sales in the past year will mean more supply for the used-vehicle market of a 2013 or 2014.
credit wsj

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Wednesday, June 8, 2011

Honda Civic 2012 DCH Honda Lemon Grove

Auto Makers Sweeten the Recipe for Small Cars

Goodbye, Hand-Crank Windows and Hello, iPod Docks; Car Buyers' Interest in Compacts Rises Along with Gas Prices


The cheap-looking, cramped, "econobox" car is dead.
Auto makers are reinventing small, fuel-efficient cars for American drivers, just in time for another bout of angst caused by gasoline prices of $4 a gallon and up in many cities and forecasts that oil prices will rebound from their recent dip.
The new crop of small cars aim for 40 miles per gallon on the highway, while borrowing technology, styling ideas and creature comforts from luxury cars.

Heated rear seats? You can get them in a Hyundai Elantra. Rain-activated wipers and a rear-view camera? Available on a Ford Focus "Titanium" model. Voice-activated navigation, Bluetooth phone connections and built-in iPod docks? Yes, on the 2012 Honda Civic and other new models in the class.
The evolution of the economy car comes at a price. Someone who hasn't shopped for a compact in the last five or six years could be in for a jolt upon learning that a Hyundai or a Honda could cost more than $20,000.
But for that money, you get a car that is as far advanced from the beige 1982 Toyota Starlet I bought new to beat the gas-price crunch of the early 1980s as that quintessential econobox was from a Mercedes-Benz of its day.
"You've got content on this vehicle that you had to go buy a European luxury car to get," says Robert Parker, group marketing manager for small cars at Ford Motor Co.
Ford offers a dual-clutch, six-speed transmission on the Focus—a gearbox that delivers the fuel economy of a manual shifter without the requirement to manually change gears. "That was a supercar transmission five years ago," Mr. Parker says.

When I bought my Toyota Starlet, I fit the image of the economy car buyer. I was young, poorly paid and grateful merely to have a reliable car that sipped gasoline—never mind the tiny engine, hand-crank windows and lack of prestige conveyed by the car's boxy, hatchback profile.
Today, the average credit score of customers purchasing the redesigned 2011 Hyundai Elantra compact is 716—well within the range considered "good"—and average incomes are about $71,000 a year, compared to about $60,000 a year for the previous model, says John Krafcik, president of Korean auto maker Hyundai Motor Co.'s U.S. marketing arm.
"The single hottest model is the Elantra Limited with the NAV package," Mr. Krafcik says, referring to the top-of-the-line car with an in-dash navigation system that is sticker-priced at about $22,000. Ford's Mr. Parker describes a similar pattern for the 2012 Focus and its smaller cousin, the Fiesta.
Mike Jackson, chief executive of car retailer AutoNation Inc., says the response to the new small cars shows that consumers are willing to pay more for technology and innovative designs.
"These are vehicles people are proud to own," he says.

Honda Public Relations
The 1974 Civic started the cars expansion on the U.S. market.
I recently spent weekends in the 2012 Elantra and the just-launched 2012 Honda Civic to experience the dramatic evolution of the econobox.
The 2012 Civic is the ninth generation of the car that made Honda's reputation in the U.S. market. From 1973 to 1979, the tiny Civic and its ground-breaking "CVCC" engine, which met then-new U.S. clean air standards without a costly catalytic converter, put the Civic at No. 1 in the ranking of most-fuel-efficient cars just as oil embargoes and gas rationing were scaring consumers out of their Detroit gas guzzlers.
The styling of the Civic from 2006 to 2011 represented a bold step for Honda. The company turned away from a conventional "three box" design (the three squares represent the trunk, roof and hood) to what Honda calls "mono-form design" with a downward sloping hood, an arcing roof line and a split-level dashboard.
From 10 paces, the 2012 Civic's exterior looks a lot like the popular outgoing model. But inside, Honda has repackaged the seating and the cockpit to provide more rear-seat legroom and width at the level of passengers' shoulders.
Honda made other changes under the skin. The car is 7% lighter. A new electronic-steering system is linked to a stability-control system to help prevent skids and keep the car centered on the road. On the roads around Washington, D.C., a new Civic EX handles crisply, and its 140-horsepower, four-cylinder engine and five-speed automatic make for adept handling of merging and lane changes.
Better yet, the standard Civic's fuel efficiency is rated at 28 mpg in the city and 39 on the highway, an improvement in both measures. A special Civic HF model is rated at 41 mpg on the highway. There's also a Civic Hybrid, with a lithium-ion battery, rated at 44 mpg in the city and on the highway.