Honda Redoubles Efforts to Boost Fuel Efficiency Amid Growing Competition

Takanobu Ito, the CEO of Honda Motor Co., is prioritizing fuel efficiency as Ford Motor Co. and Hyundai Motor Co. challenge its leading position in North America. Ito has put on hold the launch of a revamped Civic compact until it meets his expectations for size and fuel economy. Honda's U.S. fleet averages 23.6 mpg, while Hyundai and Toyota Motor Corp. come in at 23.4 and 23.2 mpg respectively. To meet U.S. regulations, Honda aims to raise its fleet average to 37.4 mpg, a 50% improvement from its current 26 mpg.

Key Takeaways:

• Honda's CEO, Takanobu Ito, has put the launch of a revamped Civic compact on hold due to concerns over its size and fuel economy.
• Honda's U.S. fleet of Honda and Acura 2009 models averaged 23.6 mpg in the U.S. Environmental Protection Agency's assessment of industrywide fuel efficiency.
• Hyundai Motor Co. was second in the survey with an average of 23.4 mpg, followed by Toyota Motor Corp. with 23.2 mpg.
• Honda plans to unveil a hybrid version of the Fit later this year and is researching electric cars, but favors hydrogen-powered cars as the ultimate zero-emission vehicle.
• John Mendel, head of Honda's U.S. sales operation, stated that Honda's fleet must average 37.4 mpg to meet U.S. requirements.
• The company aims to achieve a 50% improvement in fuel efficiency, from about 26 mpg to 37.4 mpg.

Statistics:

• Honda's U.S. fleet of Honda and Acura 2009 models averaged 23.6 mpg in the U.S. Environmental Protection Agency's assessment of industrywide fuel efficiency.
• 23.4 mpg - Hyundai's average fuel economy in the same industrywide survey.
• 23.2 mpg - Toyota Motor Corp.'s average fuel economy in the same industrywide survey.
• 20.5 mpg - Ford's fleet average, ranking them seventh in the industry.
• 37.4 mpg - Honda's target fleet average to meet U.S. requirements.
• 26 mpg - Honda's current fleet average fuel economy.

Sources:

• Bloomberg News
• Takanobu Ito, CEO of Honda Motor Co.