xcel
09-10-2006, 01:10 AM
Demand for subcompact already eclipsing supply. (http://www.dispatch.com/business-story.php?story=dispatch/2006/09/08/20060908-G1-02.html)
Paul Wilson – Columbus Dispatch – Sept. 8, 2006
http://www.cleanmpg.com/photos/data/501/2007_Honda_Fit.jpg
Even if the Fit’s FE is below that of the Civic, high gasoline prices are still a key reason for its popularity.
Want to buy a Honda Fit? Be prepared to wait at least a few months.
With gasoline prices sparking interest, auto dealers in Columbus are having a tough time keeping Honda’s new five-seater in stock five months after its U.S. debut.
"I expected the demand," said Don Smith, general manager of Hugh White Honda. "The problem is, we’re not getting Fits in as fast."
Honda originally wanted to sell 50,000 to 60,000 Fits in the United States during the model year that started in April but since has dropped that to 40,000, said Christie Schweinsberg, associate editor at Ward’s Automotive Reports.
"They realized they weren’t going to have enough."
Honda, knowing smaller vehicles are more popular overseas, has been steering more subcompacts to Asia and Europe, where the Fit is called the Jazz, Schweinsberg said.
Honda has five North American assembly plants, including two in central Ohio, but the hatchbacks are built only in Japan. Honda knows the Fit is popular in the United States and will make sure more are available in the coming years, said Sage Marie, Honda spokesman.
"Certainly, demand is outstripping our initial projections," he said. "That being said, there will be more Fits."
Honda announced plans this summer to build an assembly plant in Greensburg, Ind., that will begin producing vehicles in 2008. Regardless of whether the Fit is built there, the extra capacity is likely to free up production space for the Fit at one of Honda’s other U.S. plants.
Schweinsberg said it’s hard to blame Honda for underestimating the U.S. demand for the Fit. She said no one could have predicted such severe gasolineprice increases.
"The popularity of (the Fit) is a function of what is going on in the world that really hadn’t gelled a year ago," Marie said.
The Fit also is popular because of its features and its reputation as a "very zippy" car, Schweinsberg said. It and other new subcompacts aren’t the stripped-down fuel-economy cars of 25 years ago, and that difference has helped stoke demand.
After a few months, Belinda and Kirk Paisley of Granville gave up on trying to buy a Fit. They bought a Pontiac Vibe this week instead.
"The situation forced us to look at other alternatives," Belinda Paisley said. "We’ve always liked Hondas, but my initial reaction is we like (the Vibe) better."
Anthony Schmidt of Mansfield bought a Fit not long after the car hit showrooms this spring. He traded in his sports car and improved his gas mileage by about 14 mpg.
"My friends didn’t like me very much at first, but otherwise, everyone pretty much understood," said Schmidt, who is working to start a regional Fit owners club. "And it’s very comfortable. That surprised me. I’m pretty tall. But when you’re sitting in it, there’s plenty of room above my head."
The Fit gets 38 mpg on highways, which actually is slightly lower than Honda’s Civic. With that in mind, the Fit’s popularity might not be rooted only in fuel economy, said Jim Erwin, sales manager at Roush Honda.
"People are looking to spend $14,000 to $16,000, and maybe those Honda buyers in the past had to settle for a Korean car," Erwin said. Fit buyers have ranged from new college graduates to families who want a "get-around car" in addition to a larger vehicle for trips, he said.
Even if the Fit’s fuel economy is slightly below that of the Civic, high gasoline prices are still a key reason for the hatchback’s popularity, Schweinsberg said.
"A lot of people don’t compare fuel economy," she said. "A lot of people go into a showroom and say, ‘There’s a small car. I want to save money on gas.’"
Paul Wilson – Columbus Dispatch – Sept. 8, 2006
http://www.cleanmpg.com/photos/data/501/2007_Honda_Fit.jpg
Even if the Fit’s FE is below that of the Civic, high gasoline prices are still a key reason for its popularity.
Want to buy a Honda Fit? Be prepared to wait at least a few months.
With gasoline prices sparking interest, auto dealers in Columbus are having a tough time keeping Honda’s new five-seater in stock five months after its U.S. debut.
"I expected the demand," said Don Smith, general manager of Hugh White Honda. "The problem is, we’re not getting Fits in as fast."
Honda originally wanted to sell 50,000 to 60,000 Fits in the United States during the model year that started in April but since has dropped that to 40,000, said Christie Schweinsberg, associate editor at Ward’s Automotive Reports.
"They realized they weren’t going to have enough."
Honda, knowing smaller vehicles are more popular overseas, has been steering more subcompacts to Asia and Europe, where the Fit is called the Jazz, Schweinsberg said.
Honda has five North American assembly plants, including two in central Ohio, but the hatchbacks are built only in Japan. Honda knows the Fit is popular in the United States and will make sure more are available in the coming years, said Sage Marie, Honda spokesman.
"Certainly, demand is outstripping our initial projections," he said. "That being said, there will be more Fits."
Honda announced plans this summer to build an assembly plant in Greensburg, Ind., that will begin producing vehicles in 2008. Regardless of whether the Fit is built there, the extra capacity is likely to free up production space for the Fit at one of Honda’s other U.S. plants.
Schweinsberg said it’s hard to blame Honda for underestimating the U.S. demand for the Fit. She said no one could have predicted such severe gasolineprice increases.
"The popularity of (the Fit) is a function of what is going on in the world that really hadn’t gelled a year ago," Marie said.
The Fit also is popular because of its features and its reputation as a "very zippy" car, Schweinsberg said. It and other new subcompacts aren’t the stripped-down fuel-economy cars of 25 years ago, and that difference has helped stoke demand.
After a few months, Belinda and Kirk Paisley of Granville gave up on trying to buy a Fit. They bought a Pontiac Vibe this week instead.
"The situation forced us to look at other alternatives," Belinda Paisley said. "We’ve always liked Hondas, but my initial reaction is we like (the Vibe) better."
Anthony Schmidt of Mansfield bought a Fit not long after the car hit showrooms this spring. He traded in his sports car and improved his gas mileage by about 14 mpg.
"My friends didn’t like me very much at first, but otherwise, everyone pretty much understood," said Schmidt, who is working to start a regional Fit owners club. "And it’s very comfortable. That surprised me. I’m pretty tall. But when you’re sitting in it, there’s plenty of room above my head."
The Fit gets 38 mpg on highways, which actually is slightly lower than Honda’s Civic. With that in mind, the Fit’s popularity might not be rooted only in fuel economy, said Jim Erwin, sales manager at Roush Honda.
"People are looking to spend $14,000 to $16,000, and maybe those Honda buyers in the past had to settle for a Korean car," Erwin said. Fit buyers have ranged from new college graduates to families who want a "get-around car" in addition to a larger vehicle for trips, he said.
Even if the Fit’s fuel economy is slightly below that of the Civic, high gasoline prices are still a key reason for the hatchback’s popularity, Schweinsberg said.
"A lot of people don’t compare fuel economy," she said. "A lot of people go into a showroom and say, ‘There’s a small car. I want to save money on gas.’"