Honda to miss U.S. sales forecast?

[rickaren]

Honda’s hybrid Insight may miss U.S. sales forecast

Posted on Friday, December 4th, 2009 at 2:16 PM EST. (Employee News)

Honda Motor Co.’s Insight hybrid may fall 33 percent short of its U.S. sales goal as cheap fuel, the economic slump and competition from Toyota Motor Corp.’s Prius undermine demand for the model, Bloomberg reported.

First-year sales of Honda’s gasoline-electric Insight, which debuted at U.S. dealerships in late March, may be 50,000 to 60,000 units, said John Mendel, U.S. executive vice president for Japan’s second-largest carmaker, the story said. “I don’t think we’ll get to 90,000,” he said in a June 11 interview at Honda’s U.S. headquarters in Torrance, Calif., Bloomberg reported.

Gasoline prices in the U.S. have fallen 35 percent over the past year, eroding demand for fuel-efficient cars, even as the overall market has plunged 37 percent due to the recession, the news service said. Toyota, Japan’s largest automaker, plans to cut the base price of its new Prius by $1,000 to compete with Insight, the story said. (Bloomberg)