


Every year, cars get just a bit more expensive. There was a time, which doesn't seem too long ago, that ten grand and a signature was all you needed to walk out of a dealership as the owner of a brand new car. Today, not so much. In fact, according to J.D. Power and Associates, $15,000 gets you just two-thirds of the choices you had just two years ago. Holding up the bottom of the list is the Chevrolet Aveo, which, along with the base-model Cobalt, makes GM the only American player in the cheap-car sweepstakes. The 2009 Aveo, however, has a higher base price than before thanks to the elimination of the lowest price value model. The Koreans in the form of Hyundai and Kia offer three choices, and the remaining five slots are ably filled by Japanese manufacturers.
While there may be a few more vehicles that have base prices below the $15,000 mark, J.D. Power's numbers actually reflect transaction prices rather than MSRPs. Some vehicles, like the Honda Fit, are able to maintain some driving enjoyment to go along with their low prices, and these cars often command higher prices because of the demand for them.

Much has already been written about Honda's plan to introduce a fleet of new hybrid models to take on Toyota's dominance in the segment. It's strategy includes a new dedicated hybrid model, a sporty hybrid based on the CR-Z concept, and hybridized versions of the Civic and Fit. Yesterday Honda's President, Takeo Fukui, revealed more information about that dedicated hybrid that's destined to take on the Toyota Prius in the global marketplace. While an official name and specific details will come later this year, Fukui did say that it will be a five-door hatchback (like the Prius) and seat five people. It's styling will be inspired by the FCX Clarity fuel-cell vehicle, so expect a clean shape that's slippery through the wind. It will be produced in Japan alongside the Civic Hybrid at Honda's Suzuka factory, and the automaker expects to sell about 200,000 per year around the world, with 100,000 earmarked for North American markets. Honda also claims it has found new ways to reduce weight in the car and also lower the cost of its Integrated Motor Assist technology, though we don't expect any of these hybrids to be full parallel hybrids like the Prius, i.e. able to run on electricity alone.
Altogether, Honda hopes its four new hybrid models will reach global sales of 500,000 per year shortly after they're all on the market around 2010. Bully for them, but Toyota's already said that it will be selling a million hybrids annually by that time.


After a controversial two-year run, the Canadian government has announced their ecoAUTO rebate program will be ended next year. The ecoAUTO plan offered a $1000 to $2000 CDN rebate to owners of new cars that consumed gas at a rate less than 6.5 l/100 km. Although the ambitious plan sounded like an excellent way to reward drivers of frugal transportation, the mathematical line in the sand snuffed those whose vehicles were still very efficient, yet just under the threshold.
One of the most vocal protests came from Honda. Unfortunately for them, their Canadian-market Fit was "unfit" for the rebate, yet the competing Toyota Yaris was approved. It didn't take long for the Japanese automaker to call out the Ottawa government in protest. Honda took their message public, and even offered their own version of the rebate to match the government's offer.
To mend the wounds of this green-rebate-gone-awry, the Canadian government has pledged $250 million to the auto industry for the development and research of environmentally-friendly technologies.



