Deep concerns in Japan that the global credit crisis structurally shifted the market in North America towards smaller and less-expensive vehicles led Honda to make major changes in its product plans late last year, likely delaying the arrival of the new Civic past its usual four- or five-year product cycle.
Honda CEO Takanobu Ito didn't provide a time frame for when the next-generation Civic would arrive, but told trade journal Automotive News that the team is having trouble meeting the revised deadlines.
Instead of becoming larger, as originally planned and as all new Civics have done with each new generation, Honda will instead make the car smaller, lighter and more fuel-efficient, while increasing perceived space inside.
The turning point for Honda last year was the collapse of Lehman Brothers in September, and the global credit crisis that followed, which reportedly prompted Ito to re-examine all upcoming product lines, leading to the killing of Honda's planned V-8 and rear-wheel-drive programs. This included an exotic sports car program that was close to its finishing stages, and would have competed with the recently introduced and very pricey Lexus LFA.
Any delay in the Civic could negatively affect the plant in Alliston, Ont., that produces all Civics sold in Canada except the Hybrid. Honda confirmed recently that an Alliston team was already in Japan working on plans for the next Civic, but they refused to provide a timeline for the new model's arrival.
However, the current Civic, going into its fifth model year this fall, still appears to have some sales legs to it; it's on course to remain the best-selling car in Canada for 2009.
The plant ran overtime shifts in September to keep up with strong U.S. and Canadian demand. But that was fuelled by the American Cash for Clunkers program, which rewarded buyers with government cash for trading in their older vehicles for newer ones, and provided an extra $1,000 (U.S.) cash ($4,500 versus $3,500) when buying vehicles that achieved 10 miles per gallon or better than their clunker.
Uncle Sam was basically bribing buyers out of their large SUVs and pickups into more fuel-efficient cars, with 89 per cent trading in a truck, and 59 per cent coming out of the transaction with a new car.
The Civic was the second-most-purchased new vehicle in the program, topped only by the Toyota Corolla, another fuel-efficient Canadian-made compact.
The Civic's design changes and potential delay also has implications for other vehicles built off the Civic platform, including the CR-V and boxy Element.
They and the Civic will become smaller, more fuel-efficient, and less expensive than planned, Honda CEO Ito said.
But there is still a concern here in North America that the move to smaller and cheaper vehicles seen over the summer and with last year's record fuel prices may not be seen again for a while.
"As long as gas is cheap (in North America), people want big vehicles," said Honda Canada PR manager Richard Jacobs.
Infiniti announces electric car plans
The Tokyo Motor Show was perhaps the most green-focused of major car shows yet, so it's perhaps not surprising that Nissan CEO used the show to confirm Infiniti will sell an all-electric vehicle, to accompany the mainstream Nissan Leaf hatchback the company plans to start selling in Canada in the second half of 2011.
Few details were made public about the planned e-Infiniti, except that it will be a stylish, four-passenger high-performance, compact vehicle with zero emissions.
This suggests that it will be a re-bodied version of the Leaf, with a more powerful or higher-capacity battery, rather than a production version of Infiniti's Essence concept, which the brand t introduced earlier this year at the Geneva show.
