Insight to be under $20,000

Honda Insight

Honda Motor Co. announced that it is aiming at pricing its new Honda Insight at under $20,000 for the American market, and that if sales exceed the stated goal of 100,000 in the first year, it will consider building the car in the United States. Sales of hybrid vehicles in the U.S. actually fell 9.9% in the U.S. from 2007 to 2008, mostly due to the severe credit crunch and mass layoffs of American workers in the fourth quarter.

Hybrids accounted for 315,761 of the total cars sold in America in 2008, which comes to right around 2.4% of the total. The Toyota Prius starts at $22,000 in the U.S. Honda hopes to gain an edge by undercutting that price, but it won’t be easy. In Japan, a new Honda Insight currently starts at about $23,365.00. The Japanese have been hurt by recent trends in currency exchange rates, which make their products less competitive price-wise in the U.S. than they once were. Building the Insight on American soil would help offset some of that, and would also bring welcome jobs to a flailing economy.