GM Adds Hybrid Incentives, Honda Will Bring New Hybrid To Paris

For a short time, GM will offer a $4,000 bonus on the 2008 GMC Yukon and Yukon XL, including its hybrid version. In addition, GM will offer $2,000 customer cash on the Yukon Hybrid, for a total incentive of $6,000. The incentive package is part of GM's plan to increase sales of its trucks, SUVs, and crossovers.

The price of hybrid technology is seen as a huge barrier to improving the sales of hybrid vehicles. The customer demand is present, but more than half of all customers polled in a recent survey said that they were not willing to pay a premium of $5,000 or more for hybrid technology in a new vehicle.

With this in mind, Honda will introduce its so-called "Prius killer" at the 2008 Paris Auto Show in October. The company has not publicly disclosed the name of the vehicle, but has indicated that it will cost about $19,000 and will achieve a fuel economy rating of about 60 mpg. According to industry analysts, the Honda hybrid will be five-door hatchback that looks very similar to the Prius. It also resembles the styling on the recently-introduced FCX Clarity.

The underlying technology is a reengineered version of the 1.3L Integrated Motor Assist drive, the continuously variable transmission and a few other components found in the Honda Civic and Fit models. The new hybrid operates on NiMH batteries that are stowed under the passenger compartment floor. The unnamed hybrid is the first of several new models and redesigns that are expected to hit the Honda line between now and 2012.

Source: GM Inside News, Wired