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Why Honda Is Doubling Down on Hybrids | NY Auto Forum · Auto Collabs

• 0:00
  We're here at the New York Auto Forum. I'm here with Lance Wulfer.
• 0:02
  Um, we are going to talk about Honda, we're gonna talk about Acura, we're gonna talk about consumer demand, manufacturing, sales, EVs, all of that in about five minutes. I hope you're ready. [laughs] I guess so.
• 0:12
  [laughs] Sounds like a lot. It is a lot- Yeah... but you can handle it, uh, because you do a lot in your day-to-day. Can you tell us about your role, uh, with Honda? Sure.
• 0:19
  I'm the vice president of automobile sales for American Honda, so I'm in charge of sales and distribution for the Honda and Acura brands. Okay. Okay, so you- So just a few dealers under your purview. Yeah.
• 0:28
  A few challenges come across your desk, and only the hard ones get to you. Sure. Okay. Okay? Let's talk about [laughs] let's talk about some of the hardest challenges we have right now. All right.
• 0:36
  Um, one of the things that are a big topic of conversation here in the news, EVs. What are we doing with EVs? What is Honda doing with EVs in the future pipeline? We hear a lot of things.
• 0:45
  We see headlines, partnerships, all that, but what's, what's the trajectory?
• 0:49
  Well, we recently made an announcement about a strategic shift for us on some products that were coming with the Honda 0 Series and the Saloon, as well as the Acura RSX.
• 0:59
  And we made that shift because of all the changes that we've seen in the marketplace, from, A, government regulations and support with, uh, some of the incentives they were providing- Mm-hmm...
• 1:09
  and also what you saw from incentives on charging infrastructure.
• 1:12
  So while it's great for an EV shift if the consumer's ready to make that transition, but in the market that we're seeing today with less government subsidies and the infrastructure a little bit behind where some of the supply was, we made that strategic, strategic shift to cancel those vehicles in the United States- Mm-hmm...
• 1:30
  so that we can focus where the consumer is, which is looking for great value in a hybrid or a petrol vehicle to be able to fit their needs and, and really help them as they move into the future.
• 1:40
  But we still have an EV with the Prologue. Mm-hmm. And we've done well in that marketplace, but certainly we experienced, like many manufacturers or pretty much everyone, a big shift in the direction towards EVs.
• 1:51
  You know, we're, we're in New York City right now, and, uh, the number one Prologue dealer, you probably know his name, Brian Benstock. Sure.
• 1:57
  Um, and we- he would always joke that, you know, the value of that vehicle when it was being sold was hard to ignore, even for people who live in New York City. Sure.
• 2:05
  They used to joke, if you buy a Prologue at Paragon Honda, you get a 500-foot extension cord with it so you could string it out from your apartment building. Yeah.
• 2:12
  Um, but when I've seen that vehicle, it seems like there's a popular, um, a popular following of it. Sure. People who get them love them. Mm-hmm.
• 2:19
  And now when they get out of that Prologue, what are they more likely going to be steered toward? Well, I think we're seeing, you know, people who leased it primarily. Yes.
• 2:27
  So it's about a three-year product cycle for a lease. Mm-hmm. And we'll start to see some people return in the next couple of years.
• 2:33
  But for Honda, I think that that Prologue three-year cycle, there'll be some opportunity for them with our future releases that we're gonna bring, and we've talked about Mibe, our president, was talking about some of our future hybrids with the two-motor hybrid system V6 that's gonna be arriving in some of our D segments towards the end of the decade.
• 2:51
  That'll be a nice transition for those consumers. But, uh, I think that's one of the great options that we'll have for them. I don't like to get too far into future product- Mm-hmm...
• 2:59
  but we're confident that those consumers will have a great home- Mm-hmm... in the Honda and Acura lineup. You mentioned what you're doing here domestically. Is the strategy different abroad when it comes to EVs?
• 3:08
  Well, yeah. We have a EV which is from the 0 Series, the Alpha, which is gonna be available in Japan and India, that continues.
• 3:16
  And our EV investments as we look at our global business will continue to be part of our strategy as we move forward. So it's, it's- And it's-... it almost seems like a timing issue.
• 3:25
  I think that there's- Market timing... opportunities as we grow. It's still, right, 6, 8% of the market in the US, and there's still opportunity there.
• 3:30
  That's why the Prologue is a good fit for us here, and we see that maybe the transition is not at the pace that the regulation and some of the, uh, tariffs, uh, excuse me, not tariffs, I mean, uh, the incentives- Mm-hmm...
• 3:43
  from the government were supporting. We still see some opportunities as we move into the future regarding EVs. Yeah, it's one of the things we were talking about from the main stage- Yeah...
• 3:51
  is just we're, we're living through decisions that were made- Yeah... three, four years ago, uh, by a different administration. And, and the real goal now is to say, how do we- Mm...
• 3:59
  understand what decisions are being made today- Right... so we can properly plan in the future. Yeah. You, you get a lot of feedback from dealers because, you know, you, you spent a lot of years on the road- Yeah....
• 4:08
  and a lot of years walking in and out of showrooms. Right. Um, what do, what do you feel like dealers are asking for at, at the top of the list right now?
• 4:15
  What, what are they, what are the requests or the, like, help us with this requests? Sure.
• 4:19
  It's all about affordability for the dealer and how they can have a vehicle the consumer's really looking for at the price point that they can afford in this market and this environment.
• 4:28
  And we've seen some escalation of prices of vehicles over the last number of years, and o- overall consumer price index, as particular I think in '21 and '22, has driven overall costs up.
• 4:39
  So from a dealer standpoint, it's about I need value in the vehicle at really the price point the consumer's looking for, and they need that flexibility from our production to be able to supply what they need.
• 4:49
  And we've got lines that can do ICE or hybrid, and you look at the Accord or the Civic or the CR-V, where we've got both in the lineup for those, uh, models, we can balance what the consumer's looking for.
• 5:02
  Maybe a petrol's a little more affordable for that consumer who doesn't drive enough that that gas savings makes sense for them.
• 5:08
  So they're looking for in their individual market that we've got the right trim for their market inside that model lineup, and it varies greatly of what you might see a need in Florida versus what you need in Montana.
• 5:19
  Ah, yes. Yeah. All right, uh, last question. I saw this really cool trailer- Okay. Yeah... that had a Honda badge on it. Tell us what- Base Station. Base Station. Yes. What a name. Tell us about the Base Station.
• 5:28
  Well, I'm excited about this, 'cause I was a camper as a kid. My family, we went everywhere, and this is a great way to democratize camping, because it's really innovative for Honda.
• 5:38
  It can be towed by a CR-V petrol, so that's unusual, gives a lot more, um, you know, accessibility for- Right... consumers as a trailer, and it really will allow us to further enhance our relationship with the customer.
• 5:51
  And what we've been working on is enhancing our light truck lineup and showing the consumer the capabilities and ruggedness of our lineup, and this outdoor experience that they can have with a Honda product would really expand that.
• 6:04
  So it could create a great relationship with the consumer and, and create more of that opportunity where we have not just automobiles.
• 6:11
  You know, we've got lawnmowers that they can experience, all the way up through jets, and this just is another way to connect- Motorcycles... with consumers. Jets, yes.
• 6:18
  Yeah, for us, it's about loyalty and lifetime, you know, loyalty with the customer. So when, is the Base Station available this year? Well, currently, we haven't, um, it's a prototype that we've shown and discussed.
• 6:28
  Yeah. So as far as the, uh, future, we'll, we'll disclose that- What are, what are the, what are the key features?... soon. Some of the key features. Well, towability is really- Towability, right.
• 6:35
  You can park it in your garage,
• 6:38
  and it can be used both, you know, at a camping site to be plugged in, or we'll have the ability for you to utilize some battery capacity that it has to run everything about the vehicle- So it's, it's-...
• 6:48
  at, at the camping... it's a towable power station as well almost.
• 6:50
  It's, it, well, it creates the opportunity to have a great experience with it with modular items that you can add, a shower unit or a cooking unit- Oh, that's great... or different things. Yeah. That's great.
• 6:58
  It's funny, we're seeing that, uh, come even, uh, what Amazon, or not Amazon, but what they're doing with Slate- Mm-hmm... that try- the modular function of it- Yeah...
• 7:05
  say, like, oh, we can make it very affordable- Mm-hmm... and then we can also make it very fancy- Yeah... depending on what modules you add on. It's very customizable for whatever you need from a camping standpoint.
• 7:13
  So it's pretty exciting, and I'm interested, I'll tell you that. Oh, I'm, I'm super interested. Yeah. Lance, thank you so much for giving us- Yeah...
• 7:18
  a few minutes and, uh, spending so much time on the front lines- Oh, it's great to see you... answering questions. Yeah. Thank you.