Unless they're going to be introducing an EV mode in the new hybrid, I don't see it making a huge splash. Toyota & GM are both pursuing plug-ins with extended EV range for the 2009/2010 timeframe.

It looks like it will be in Europe first, and at about 25-28K Euros:

Production Honda CR-Z hybrid coupe to hit Europe first - Autoblog

This is truly very hilarious.

The "small family hybrid" is to be EPA sized below the current Civic as a sub-compact and also in price.
I find it very interesting that they would offer a comparative opportunity with the Prius in light of this. One of the few things they got right in their blurb is that the IMA system will be a close derivative of what's currently implemented on the Gen 2 HCH. But that is all.

Cheers;

MSantos

I wish Honda well, but Toyota, Ford, and Nissan hybrids have a large advantage in the power-split device. It beats conventional transmissions for efficiency, performance and reliability.

One seemingly smart move is to introduce a hybrid model without an ICE equivalent. The latest news is is showing that the hybrid version of cars with an ICE equivalent are generally not doing well. Most of the examples were priced much higher than their ICE borthers and most are not willing to pay the difference in this economy. Vehicles like the Prius don't have to have their price compared to a less greener and cheaper version of itself.

Makes sense... but while still dwarfed by the Prius, the Camry is doing very well as demonstrated by the latest monthly North American sales. Also, Honda is reportedly selling every single HCH they make and there are still the ever chronic waiting lists being reported.
If I recall correctly, the growth for either model has been in the 50+% mark over last year's figures and their sales volume seems to be hampered primarily by production capacity.

Cheers;

MSantos

Fact is, Toyota whupped Honda with the Prius. They have captured the hybrid market with a state of the art product. Honda merely modified the Civic with an electric-assist. Prius will be tough to beat unless Honda gets better or cheaper. Though there's still plenty of innovation ahead for electrics. Plenty of market out there for everybody.

What isn't clear to me from this announcement is whether this is the new one being built in Indiana which was supposed to be Fit-sized or is it a third one?

If it is going after the Prius it's probably in retaliation to Toyota's announcement that it may have a 'baby' Prius coming out soon that will compete against the HCH.

Any thought that a "Prius like Honda" wouldn't sell well is rather short sighted. I suspect they would sell like proverbial hotcakes. Just like the Prius. The Honda lovers would be all over them. There are still a LOT of people who are brand loyal. They may even take sales away from Toyota if Honda put nicer seats in them.

As far as Honda not having a "good" hybrid powertrain, their HCH seems to be doing just fine, thank you. Its' economy is not very far behind the Prius.

Now, I stopped into my local Honda dealership, and was surprised to find they had a few Accord Hybrids left from last year. One was in the showroom! Tempting, as a luxury go-car. If only I had more money than brains.

I guess it's a nice compliment to Toyota that Honda is attempting to catch up.
Honda fans aside, The Prius has been out (in Asia) since 1997, has evolved over those 11 years, and will not be eclipsed by a single new offering from anyone trying to catch up, which should result in continued strong sales for Toyota.

By the time, any manufacturer catches up to the Prius, Toyota should be one or two iterations ahead, hopefully, although I do expect the first (apples to apples) competitor to Toyota will be Honda. (Their Honda Accord is pretty nice and gets great gas mileage but is not a true hybrid).

No worries for Toyota yet, but think they are sitting on their haunches savoring this meal? I really doubt it. (As I hear it, a new model will be introduced in 2010 or 2011.)

American auto manufacturers are still building and advertising gas guzzling SUV's and over powered luxury cars. In the current race, they should come in as expected ....last.

ZC1

I guess I don't see it as a competition between Toyota and Honda. Toyota gets an A for the Prius and Honda will probably get a passing grade too -- it is the big 3 that are failing. Honda and Toyota will be selling cars that were designed from the ground up as low-emission, high FE cars while most other automakers are designing extremely inefficient vehicles and spraying them with green spraypaint because by improving the FE a little bit. Granted, I am like many others that believe the Prius is really a mid-term solution, but at least Toyota and Honda are trying and doing.

It's the design itself, not the implementation. The setup in HCH does indeed hold its own. But the ability to take full advantage of battery augmentation and the business aspect of fleetwide rollout are not as "good".

.

I say bring it on Honda. The more competition the better it is for us. Plus the more hybrids sold the less gas we will use as a nation. Maybe with so much pressure from Honda and Toyota, GM and Ford will start being serious about FE cars and stop making those pigs.

The way I and many others see it:

Any new hybrid whether a Full Hybrid from Toyota or a Power Assist hybrid from Honda represent a measurable opportunity for lower emissions and a lesser use of petrol. Splitting apples on the account of architectural differences becomes tiresome after a while especially when considering the individual merits as well as the combined benefits of having two manufacturers offering world class quality products.

So either company will get a BIG thumbs up from me if they demonstrate good environmental performance on their fleet offerings. The larger their fuel efficient offerings, the better. And, if the upcoming Honda hybrids meet the Civic hybrid's Tier2/Bin2 rating then that means more green options for a greater number of consumers. And what is wrong with that?

Cheers;

MSantos