Credit Honda with not giving up easily in what will certainly become a big fight: the sub $15,000 price range category of new automobiles. Currently, only a stripped down Civic competes in this area and I mean stripped: no a/c, basic tranny, no radio! With Toyota’s Scion brand catching on Honda is looking to fight back. A tiny car now on sale in Japan may soon find its way to a dealership in your neighborhood helping to turn the tide for the revered automaker.
So, why the big push in this “cheap” category? Chiefly because automakers know that if young and first time buyers have a very good experience with their entry level cars then more than likely they will stay with the brand as their lives change, i.e., get married, start a family, make more money, etc. This practice has been in place for years, although not as widely emphasized by all manufacturers and to their detriment.
Honda’s long time low price leader has always been the Civic. Introduced to the North American market in 1971, the Civic was the original Honda for the western hemisphere and has been a value leader in its class for some time. However, like the Toyota Corolla, the...
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