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Honda Closes Largest Yet Hybrid Fleet Deal with BA

Honda (UK) has closed a corporate deal to supply more than 100 Civic Hybrids to British Airways (BA), representing one of the largest hybrid fleet contracts in the UK. The Civic Hybrids will make up nearly half of BA’s total company car fleet. The BA contract represents Honda’s largest Civic Hybrid deal to date.

Honda’s second largest Civic Hybrid contract, with IKEA, was agreed in June 2007.

BA selected Honda’s hybrid following a tendering process, during which the short-listed manufacturers were asked to submit a proposal taking into account the carbon emissions throughout the car’s life cycle, from production and delivery, to its use and disposal.

As the minimum requirement, British Airways set a threshold of 120 g/km of CO2 emissions, in order to meet the new band B for road tax. The Civic Hybrid was also selected because its benefits will outlive the lease life and will be passed onto other drivers when the vehicle is re-sold.

The Honda Civic Hybrid has a rated fuel consumption of 61.4 mpg UK (4.6 L/100km or 51 mpg US) and with CO2 emissions of 109 g/km, company car drivers fall into the lowest BIK (Benefit In Kind) tax bracket of 10%. It is also exempt from the London Congestion Charge.

Total sales of Honda’s Civic Hybrid in the UK trebled last year, and already in 2008, corporate sales are up 295% (537 units), compared to the same period in 2007.

Comments

lensovet

wonder what was wrong with the prius....

SJC

Now that Tata owns Jaguar and Rover maybe we will see some hybrids. It is interesting to note the European response to hybrids in 2000. Some were making responses like GM that they were a fad, too expensive and no one would buy them.

That seemed so odd from a group of countries that have paid a lot for fuel for a long time. I do not mean Sweden, but referring more to Germany and the U.K. Prius did not even sell that well in London the first 5 years. BMW sort of pretended that they did not exist.

Charles S

It's Honda own fault why Civic Hybrid plays the 2nd fiddle to the Prius in the US. Now that Honda is finally, truly committed itself to its own hybrid development, in theory, Honda could easily sell and make hybrids at a lower cost, especially in fleet sales.


Aside from Prius being a better hybrid, the biggest obsticle to Honda's hybrids really Honda itself; the lack of commitment to hybrids from the very beginning. In 2000, Honda was doing better with diesels in Europe and the US market was more profitable with trucks. The Insight was just a rush job to beat Toyota in the US market. All Honda wanted to do was make hybrid a premium product, a low-volume niche.

In theory, Honda's hybrid system is less complicated compare to a Prius, thus likely to cost less in a mass manufacturing scenario. Now that Honda have a change of heart, the CR-Z will be the first Honda's effort in a real, mass-production approach to hybrid technology. Since the Civic is already a popular product in Europe, it's probably much easier now for Honda to undercut Prius for a bid in fleet sales.

I think it's really more about money and not about which hybrid is better. Honda needs this fleet contract for more than Toyota right now.

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