Honda says it is developing a new design for a small hybrid passenger car that will be ready for the 2009 model year, according to the Detroit News.
Honda will turn a profit on the new design if it can sell 200,000 or more of the cars that will effectively be replacing the Insight.
The new 5-passenger vehicle could be a success if they could price it at less than $18,000. Many people have avoided hybrids because they are too expensive (starting at around $23,000), so a cheaper hybrid could attract a new audience. The debate about the cost effectiveness for consumers will continue, but as gas prices approach $3 per gallon, the argument for hybrids gets much stronger.
