Honda Gives Up On Natural Gas Cars, Shifts To A New Generation of Hybrids, Plug-Ins And Fuel Cells

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Joann Muller Forbes Staff

Honda Motor has always been at the forefront of green car technology with vehicles like the Honda Insight hybrid and the FCX Clarity hydrogen fuel cell. The innovative Japanese company led the way into natural gas-powered vehicles, too, selling its Civic GX in the U.S. since 1998, long before fracking unleashed an abundance of cheap natural gas in this country.

The problem is, nobody followed.

Besides taxicabs and corporate fleet customers, who love natural gas for their trucks and delivery vans, average consumers turned up their noses at the hassle of refueling with natural gas.

“We tried and tried and tried,” said John Mendel, Executive Vice President of American Honda. But with the cost of natural gas now on par with gasoline, he said, convenience became a factor. “The customer wasn’t willing to compromise.”

DETROIT, MI – JANUARY 13: John Mendel, Executive VP Automotive Dvision, introduces the Honda FCV fuel cell powered concept car during the media preview at the North American International Auto Show (NAIAS) on January 13, 2015 in Detroit, Michigan. The auto show opens to the public January 17-25. (Photo by Scott Olson/Getty Images)

Confronted with those market realities, and a desire to give the next-generation Civic a more sporty character true to its roots, Honda said it will discontinue the natural gas and hybrid versions of the Civic in favor of a new generation of turbo-powered gasoline engines that will get upwards of 40 miles per gallon.

Honda already offers best-in-class fuel economy across its lineup. But the carmaker said it is shifting to a new phase of environmental leadership that will focus on electrified vehicles, starting in 2016 with the introduction of its next-generation fuel cell vehicle, followed by a pure electric model and a plug-in hybrid. Honda is also working on advanced two- and three-motor hybrids.

The shift is a recognition, Mendel said, that alternative versions of mainstream vehicles don’t sell. Going forward, he said, the focus will be on “purpose-built vehicles.” Though he wouldn’t provide details, he said the new advanced, electric vehicles “will become a mainstream volume pillar for the Honda brand.”