Honda Will Lease But Not Sell the All-Electric Fit

By Brad Berman · November 16, 2011

Honda Fit EV introduction at 2010 Los Angeles Auto Show

At last year's L.A. Auto Show, Honda announced that it will produce the Fit EV by 2012. This year, the company set a price.

Just about every major automaker will sell an all-electric car in the next few years. But if you want to know how competitive the company wants to be with its EVs, you need to look at one metric: price.

Honda today announced a lease price of $399 a month for the Honda Fit EV, based on a purchase price of $36,625. That's great news. The problem is that the company will not sell the all-electric Fit. It only be available as a lease.

Honda Fit EV

Honda will begin leasing the Fit EV in California and Oregon in summer 2012. The company expects volume to be approximately 1,100 units—or only about 366 cars a year—for the next three years. This low volume, combined with the lease-only approach, sends a message of tentativeness. A Honda official said the company wanted to be careful and cautious about the Fit EV rollout, explaining that "we don't want to experiment on the customer."

Putting an electric car up for lease but not giving EV drivers the option to buy conjures bad memories of the ill-fated EV1, which was confiscated and crushed by General Motors.

The news of the lease-only option is more painful considering that Honda now says the Fit EV will have a range of 123 miles--up from the 100 miles it promised last year at the L.A. show. Honda told me that the company wanted the 123-mile number to get communicated, as a comparison of the range offered by other electric cars, like the Nissan LEAF. Curiously, the company also said that the EPA number for range that will appear on the window sticker is likely to be 76 miles. The Fit EV will use a 20 kWh lithium-ion battery, and will be powered by a 92-kW electric motor.

Honda Fit EV

The Fit EV's onboard 6.6 kW - 32 amp charger means the battery pack can be fully charged with 240 volts in "as little as three hours."

The Fit EV utilizes the same 5-passenger layout found in the popular Fit hatchback. As announced last year, it will come with three modes—econ, normal and sport—an approach it uses on some of its hybrids. The modes will allow drivers to reduce accelerator response in order to maximize range.

About the author

Bradley Berman is the editor of PluginCars.com. Brad writes about alternative energy cars for The New York Times, Detroit Free Press, Reuters and other publications. He is quoted in national media outlets, such as CBS News, ABC News, CNBC, CBC, and MarketWatch. Mr. Berman is a tireless researcher of the green car market. He is the transportation editor at Home Power magazine.

Full bio · 938 posts

Comments

· alt-e · 26 weeks ago

$36,625 + $7,500 = $44,125.

I would assume that Honda or some third finance party would get the tax credit as per the Volt lease.

Have they said how many they will deliver to the US?

· Tom Moloughney · 26 weeks ago

Thanks, but no thanks Honda. That might seem strange (or even hypocritical) coming from me because I've been a vocal proponent of BMW's EV program and now that I'm completing a 30 month lease-only program(MINI-E) I'm about to begin another lease-only program(ActiveE) for an additional 24 months. I can accept if people want to call me out on it but I'll explain why.

Back in 2008 when I applied for the MINI-E program there were no EV alternatives. I couldn't afford a $110,000 Tesla and it's so small even if I could It wouldn't suit my needs. So getting a MINI-E was really the only path to driving electric for me. So why am I now leasing the ActiveE when I could buy a LEAF, a Volt or a Focus EV? Well, being in the program and working with BMW to help develop the i3, I believe that's really the EV I want to own, and it's not available for another 20-22 months. The two year ActiveE lease allows me to continue to work with the BMW EV team and the ActiveE seems to be a very good EV with a greater range than most other EV's that aren't named Tesla.
So if you want to call me a hypocrite that go ahead. I know the goal isn't to get the OEM's to continue these BS lease-only programs, hopefully Honda is doing it for the same reason BMW is; to perfect the components for the car they intend to sell in a year or two. I'm not sold on that yet though. Unlike BMW, there's nothing I've seen, heard or read that makes me believe Honda is really supporting electric vehicles.

It's unfortunate, because a fit with a 100 mile range would be a damn good little commuter. Maybe Honda will wake up...someday.

· alt-e · 26 weeks ago

The Volt lease rate was $350 for the 2011 model, but is $399 for the 2012 model.

· indyflick · 26 weeks ago

So at the end of the lease will Honda crush them or chip them, that's the big question. Last time Honda chipped all of their EVs whereas GM crushed theirs. I'm betting Honda will stay with the tried and true chipping route that worked out so well for them last time. You know, less evidence that way. Also, from a PR perspective, what looks worse a crushed EV or a pile of chipped EV? I say a crushed EV looks far worse.

· Eric Loveday · 26 weeks ago

Quoting Honda "Honda today unveiled the all-new 2013 Fit EV at the Los Angeles Auto Show, announcing plans to begin leasing the 123 city-mile per charge (76 mile range combined adjusted city/highway) battery electric commuter vehicle to its U.S. customers in the summer of 2012. Honda will monitor market acceptance, but expects volume at this early stage of production to be approximately 1,100 Fit EV's over the next three years. it EV is designed to meet the needs of an average urban commuter, offering an estimated driving range of 123-miles on a single charge using the US EPA city cycle test methods (Honda anticipates a combined city/highway EV range of 76 miles on the new Fuel Economy labels)."

That should clarify Honda's intentions.

· Brad Berman · 26 weeks ago

I just added a few more details to the story (with photos coming soon). New details: Only available in California and Oregon. Just 1,100 units produced over three years. 6.6 kW charger.

I'm not sure about the tax incentive with the least, but I'll find out. My guess is that the lease offer already reflects the reduction from the tax credit.

· alt-e · 26 weeks ago

366 cars per year for the US (if you live in the right place) for a 3 year period.

Somehow they go from 123 miles in the city to 76 miles combined? When the LEAF went from 100 miles to 73 miles?

How many would they have produced without the CARB regulations?

· Michael Walsh (not verified) · 26 weeks ago

Your understanding of the roll-out is incorrect. They only plan on releasing cars during the next two model years - so 550 a year each for 2012 and 2013.

· iletric (not verified) · 26 weeks ago

The battery size (20 kW) and the range 76-123 makes no sense at all. I'm looking past my Leaf for a BEV that does at least freeway 90 miles.

I guess FIT won't fit. And I do not acquit, because Honda has been a big disappointment so far. Way too timid for a popular car maker. I have owned many Hondas. My 92 Accord has 440 thousand miles. Now I have to wait for that "small sports BEV".

BIGGER BATTERY Honda!

· Anonymous (not verified) · 26 weeks ago

123 mi city mileage, as Edmunds.com has also stated is not special at all. A LEAF can achieve similar # as per Nissan.

What's really "pissing me off" is the fact that, EVEN if Honda sells the Fit, it's setting the Fit to be a sales success...NOT. A complete sales failure is what it will be.

@ 37K, assuming that's BEFORE the $7.5K tax credit, that'll be $20K more than a entry model Fit, or 2X the price of a nicely equipped Fit.

Sure, they can sell on Zero emission, but when it comes to money, no one can ever recoup the cost due to fuel savings, or maintenance cost. Mind you, it's very cheap to maintain a Fit, and ICE Fit is also very good in fuel savings. Good luck trying to have people to buy the EV just to sell on the idea of "you'll save the world"...wait, you can't buy the EV.

What's even worse is that it's 2X more expensive than the larger Honda Insight Hybrid!

I believe that this is the most dangerous backlash of building an EV based on a currently available model - that one can compare if it's "worth" it.

Also, based on what one can see here on the Fit EV, it looks more and more likely that Spark EV will be around $30K range too!

Isn't it ironic that, car companies can actually "destroy" the EV market by building and selling EVs (at a price so steep that makes no sense)?

· Tom Moloughney · 26 weeks ago

Anonymous: There really is no way around EV's costing more that their comparable ICE counterparts now. The battery in the fit EV costs more than an regular fit MSRP!

Look at the LEAF, it is basically a slightly larger versa that is better appointed and it's more than triple the cost of a base versa($10,990) before the tax rebate.

You will however have a much lower refueling and maintenance expense over the life of the car and you can recoup the initial extra cost. It's going to take a while for electric cars to come down in price, it won't happen overnight unless there is some kind of energy storage breakthrough.

· alt-e · 26 weeks ago

While it is disappointing that Honda doesn't seem to be serious about what could otherwise be a great EV, this will not destroy the EV market.

Because as long as there is at least one EV that is a worthwhile car sold at a somewhat reasonable price (given fuel savings) and as long as that car is made in high volume, the EV market will do just fine. And the other car companies will be pressured into joining in.

In late 2012 or so all of those stars will align when the Nissan LEAF factory in Tennessee opens and there are 200,000 LEAFs built each year.

That is the thing that is different than back in the days of the limited production and leased EV-1, etc.

· EVNow · 26 weeks ago

Why can't they just admit - it is a CARB play and be done with it ?

· Tom K (not verified) · 26 weeks ago

Well, so far Nissan seems to be the only large car manufacturer that is charging ahead at full speed with EVs... I bought a LEAF, I've driven it in excess of 11,500 miles so far and I will be looking at Nissan again for future purchases.... Brand loyalty is a two way street...

· Londo Bell (not verified) · 26 weeks ago

@ Tom,

As the former owner of a Nissan Versa/Tiida H/B, and a current lessee of a LEAF, I can tell you that there is none but 1 similarities b/n the 2 vehicles - they are both h/b. In fact, as I've posted previously, the LEAF has NOTHING to do with the Tiida, other than the fact that Tiida was chosen as a test mule for the LEAF, followed by Cube3 as the 2nd test mule.

LEAF is built ground up - platform, interior, size, etc. It's not a stretched platform from the Versa. I posted this in another thread earlier:
A lot of mis-info on the last several posts.

(1) LEAF is NOT based on Versa platform.
(2) Versa (or Tiida) is based on (2006-2012) B platform, (2012 - beyond) V platform.
(3) There were EV test mules based on Cube3 (stretched B-platform) & Tiida (B platform). They were just test mules, although I do hope that there will be a Cube3 EVs...
(4) Most importantly, as per Nissan press release, LEAF's platform is built from ground up, specifically for EVs.

http://www.nissan-global.com/EN/TECHNOLOGY/OVERVIEW/leaf.html
http://www.nissan-global.com/EN/TECHNOLOGY/OVERVIEW/ev_platform.html
http://www.nissan-global.com/EN/IR/INSIDE/INSIDE-SP/ZEM/speeches.html

Thus, it doesn't warrant to compare LEAF to a Versa, and incorrect to use the non-existence relationship to justify the hypothesis of EV version of model X is all right to be 2-3 times more dear than the ICE version of version X. Otherwise, one can think of a Corvette being the same as a Geo Metro, because they are both h/b.

Now, I do agree with you that cost of EVs are inherently more costly than most ICE of the same "size" and of the same class (i.e. comparing a Nissan to, say, a Honda or Toyota, etc., rather than comparing it to a BMW or Mercedes Bendz), and that's actually the best reason on NOT using a brand's low end model for an EV conversion, and charge 2-3 times the price of it.

A "smarter" move here by Honda is to use its Accord platform or even a brand new platform to do it.

· Tom Moloughney · 26 weeks ago

Londo: It actually is a perfect comparison. You don't have to agree, that's fine. I never didn't say the LEAF is based on a versa platform and I made it a point to say it's larger and more well appointed(actually much better appointed). They are both 5 passenger hatchbacks, made by NISSAN, the LEAF being slightly larger, Here's the stats:

Head room: (Versa)40.6" (LEAF)41.2"
Hip room: 48.8 ----- 51.5
Leg room: 41.4 ----- 42.1
Shoulder room: 53.5 ----- 54.4
Cargo: cu-ft 13.8 ----- 14.5

There is no other Nissan that is a better comparison. The LEAF is a MUCH nicer car without a doubt, but the purpose of the comparison was to show how much more the least expensive LEAF would cost than the lease expensive comparable 5 passenger Nissan hatchback. If you feel better adding a bunch of options to the versa than go ahead, it will still be half as expensive as LEAF and that's after the federal tax rebate. I love the LEAF and have driven about a dozen of them. I've also driven in my employees versa sl on many occasions so I can speak from experience also.

There is no other Nissan product to better compare the LEAF to, but even if you compare it to a Maxima, Nissan's flagship sedan, the MSRP of the LEAF is still higher. I didn't mean to insult you with the comparison but I think most others understood why I used that as a comparison.

· Tom Moloughney · 26 weeks ago

Why can't they just admit - it is a CARB play and be done with it ?

I think they just did.

· Londo Bell (not verified) · 25 weeks ago

@ Tom,

Sorry, I just don't see it. I guess I'll just agree that we'll disagree here. But let me tell you why I disagree.

Scenario 1: Fit vs Fit EV, or Focus vs Focus EV, or Spark vs Spark EV.
In this scenario, all of the vehicles share
- exactly identical platforms and shell;
- exactly identical interior and exterior sizes/dimensions;
- exactly identical seats & instrument...well, slight twist here and there;
- exactly identical model and class size; and
- exactly identical parts/accessories sharing (i.e. you can fit the body kit, eg. a spoiler - factory OEM or after market, off from a Fit, Spark, or Focus, to their EV counterparts with perfect fit.)

Scenario 2: Versa / Tiida vs LEAF
- totally different platform and shell;
- similar, but totally different interior and exterior sizes/dimensions;
- totally different seats & instruments;
- totally different model but same class size, hence similar dimensions; and
- totally different parts/accessories sharing - none of Versa/Tiida body kits or parts will fit onto the LEAF.

From my pov, these are 2 different scenarios, so it is inappropriate to apply generalization due to similar size of scenario 2 and justify it for scenario 1, or the fact that both Versa & LEAF are H/Bs, when both vehicles are utterly different from each other. If there's no other Nissan for better comparison, that's because there really is no comparison.

· Brett Owen (not verified) · 25 weeks ago

I think Honda is in trouble. It's not just the Fit EV that's doomed. They have no more NSX. If you're a fan of their gas cars, you may have liked the NSX. The Prelude and the Del Sol are also no more. They're basically taking the Nintendo route and only catering to casual drivers and not their old core audience. The only problem is that they refuse to make cool gas cars now, and they aren't too thrilled about making/selling cool electric cars either. That said, I think Carlos Goshn is having an extra special day today. hehe

Plus, you have to look at the bright side of things. If you were holding out on buying or leasing a Leaf, to see the Fit EV, your long wait has ended. :)

· @jmproffitt (not verified) · 25 weeks ago

Sooooo disappointed. But I saw it coming. I called the local dealer a few months back asking about the Fit EV and they knew nothing about. Never heard of it. This for a car that was due out early next year. That told me what I needed to know.

I'm now waiting for a regular gas Fit Sport to be delivered. I just gave up.

All the automakers are flubbing the EV market. Limited production, restricted availability, astronomical prices (really, Ford?), and then these crazy lease programs. If truly interested buyers like me can't become owners, what hope is there for attracting ambivalent drivers?

The EV market could die again not due to lack of consumer interest, but due to lack of spine in automakers. All while oil prices climb higher and higher. Brilliant.

· Tom Moloughney · 25 weeks ago

Londo: Go back and read the original post that I was responding to and maybe you'll understand the comparison. I'm not saying a LEAF is a re-badged versa or tiida, I know it's not. I'm comparing these cars like I would compare a Volt & a Cruze. Which is for my argument, another perfect example(now here comes the volt owners).
The person was bringing up how the automakers are going to "destroy" the EV market by making EV's that can't compare in price to similar ice models. If a person walks into a Volt walks into a showroom and works up a quote on a volt which ends up being lets say $43,500 the salesman can then say "You know I can give you two of these(cruzes) fully loaded and you'll still have money left over for gas". A Nissan salesman can say the same thing with the LEAF and Versa. Of course both EV's here are much nicer than their counterparts, and most of us here realize that. Nissan didn't convert an ICE car lit the fit or focus so there isn't that to compare. In the absence of that I think the versa works perfectly. It not as polished or nice, but in basic transportation terms(5 passenger hatchbacks with comparable interior dimensions), the cars are very similar and they are parked next to each other in showrooms.

In the near future, there is no getting around that EV's will cost more than comparable ICE cars. You can make a lot of that back in long tern fuel savings and maintenance, but many people look at the up front cost much more than the long term operating expense.

· Brian Schwerdt · 25 weeks ago

I agree with Brett. Honda is losing who they are. I have owned many fun Hondas - a 1989 Prelude, a light and peppy Civic hatchback, even a 2004 S2000. All of these cars are gone now and I'm driving a decent but not stellar 2010 Insight. Honda used to be THE leader in fuel economy. That spot is gone. Honda was the first to introduce hybrids in the US, but they've failed to keep up (the Insight is a good car, but pretty much doomed when the Prius C hits the showrooms). Up to this point, I have been a recurring Honda customer. Looks like my loyalty is about to jump to Nissan or (gasp) Chevrolet (sorry Ford, you have to be competitive here).

On another note, FWIW, I agree with Tom on the comparison. When I bought the Insight, the dealer compared it to a Fit. At the time the Fit was about $8k cheaper (comparably equiped), only got about 5mpg less than the Insight, and came with a manual transmission (a plus in my book). What's more, as a consumer, I compared the cars to other makes - the Versa, Prius, Matrix, even Mazda 3. The point I'm making is that it does not matter whether the car is built on the same platform. What matters is that fits into a similar size/body style. That is what consumers will be looking at if/when EVs make it into mainstream showrooms.

· NeilBlanchard · 25 weeks ago

I just ran across this information on the battery used in the Fit EV:

http://www.greencarcongress.com/2011/11/scib-20111117.html

Neil

· Londo Bell (not verified) · 25 weeks ago

@ Brian & Tom,

I don't think that the issue here is about cross shopping - vehicles of different brand, different models, etc. That is normal and most people do it.

I think the issue - my issue - is that after you've cross shopped, you will determine what trim level you want to get, based on what you desire and what you have in your bank account, and most importantly, what your brain is thinking :)

Hence, to me, there really is no cross shopping between Fit EV against Fit Sport. It's just a trim level change, straight speaking.

Just like when Brian finally picked the Insight (my choice too, if not thanks to all the generous rebates on the LEAF lease), I would think that the next step was to choose the trim level (base / EX / EX-L).

When one cross shops, there is an understanding of give or take, i.e. (LEAF as example, against Versa), similar interior size, but one is nicer, whereas the other is cheaper, plus (whatever)...

But when one select trim levels, everything becomes price only (can I afford the Navigation and Audio option, do I need the body kit accessories). That, I believe, will be problematic for vehicles like Fit, Focus and Spark, when their EV trims are 2-3 times more than the base or well-equipped version.

The only exception here, I guess, is that when a shopper is looking straightly for an EV purchase, and his/her choice are just i, LEAF, Fit EV, Spark EV, Focus EV, Coda, Wheego, etc. However, if the ideal is to promote EV purchases among general consumers, this is probably not something worth discussing at this point.

· alt-e · 25 weeks ago

@NeilBlanchard - Thank you for finding about the battery.

It is interesting that Honda chose to put a lithium titanate battery in their one and only EV product. It might be because batteries are hard to get and they had a relationship with Toshiba. But the titanate battery has very good power related performance (both charging and discharging) which make it a very good battery for hybrid applications. But its one weakness is that its energy density is low.

That may also say something about Honda's future plans. Their interest in batteries could be more for hybrids then for EVs.

· pfcbubba (not verified) · 25 weeks ago

When I did my calculations on the efficiency of the Leaf, I didn't compare it to the versa, despite similar looks, but to a VW Jetta or equivalent, because of the trim level and the options. The Leaf is the equivalent of a $23,000 car, not a $14,000 one. Full navigation, internet connectivity, high level of trim, built in bluetooth, computerized dash, all of these are more indicative of a higher end vehicle. Plus it drives and rides like one. I have the upgraded model, and out the door it was $37K, including tax and license. Toss in the $7500 rebate, and you are looking at about $30K for the car. Now add tax and license to that $23K Jetta, and you get $25K. So you have to make up $5K in fuel difference before the Leaf is more economical.

That's easy. At 15000 miles a year, the Leaf uses about 3600 KWh a year. At 12 cents a KWH, which is assuming I charge the Leaf half the time peak and half off peak (which I don't, of course), you get $432 a year in electricity.

The equivalent car might get 30 MPG. At 15K miles a year, that's 500 gallons. Multiply by $3.50 a gallon (it ain't getting cheaper, folks), and you get $1750 a year. Or basically, you save $1250 a year on operating costs, not counting maintenance. So after 4 years, you have made up that $5K.

By the way, if you only charge off peak, like I really do, then you only pay 6.6 cents a kwh, and you cut the return on investment down to about 3 years! Not bad at all!

· EVNow · 25 weeks ago

@alt-e "But its one weakness is that its energy density is low."

Actually, Li Ti is fairly ok in terms of density. It isn't worse than Li Mn or LiFePO. Its one problem is price. That is why Altair Nano couldn't get anywhere.

But Toshiba seems to be making headway. They also have an agreement with VW.

The other important point to note is that Li Ti is the safest of all Li batteries. It also lends to 5 minute charges. Another thing is its longevity, in terms of cycles. So we have 3 things that are needed to displace fossil fuels. Just need to work on that density.

· Chris O (not verified) · 25 weeks ago

Yes, the Toshiba SCib battery is the real news here. It explains why the Fit gets more miles from 20KWH than the Leaf from 24KWH: it can be bled completely. It also explains why it's lease only: the car will last forever but probably cost a fortune to build if the battery tech is expensive. Of course when produced in larger numbers this could be a great deal for consumers, but like mentioned before, this is just a CARB play, not meant to become a threat to Honda's ICE business.

It's funny though that Honda is now offering battery tech that could be charged in minutes, without actually mentioning any fastcharge capabilities. Could it be that Honda, king of the ICE, actually feels threatened by batteries that could be recharged in minutes?

· Yegor · 25 weeks ago

Honda was late at the Electric car game. Also Honda is very committed to reliability (I think Reliability is Honda's second name). May be they just cannot yet produce a reasonably prices and reliable, well tested EV in such a short term - I think they committed to EV just one year ago. Hence the high cost and low production of Fit EV until they develop a mass market EV in the next couple of years.

· Tom Moloughney · 25 weeks ago

Yes, the Toshiba SCib battery is the real news here. Agreed Chris. They claim they can be charged to 80% in 6 minutes and still retain 80% of the battery strength after 4,000 recharges. 4,000 charges would represent over ten years of use and is much longer than most li-ion compositions expect to last. The question is how much do they cost?

· alt-e · 25 weeks ago

When I said that litium titanate batteries are heavier I was speaking in terms of equal exploitation of the chemistry's potential. Any given company's battery of whatever chemistry can have more or less actual energy density compared to how well developed the battery is. I am not all that familiar with Toshiba's battery in particular.

I also consider LiFe batteries to be inherently low in energy density. In terms of how far they can be pushed compared to some other lithium chemistries.

That doesn't mean I am opposed to either of these chemistries. To a large extent they are the safest chemistries, for instance.

It just means that if you look at all of the inherent properties it is a hybrid with its need for fast and repeated charge/discharge where the titanate really does well. And that is usually a smaller pack where the cost works out.

Titanate is definately inherently more expensive than manganese or iron. However, I have seen cost studies on this in the past and it is not that bad in absolute terms in very high volume production (cost per car for the material). I cannot remember the exact numbers. I have no idea how it is currently priced based on its other uses, but in the long run it is higher but useable.

The reason why there is a higer needed charge/discharge capability in hybrids (or even plug-in hybrids) is that since the batteries are smaller the effective C rate of the regen braking is more significant. You can use any chemistry for regen in an EV because the battery is so big that the C rate from regen is small.

· alt-e · 25 weeks ago

In my preivous comment I am not talking about whether or not the battery can do the regen but what the life of the pack is.

· Brett Owen (not verified) · 25 weeks ago

Brian: Yeah, well I'm hoping Honda will prove me completely wrong between now and,, soon. Maybe Takanobu Ito will think it over this weekend and just give up and make the radical move of selling EV. Maybe some of his investors will get confused about Nissan selling 200,000 EVs a year versus Honda making 336 a year, and give him a call. If I had money in Honda, I would.

That said, I'm saving my pennies for a Leaf. Especially now that the 2012's are out with battery heaters. :)

· RGW1946 (not verified) · 22 weeks ago

This is all JUNK..WE workers need and would like a 20k auto..size of Focus...no flash..120V charge system..no spcial plugs..do 150miles before charge..do 60/70mph
Now can this be done..YEP...anyone with half a brain...think about what it would really take ..... THINK....
enough said..
Ooops..just one.. EV1.ORG ...

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