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Originally Posted by cfg83
Me too, I've always owned fuel-efficient compact cars. But I don't think we are in the car-buying majority.
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Perhaps we're not a majority, but we're a market. And a market that can be sold to, profitably. It's not just economical small cars either: no one could really claim that Porsches or the BWM/Mercedes 2-seaters are economy cars, but they sell.
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You drive a 1st-gen Insight that you fully admit was an economic failure for Honda. If gas prices had been higher, do you think Honda would have sold more 1st-gen Insights?
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I don't think the Insight was a failure at all. It did exactly what it was intended to do: test Honda's IMA system in the real world without exposing the company to significant liability if there were major problems (recall the "unintended acceleration" thing with the Prius?), plus get good publicity. I don't think Honda ever wanted to sell more than it did, because they were selling for less than they cost to build.