The extent to which Honda has lost its mojo has been a hot topic in these pages of late. Though the big H has stumbled with Acura, hybrids, design and other crucial areas, one major positive seems to persist: the strength of the Honda name. Which is why it’s so strange to read Bloomberg report that Honda will launch a new brand in China next year. The new brand, named Li Nian meaning “ideal” or “spirit”, will be used for Honda’s new sub-Fit small car, designed to take advantage of China’s reduced tax on engines smaller than 1.6 liters.
Li Nian is the first new brand introduced by a Chinese joint venture, as Li Nian vehicles will be built by Honda’s JV with Guangzhou Auto. Honda has no plans to export Li Nian vehicles due to profit-sharing with Guangzhou and possible cannibalization of Honda-brand vehicles. Though Honda sees the brand’s vehicles as the key to making inroads on China’s expanding rural markets, it offers no clues as to why a new brand name has been chosen. After all, if scooters can be sold with great success under the Honda name, why not small, low-cost cars?
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Whoa, nice Mazda2, HONDA :D
Best looking thing you’ve made in years!
My first question is the whole new car is even necessary. The U.S. market Yaris comes with a 1.5L engine just fine. So, obviously the engine size is not the whole story.
Yeah, that’s really trying to look like a Mazda.
Man, seriously, what happened at Honda?
I mean, really, when the used cars look better than the new cars… you know something has happened. It’s like Mr. Opportunity suddenly lost his mojo … even that “loner” mojo. I mean there really was something there with Honda… all through the 80’s and 90’s. Even the early aughts. Now, though.. um..
I’ve said it before and I’ll say it again. Simplicity. Just make simple, revving, basic Japanese cars.
That thing is beautiful. Pity we won’t see it here. To make up for it we get the CR-Z. Yay.
It’s a cutie …
Chinese name means no re-badging will be necessary when the JV is nationalized…
It looks like the Euro Civic to me.
Nationalize a company? Chavaz may get away with it, but China won’t, and so won’t do it. When you figure that out, feel free to come out of your nuclear bunker.
WHy wouldn’t you offer a unique line to the largest car market in the world?
It makes perfect business sense.
Because “Buick” and “HUMMER” are status symbols?
No, seriously. They are. “Only available in China” is NOT a marketing slogan they want to hear.
Seems that Honda has been losing its mojo for quite some time, like since 1992 according to gearheads. Gearheads shake their heads in disbelief and throw theirhands in the air.
And Honda sells cars as fast as they can make them and makes money on every one, while their owners love them who in turn go out and buy another one. The car biz is funny but the car mag business is even more funny.
+1
if they made nice looking and practical Hondas they didn’t need Acura or even a newer brand.
the Fit is good… class leader. I’d sell my arm for a Euro-Honda Accord Wagon. the rest is less than exciting, even for gas-misers.
2011 TSX — go to honda.ee and look at the accord tourer, dead ringer.
How cynical is Honda when they sell a great looking Accord Tourer elsewhere, and try to shove that monstrosity Crosstour down our throats here…
Look at it the other way. Honda’s partners have too much say in this venture for Honda to risk lending the venture their name. If the Chinese involved wants the prestige of that H on the hood, they’d have to give the mother ship better terms. Now, if the whole thing blows up, at least the Honda brand is not, to the same degree, sullied across the largest market in the world.
1.6 liters is small? When I wuz a kid, that was a good sized motor in an import. To say nothing of my 1.3 liter Mini. I wonder if America will ever embrace minimax…..
Seems to me that 1.3L was the size of the rotary engine in my ’87 Rx-7. that didn’t keep it from being a fun car to drive.
Why re-brand? To avoid confusion. This works in the up direction (Acura) as well as down (Li Nian).
Since Honda wants to separate Li Nian from the main brand, it’s reasonable to expect there will be departures in equipment, trim, and perhaps also quality. For instance, the Li Nian may not come with side curtain air bags standard – something Honda began years ago to put in every vehicle it builds.
We often think of China’s market in terms of units sold, but the fact is that many of these cars are minimalist econoboxes. If Honda thinks it can make money in that market, well, so be it. I’d expect the Li Nian to be exported to other developing countries too. If we slide far enough into the Greatest Depression, we might get versions of the Li Nian too.