Help me, Honda

The price of the new CR-V benefits from changes Honda has made to its dealer and distribution network. Motoring editor ALASTAIR SLOANE reports.

Up until a few months ago, Honda's dealers bought cars at a wholesale price from Honda New Zealand and sold them on to the public, earning a retailer's margin. Most of the new-car industry works this way. Dealers live on this margin, some better than others.

But Honda New Zealand changed the way it did business. It restructured its dealer and distribution network, instead stocking each yard with cars it owned itself.

Dealers would be paid a commission on each car they sold. The new order would provide a better service for customers, said Honda. Executives talked of a new catchcry, called "price promise."

The change in distribution left 33 national outlets - 13 showrooms owned by Honda and 20 independent dealers, called agencies.

"Stocking a dealership carried a high capital cost and considerable risk in terms of assessing which new models would sell best," said Honda New Zealand managing director Sho Minekawa at the time.

"Many dealers could only afford to make available a narrow range of models for stock.

"Under the new system, agents will be able to sell any vehicle on order nationally, not just the ones allocated to them."

Honda New Zealand director Graeme Seymour talked of the new distribution set-up at the launch of the new four-wheel-drive CR-V in Nelson this week.

"It has reduced the costs of delivering cars to end-users and enhanced Honda's ability to pass price benefits on to its customers," he said. "The new CR-V pricing reflects these changes."

The new vehicle is only marginally more expensive than the one it replaces. The five-speed manual costs $36,000, or $500 more than the outgoing model. The four-speed automatic is $37,500, also up $500. The better-equipped Sport version is $39,700, an increase of $200.

Seymour is proud of the prices. "The key to 'price promise' is increased customer satisfaction at an affordable price," he said.

"It gives every customer the best possible value up front, not polluted by deals, demonstrator sales promotions, special discounts or other inducements.

"The result is a price for everyone, regardless of buying power. It is firm, clear and understandable.

"We are confident the new CR-V will quickly establish itself at the top of the regional four-wheel-drive sales charts, just like the original.

"New Zealand is an important market for the model; we were the first export market for the original CR-V."

The new model might look similar in its exterior dimensions, but the only thing it has in common with the old is its 2620 wheelbase measurement.

It is stronger, 17mm longer, rides on a platform it shares with the new Civic and Integra, has significantly more interior room for heads, legs and shoulders, and comes with a 2.4-litre four-cylinder engine, said to be refined and fuel-thrifty.

The 2-litre engine in the old model did the job on and off the road, producing 109kW and 182Nm. But many owners wished for more useable torque. The new clean-burning engine provides just that, developing 224Nm at 3600 rpm and 118kW at 6000 rpm.

It benefits from Honda's latest i-VTEC engine technology, combining variable valve timing and lift control with a new variable timing control system that continually adjusts camshaft phasing to optimise performance and emissions.

Ride and handling are also much improved, says Honda. The old car's double wishbone front suspension has been dropped in favour of redesigned MacPherson struts, as in the Civic and Integra.

Honda says the reworked front suspension provides a better ride and creates a more efficient front crumple-zone.

Torsional rigidity is up 50 per cent while bending stiffness has improved by 30 per cent.

The hydraulic dual-pump four-wheel-drive system is carried over and is said to work as well as ever. But the technology seems a little off the pace when rivals such as the Ford Escape/Mazda Tribute and Nissan X-Trail combine automatic four-wheel-drive systems with an extra manual locking function for soft, or downhill terrain.

Honda has applied much of its people-mover packaging expertise to the new CR-V. The fold-down table between the front seats has been enlarged and the bigger interior extends to rear seats which are divided 60/40, recline up to 45 degrees and also slide back and forth 170mm.

A double-folding design allows the rear seats to be stowed away with the headrests in place to provide 952 litres of load-carrying capacity - 25 per cent more than the previous car.

The two-piece tailgate is retained, but has been redesigned so that the glass can also stay attached to the bottom section when it's open. The removable picnic table is still standard but sets up on longer legs.

The old car's column-mounted automatic-transmission shift lever has been relocated to the dashboard, and there's a joystick-style handbrake on the centre console.

Safety equipment includes ABS anti-lock brakes and dual airbags. Air-conditioning, CD player, power windows, height-adjustable driver's seat and front and rear seat folding armrests are standard items.