How Much Is Too Much to Pay for a Honda? - The Wall Street Journal

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BUCK UP Despite drooping sales and few material upgrades, the cost of Honda’s CR-V keeps... — BUCK UP Despite drooping sales and few material upgrades, the cost of Honda’s CR-V keeps rising.
Photo: Honda North America

May 29, 2020 11:26 am ET

HONDA-SAN, you know I love you. I have been there for you since the Civic CVCC days. I have held a laurel crown over the Odyssey as best minivan, thrown les fleurs at l’Accord, and dynamically disassembled one of your dirt bikes at the bottom of a ditch.

For most of those decades, sir, the H on the grille was the stamp of over achievement, representing fineness and firmness, engineering substance, and on-target value. Now look at you. Or better yet, look at the price of your 2020 Honda CR-V AWD Touring. This is the top of the line version of your most popular product, with a starting price of $33,250 and as-tested of $35,870. Oh raven of greed, take thy beak from out my groin.

“ The CR-V—and many competitors, actually—should be a lot cheaper as the product has ceased evolving technically. ”

It’s one thing to bang on about a six-figure Lamborghini, knowing that only a handful will ever be such soaring fools as to buy one (always lease). The CR-V represents the dead center of the U.S. market, nearly 400,000 buyers in 2019. Those are real people making real car payments, and hating it. I’m on their side.

And, sure, the fact that more than 40 million people have filed for unemployment and GDP could contract by 34% in Q2 ( Goldman Sachs ) has probably led me to recalibrate my notions of delivered value in the mass market. To that end, sir, I ask: Why is this thing so rotten expensive?

For good reason car manufacturers decline to specify vehicle profit margins or unit costs. GM’s pickup customers would probably be more combative if they knew their Silverado High Country biscuit was covered in $20,000 of shareholder gravy.

Honda’s CR-V (made in Indiana, Ohio and Canada) is a vastly different case, with nothing like the margins of a domestic full-size pickup truck. And yet it seems to me the CR-V—and many of its competitors, actually—should be a lot cheaper, on the grounds that the product has ceased evolving technically. I’m going to write a number on a piece of paper ($5,000). Take that to your sales manager.

The 2020 model-year represents the mid-cycle face-lift of the fifth generation launched in 2016 and it is, in most ways, unchanged. It does get some updated sparkle here and there (note the staple-shaped brightwork dividing upper and lower grille, as well as standard LED DRLs and black-chrome taillights); and it gets some value-added sweetening in the form of the Honda Sensing suite of driver-assistance systems, now standard equipment. But nothing fundamental to the experience.

Except. As of 2020, there is but one gas-only powertrain option: a fervidly turbocharged 1.5-liter, 190-hp four cylinder, paired with a continuously variable transmission (CVT) with simulated gear-changing (put a pin in that), and front-wheel drive. All-wheel drive is a $1,500 option in all trims except the Touring. Pfft. Thanks a pantload, Chet.

For many Honda-watchers, the hot ticket is the new CR-V Hybrid (system max 212 hp and 232 lb-ft). This arrangement brings the CR-V’s mileage up to 38 mpg combined, according to the EPA, a respectable 30% better than our conventionally powered tester.

But the value is elusive. The CR-V Hybrid Touring costs $2,700 more than the gas version, a premium that, with fuel prices in the U.S. hovering around $2 per gallon, will take a long time to recoup. But of course the CR-V with the hybrid powertrain will be smoother, stronger, quicker and quieter. That being the case, why isn’t the Hybrid CR-V the only CR-V?

Here’s my argument: When times were fat—like, six months ago—auto makers could afford to pad the bill and string along consumers with new features. Now the economy is staggering and the auto industry is in crisis. You thought people didn’t want to go to a dealership before? Honda’s U.S. sales were down 54% in April.

In view of the need to stimulate sales immediately, and in frank acknowledgment that what is in the showrooms now are legacy products, cut prices. A lot.

If you are a fan of the previous CR-V you will feel right at home. Please observe the PRNDL gearshift lever occupying its own center console, gracefully growing obsolete. You will recognize the graphical instrument cluster and 7-inch center touch screen that have been ubiquitized across Honda’s product line. Yes on optional wireless charging, Android Auto and Apple CarPlay. But overall, these interfaces seem Babylonian.

The driving is pleasant and unremarkable. The little turbo engine has plenty of torque and revs freely when pressed. In less urgent moments, its demeanor is less lapine than bovine, making contented moo sounds between stop lights. Among the more curious corners of the engineering is the CVT’s imitation of a conventional automatic with stepped gears. Under hard acceleration the rising engine revs fluctuate, the song quavering, dropping before picking up again. These minor fallouts of torque cost the CR-V at least a second in acceleration time, 0-60 mph, for no reason other than the comfort of the familiar.

The CR-V’s greatest competitive advantage remains intact. The rear seat legroom is a comparatively huge 40.4 inches, which means kids in car seats have more room not to kick the seatbacks. It’s also easier to get carseats in and out of the second-row doors.

If I’m keeping it real on price, perhaps it’s because the Touring’s woodgrain trim is so fake, lumber from the Polystyrene Forest. Nor would one hire the boot-maker who fitted our car’s leather seat jackets. Why, sir, can’t you throw in that nonsense for free? Or make the Hybrid a no-cost option?

There are many things that ought to be cheaper in the world right now: craft beer, faux-snakeskin face masks, Netflix. And transportation. Now would be a good time for car makers to slash their prices.