Price down and spec up for new Honda Euro

Honda's new Euro is not only bigger and, on first impressions, better -- it's also cheaper and better equipped. Indeed, adding significant fuel to the value-for-money fire already raging in the medium car marketplace, the second-generation Euro went on sale this weekend (Saturday, June 21) at a sticker price $1000 under the car it replaces.

The new Euro arrives with an updated, if familiar mechanical package. Featuring sharper yet evolutionary styling, the car longer and wider, rides on a longer wheelbase and boasts a 65mm increase in track front and rear.

The revised 2.4-litre DOHC four-cylinder petrol engine is 8kW/11Nm up on the outgoing model, delivering 148kW at 7000rpm and peak torque of 234Nm at 4400rpm. Fuel economy has been trimmed to 8.9L/100km for both manual and auto versions. This is down from 9.1L for the outgoing manual and 9.4L for the first-gen auto.

We tested the new Euro at its international launch last month (more here). At that time, Honda suggested the car would arrive Down Under with a price rise -- in fact, the range was tipped to start at $34,990. At last Friday's local unveil of the car in the Adelaide Hills, however, the Big H revealed a line-up that kicks off at $32,990 for the base model Euro.

But wait, in true steak knife tradition -- there's more. Honda claims the real value of the car has, in fact, improved up to $4500, saying the three-tier model line-up features between $2000 and $3500 worth of extra equipment depending on model.

The base model Euro arrives well-equipped for its opening $32,990 sticker. Featuring 17-inch alloys and suede-like cloth trim, standard features include: dual-zone climate control, leather multi-function tilt and telescopic steering wheel, six airbags including curtains, active head restraints, ABS, stability control, cruise, full electrics, height-adjustable halogen headlamps, six-disc 10-speaker audio system, auto-dipping door mirror (for reversing) and iPod prep.

The rear seat is a 60:40 splitfold (though the boot cabin aperture significantly limits load-through) and the spare is mounted on a full-size alloy. A six-speed manual gearbox is standard across the range with the five-speed paddle-shift multi-mode auto variants $2000 more at all three trim levels.

Honda says in all, around $2000 of extra equipment has been fitted over the first generation entry-level Euro.

Next step up the range, the volume-selling Euro Luxury is priced from $39,990 ($41,990 auto) and represents a significant upgrade in specification -- over both the outgoing Luxury and new base models.

In addition to adding perforated leather trim, the Euro Luxury gets heated electrically-adjustable front seats (driver and passenger, memory for driver), auto-dimming mirrors, rain sensing wipers and auto headlamps, upgraded interior trim, front and rear park sensors, fog lights and 18-inch alloys (spare is a space-saver).

Honda claims the Luxury's added equipment is worth around $3000. This is upped to $3500 of added value for the $42,990 Euro Luxury Navi ($44,990 auto) top line variant which adds satnav and a reversing camera to the Luxo's spec.

Not surprisingly, given the added-value claims, Honda has strong sales expectations for the car. Having sold more than 45,000 units since the Euro came Down Under in June 2003, the carmaker now expects to sell around 10,000 Euros per year.

It says its main targets are Mazda's 6, Subaru Liberty and VW's Golf-based Jetta sedan.

According to Honda, Ford's Mondeo is not a competitor for the Euro. Honda Australia cites the Mondeo's near-large-car dimensions as the reason, arguing the Accord VTi and V6 are closer matches for the European Ford.

Look out for our local launch update of the second generation Honda Accord Euro soon.

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