What little training I’ve had in statistics has led me to think of most problems as either numerator problems or denominator problems. When it comes to the lack of affordability in new cars, it’s usually a numerator problem. Honda plans to fight this by improving the odds you’ll be able to find an affordable car.
There are a lot of announcements from the company today, including that Acura will finally get a hybrid, and it’s the one you’d expect. Tesla’s FSD system gets frequent airplay in The Morning Dump, but today’s news isn’t about it not working.
David is driving the cool Kia K4 Hatch today, but there’s another Kia that I now want.
Honda Is America’s New Best Trimflation Fighter
If you haven’t heard me complain about trimflation before, the concept is fairly simple: automakers, when pressed, will offer lower-cost trims while not actually building that many. It’s fine to say your starting price for your mid-size crossover is $34,000, but if you only build one of those for every 300 higher-trim models, it doesn’t really matter.
This is the numerator/denominator problem. The average new car transaction price will continue to increase so long as there are too few low-trim models available to buy.
Honda is a company that makes a lot of cars in the United States and, therefore, is able to flex its production might in the face of tariffs. The company just announced it’s going to use that might to fight trimflation:
American Honda is maintaining a flexible and balanced strategy to stay competitive and adapt to evolving market conditions. In 2026, to meet customer needs for affordability, the company will increase production of more value-oriented trims of core Honda models (CR-V, Civic, Accord) and gateway Acura models (ADX and Integra).
“With average new car prices hitting record highs across the industry, cost is a growing concern, and we want the Honda and Acura brands to continue to be recognized for delivering incredible value to our customers,” said Woelfer.
This is a win for consumers. While plenty of automakers have stated that lower-trim models are coming, this is the first time I can remember seeing one specifically state that it’s going to build more of them. As you can see in the graphic above, the MSRP difference for a Civic Sport Hybrid and a Sport Touring Hybrid is $3,000, or a full 10% increase.
As someone who happily drives a CR-V Sport, I can tell you that there’s not much I’m missing on my “base” trim Honda hybrid. There are most of the features I want, other than the heated steering wheel. I kind of miss the heated steering wheel.
The Acura RDX Is Getting A Hybrid, Eventually
One of the more head-scratching decisions from Honda was that the company didn’t more aggressively pursue hybrids for its vehicles. The Acura RDX is made in East Liberty, Ohio, where its cousin, the Honda CR-V, is also built. The CR-V, as noted above, is available as a hybrid.
Instead, Acura is going to get the RSX electric crossover first. That logic of it makes sense when looking back on predictions about electrification, but I’m sure many Acura dealers would rather have a hybrid.
To wit, Acura just announced it’ll build a new RDX with the hybrid system. Eventually.
“For nearly two decades, RDX has been one of the most popular Acura models, so it’s fitting that the upcoming fourth-generation RDX will be the first Acura to feature our two-motor hybrid-electric system,” said Mike Langel, assistant vice president of Acura National Sales. “The RDX hybrid is expected to arrive at dealerships within the next couple of years, and we’re thrilled to share this news as Acura celebrates its 40th anniversary—making this milestone even more special.”
Is that next year? Or is this a Scranton “couple of two-three years” situation wherein the quantity can be anywhere between 1 and 27?
Tesla To Make FSD Monthly Only
If you want Tesla’s “Full-Self Driving” (FSD) system, which is not actually full-self-driving, then it would cost you $8,000 once, or $99 per month forever. If you plan to use the system for about seven years, then it’s cheaper to do the one-time payment.
Perhaps seeing that the one-shot isn’t popular, Tesla announced it’ll be ending the one-time payment option as of February 14th. Or, according to Bloomberg, maybe there’s another reason:
Although Musk didn’t offer any rationale for the switch, his compensation is partly dependent on growing the business. Reaching 10 million active FSD subscriptions is among the targets Tesla must hit for the CEO to earn additional shares under the pay package shareholders approved in November. Achieving a series of market capitalization and operational milestones could net him around $1 trillion worth of stock.
I still think monthly is the smarter play for most people.
Ohhhhhhh Kia K4 Sportswagon
President Trump went to a Ford plant yesterday, said he didn’t think Americans wanted to buy anything from Canada, a worker called him something he didn’t like, and then the President flicked him off. Is this worth touching? Not really! People are allowed to criticize elected officials, and people raised in New York will find any excuse to make that gesture.
So let’s talk about something more interesting: Station wagons!
Kia is about to start selling the hatchback version of its affordable and stylish K4 here in the United States. In fact, David is going to drive it today and report back when the embargo is up, whenever that is.
What we are unlikely to get is the handsome wagon version that debuted yesterday. Here’s the wagon:
Here’s the K4 Hatch:
I prefer the Sportswagon, but they both look great, and I’m not going to feel terrible about not getting it.
What I’m Listening To While Writing TMD
Here’s a surprise drum session from South Korean President Lee Jae Myung and Japanese Prime Minister Sanae Takaichi. They’re drumming along to “Golden” from K-Pop Demon Hunters. Diplomacy can be the carrot or the stick. OR, it can be the drumstick.
The Big Question
What’s the best lower trim new model for sale right now?
Top photo: Honda
I really hate base model stuff. I get why it exists, but I have always shopped with the mindset of buy something older will all the options instead of newer with no options. Not having heated seats may work for some people but not me,.
I wanna give Chevy an honorable mention for being able to get heated seats in lower trim levels, even with a bench seat!
That Ford employee = hero
Freedom of speech works both ways.
Understatement of the year!
Freedom of Religion also inherently states Freedom From Religion.
He has been fired.
Yes, freedom of speech works both ways: you both get to express your opinion, and also to suffer the consequences of expressing your opinion.
That’s one reason among many why there’s the old saying “discretion is the better part of valor.”
The Union will likely fight that.
Which is everyone’s reminder that Unions are important.
I’m liking the Mazda3 2.5S for a base trim, for the same $24-25K as the Civic. You’re limited on paint colors and get an all-black only interior, but the 2.5-liter engine and geared transmission are going to be world’s nicer than the anemic CVT moaner in the Honda.