The CR-Z hybrid will be powered by the 4-cylinder i-VTEC 1.5L engine that makes use of the Integrated Motor Assist(IMA) by Honda. It looks like that this car shares most of its DNA with the recently rolled out Insight Hybrid. The CR-Z makes use of a 10 kilowatt electric motor which accelerates the car and recaptures power as it coasts and decelerates. The energy is stored in a 100 volt battery pack made of nickel metal hydride.

The fuel economy is not the best as we expect for small hybrids. The electric engine is paired with six speed manual transmission or via a continuously variable transmission. The CVT version rates 36/38 mpg which is just like the Ford Fiesta while the manual hits worse at 31/37 mpg.

Though the fuel economy is not impressive the CR-Z still makes it as a AT-PZEV or Advanced Technology Partial Zero Emission Vehicle as per CARB standards.

The Honda CR-Z hybrid has an output of 122 horsepower at 6,000 rpm with 128 lb-ft of torque at 1,000 to 1,500 rpm.

The car will be sold with a base and EX versions. The base comes with the usual standard features of stability system, climate control, ABS, and cruise control. The EX will add HID headlamps, leather trim, fog lamps, Bluetooth, and a 360-watt entertainment system.

The Japanese car maker is re-thinking its strategy and line of cars to mold their approach to market amid dwindling car sales around the globe.

Honda experienced an 18% drop of car sales in 2008. The December year over year performance was significantly lower by 35%. The tough times led to Honda’s decision of calling off the production of the NSX supercar scheduled to be out by 2010. The NSX super car was destined to have a V10 power plant in its engine bay.

A rear-driven Acura with a V8 engine was being designed by Honda to rival BMW. Plans of having this car by 2015 were also scrapped off. The V8 was seen as an unsuitable option because of the sky rocketing fuel prices.

Honda executives discloses that Honda will concentrate more on building more fuel efficient vehicles to better survive and deal with the current economic climate.

Other moves to mend the hard punch of the economic crisis include the following:

Honda decides to back out from F1 racing. This will enable them to cut on costs. This is a tough decision for the company since Honda has a long history in formula racing.

The new research and development center in Japan plus two other factories will not be opened soon. They are also delaying the release of new diesel fuels to the US and Japan. Company expansions to Turkey and India are also being delayed.

Salaries of the executives are also being trimmed by as much as 10%. Honda is expected to lay off around 450 people come February 2009.

Oh well, it looks great (just like most of the new Honda’s) and I hope they make a non-hybrid non-diesel version. :p