Should Ford Worry About Honda's New Hybrid?

Honda just started production of its all-new Accord Hybrid. The first examples will arrive at Honda dealers soon. Photo credit: Honda.

Honda's new Accord has been posting big gains. U.S. sales are up 17.5% so far this year, and the new Accord has stolen market share from its archrival, Toyota's best-selling Camry. Now, Honda says its new Accord Hybrid will get 50 miles per gallon in city driving -- enough to trump not only the Camry Hybrid, but also the hybrid version of Ford's Fusion, another hot up-and-comer in the midsized sedan segment.

Ford's Fusion Hybrid has been a big sales success, but questions have been raised about Ford's mileage claims for the handsome hybrid sedan, with many owners reporting that their cars are thirstier than they'd like. Ford has been scrambling to deal with the fallout.

Is the Accord Hybrid likely to increase the pressure on Ford? In this video, Fool contributor John Rosevear takes a closer look at the new green Honda -- and at how it's likely to affect Ford's (and Toyota's) efforts in one of the hottest segments of the auto business.

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Fool contributor John Rosevear owns shares of Ford and General Motors. You can connect with him on Twitter: at @jrosevear. The Motley Fool recommends Ford and General Motors and owns shares of Ford. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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