Honda is now Flexcar partner

By Frank Vinluan
Seattle Times business reporter

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Now it has a partnership with America Honda, giving the Seattle-based car-sharing company cash to expand while providing a market for the car maker's new electric models.

The partnership, announced yesterday by Flexcar President and former King County Metro Director Neil Peterson, gives Honda 18.4 percent ownership and a seat on the company's board of directors. Flexcar is privately held and did not disclose financial terms of the deal.

In the midst of a five-year expansion, Peterson said the partnership secures the company's plans.

"This allows us to move in a more aggressive fashion," he said.

Founded in 1999 as a transportation alternative for the Seattle area, Flexcar also operates car-sharing programs in Portland, Ore., and Washington, D.C. Users reserve cars by phone and pay only for how long and how far they drive.

Flexcar will announce later this year where it will expand, Peterson said. The plans include introduction of Honda technology that will allow people to use "smart cards" to access cars and track their usage. Honda vehicles in other car-sharing programs use the cards.

Honda has been involved in car-sharing since 1994, when the company launched a test program in Japan, spokesman Art Garner said. The Torrance, Calif., car maker participates in car-sharing programs in Singapore and California.

Discussions about a Honda partnership began last fall. Honda vehicles, mostly Civics, comprise about 70 percent of Flexcar's fleet. Next month, Honda is to release a gas-electric hybrid Civic, and Peterson said such cars may eventually comprise much of the Flexcar fleet. The Toyota Prius and Honda Insight, gasoline-electric hybrids, also are part of the fleet.

Flexcar discussed partnerships with other automakers, Peterson said, but Honda's commitment to environmentally friendly cars was an important factor in the choice. Peterson did not rule out future partnerships with other automakers.

Frank Vinluan can be reached at 206-464-2291 or fvinluan@seattletimes.com.