Honda to Delay Introduction of Clean Diesel Engines Into U.S., Focus on Hybrids

Honda to Delay Introduction of Clean Diesel Engines Into U.S., Focus on Hybrids

Honda Motor Co. won't be bringing its mid- and large-size clean diesel engines to the U.S. in 2009 as planned due to rising material costs, slumping economic conditions and the significant disparity between diesel fuel and gasoline prices, a company spokesman told us today.

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Honda displayed its four-cylinder clean diesel engine at the 2008 Detroit Auto Show.
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"We will postpone the introduction of the mid- and larger-size diesel engines into the U.S. market," David Iida, a spokesman for American Honda Motor Co., said. The company had said it was working on a low-emissions diesel V6 engine, as well as a four-cylinder diesel engine that would be introduced in the Acura series next year.

But because of the factors mentioned above, "we've changed our focus right now and we're going to devote a lot of energy to the further development of hybrid models," Iida said. "In the short term, we think this is probably the most efficient way to achieve CO2 reductions as well."

Iida confirmed Honda's plans to introduce the Insight hybrid in the U.S. this Spring and put the CRZ hybrid on sale by the end of 2010.

"We'll also look into enhancing our hybrid lineup with possible applications of hybrid technology to medium- to large-size vehicles," he said. He said he could not discuss which models be effected at this time.  

Iida announced that a new assembly line for hybrid engines was just added to Honda's Suzuka plant, raising from 70,000 to 250,000 the number of hybrid engines that can be produced at the factory annually.

Battery Venture Announced

Also today, Honda President Takeo Fukui announced the automaker is partnering with battery maker GS Yuasa Corp. to develop lithium-ion batteries for hybrid cars.

The new venture will launch next year at a cost of about $170 million.

The announcement came immediately after Honda slashed its profit forecast by more than half for this year, its third cut.

Fukui said the company believes accelerating the development of advanced environmental technology will be crucial in the severe business conditions.

Scott Doggett:  is an AutoObserver.com Associate Editor.