According to a report by Japan’s Nikkei newspaper, Honda will drop plans to develop clean diesel engines and shift its focus on growing its hybrid lineup. The report says that Honda, which had initially planned to build clean-diesel and subcompacts at its Yorii factory, has since abandoned the plans to focus on building hybrid systems for larger vehicles in its lineup.
During the global financial crisis, Honda had announced that it will delay the construction of the Yorii factory and a plant for 660cc subcompacts at subsidiary Yachiyo Industry Co., both originally scheduled to start production in 2010.
The Yorii factory will now begin production in 2013; however, Honda is still reviewing its plans on subcompacts, which may end being limited to its domestic market in Japan.
– By: Stephen Calogera
Source: Automotive News (Subscription Required)