Honda To Launch New Hybrid in 2009, Redo Fit This Fall

Honda lifted the veil on some of its future plans on Wednesday, confirming that it will "offer a new dedicated hybrid vehicle in 2009 at a price level lower than the Civic Hybrid."

The Japanese automaker also said its Fit, which has reached cumulative worldwide sales of 2 million units as of June 30, will "undergo a full model change this fall."

The launch of the Acura brand in the company's home market has apparently hit a roadblock. Honda said: "Based on a comprehensive evaluation of the current market environment, Honda will reassess its basic plan and delay the introduction of the Acura brand in Japan for two years or so from its original plan of fall 2008."

The future product nuggets and strategy plans were detailed in the "summary of 2007 midyear CEO speech" posted on the Honda worldwide Web site.

It chronicled an ambitious plan for global growth and a commitment to alternative-fuel choices. Honda noted it will introduce a next-generation diesel engine, which it says will meet the U.S. EPA's Tier2 BIN5 emission standard requiring NOx emission levels equivalent to those of a gas-powered vehicle to the U.S. in 2009, likely in the Honda Accord. It said it will introduce this next-gen clean diesel engine to Japan.

China apparently plays a huge role in Honda's upcoming global strategy. Guangzhou Honda Automobile, a Honda joint venture in China, will set up a research and development facility to develop a "product which will be marketed under an original brand of Guangzhou Honda, targeting the start of sales in 2010," the company said. Honda said the vehicle "will be differentiated from the Honda brand."

The investment in the R&D facility is pegged at the equivalent of $264.4 million and will include a "full-scale" facility with a test course. Honda said it will also build a new R&D center in Sakura, Japan, that will begin operations in 2009.

Honda also said that Yachiyo Industry, a Honda subsidiary in Japan, will build a new production facility "in the effort to further strengthen its mini-vehicle business." Detailed plans are still to be finalized, Honda said.