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Honda Plans Heavy Investment In Hybrids

Honda plans to invest aggressively in research for hybrids and other new technology in Japan, says Takeo Fukui, president of Japan's No. 2 automaker. It will introduce a new hybrid model--which runs on gas and electricity--with an affordable price tag in 2009, targeting sales of 200,000 vehicles a year. Hybrid sales will make up about 10% of the automaker's sales by about 2010, Fukui says.

Honda will invest about $425 million in a new research center in Japan to focus on next-generation cars, including hybrids and fuel cells, Fukui says. The center will be partially running by 2009, and fully open by 2010, and will also focus on research for new technology for Honda's Acura luxury brand models.

Fukui says Honda's hybrid system is better in some ways than Toyota's system, including that it costs less, but he will not specify a price. He projects overall North American sales to rise 3% to 1.59 million units next year. Like Toyota, Honda has gotten a sales boost from the surge in oil prices that is adding to the appeal of Japanese autos reputed for good mileage.

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Read the whole story at The Miami Herald/AP »

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