This excerpt taken from the HMC 6-K filed Jan 15, 2009.
Along with hybrid models, Honda will focus on and accelerate product development of small cars for which an increase in global demand is expected.
To minimize the impact of raw material prices, which fluctuate based on various external factors, Honda will build products with a minimal reliance on expensive
materials, which will enable Honda to offer its customers products with stable cost competitiveness.
In order to fulfill strong demand from customers, especially in newly emerging countries where motorization continues to advance, Honda is making progress in the
development of a new small car which will be positioned in the class below Fit with a goal to introduce it to the market in two to three years.
To further enhance its product strengths in the small-size vehicle segment, Honda will make progress in the development of small-size diesel engines.
To concentrate its resources on hybrid models and small cars, the introduction of medium to large-size diesel models in the U.S. and Japan will be delayed.