According to Takeo Fukui, the automaker's president, Honda plans to invest in research for hybrids and other new technology in Japan to face "the competition in hybrids" which has just begun. Let's remember that Toyota has already made the Prius, which is currently the top-selling hybrid.
Honda intends to create a new hybrid model that runs on gas and electricity, and its sales are expected to reach 200,000 vehicles a year. The company's strategy will be based more on hybrid offerings as overall hybrid sales are estimated to bring about 10 percent of Honda's sales in the next four years.
Looking ahead, the automaker forecast a North American sales growth of 3 percent to 1.59 million in 2008, and a rise of 3 percent to 1.55 million vehicles this year.
Since Honda already has such a strong reputation for providing more fuel efficient cars, the recent surge in oil prices helped Honda's sales and the company plans to increase its revenue by investing about $425 million in a new center in Japan to focus on hybrids and fuel cells research.
Eliza Popescu is a financial writer for the online investment advisory service Investor's Observer.
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