(Tokyo, October 23, 2009) Honda CEO Takanobu Ito took the stage at the Tokyo Motor Show this week to unveil three new concept vehicles, including two hybrids and one plug in battery electric vehicle. However, before discussing any of those cars, Ito highlighted the hydrogen fuel cell FCX Clarity.

Ito reiterated that he and Honda remain committed to fuel cell technology and believe that it will be the best long-term solution to producing full-function zero emission vehicles. Before fuel cell vehicles go into mass production, Honda believes that hybrids will remain the best mainstream approach to reducing fuel consumption and greenhouse gas emissions. Honda plans to expand hybrid availability to additional platforms in the coming years.

Of the three new concepts, the CR-Z is the closest to production. Like numerous previous concepts from Honda, the CR-Z varies from the upcoming production model only in some details such as the head and tail light clusters and exterior mirrors. The CR-Z is a new two seat sport coupe that with a hybrid drive train.

The 1.5-liter four cylinder engine is larger than the 1.3-liter used in the existing Insight five door and is mated with Honda's integrated motor assist (IMA) mild hybrid system. Honda has not yet revealed any performance figures for the CR-Z but it should perform significantly better than the larger Insight. Honda has addressed one of the complaints that potential buyers had about the Insight by equipping the coupe with a six-speed manual transmission, the first such application in a hybrid vehicle.

Honda will unveil the final production version of the CR-Z at North American International Auto Show in Detroit in January. The coupe will go on sale in Japan in February before coming to the US market in the fall of 2010.

The second hybrid concept shown by Honda is the SkyDeck MPV. The SkyDeck is primarily a styling study at this stage and Honda provided no detailed powertrain specifications at the show. However, speaking after the show, Ito did acknowledge that Honda would be developing hybrid systems for larger vehicles such as the SkyDeck. The SkyDeck is similar in size and configuration to the current Japanese domestic market Odyssey MPV and may represent a preview of the next generation.

The third hybrid concept is the EV-N, a battery powered plug-in electric city car. The styling of the EV-N is strongly reminiscent of the Honda N360 of the of the 1960s. Nobuki Ebisawa, Executive Chief Designer, Honda Design explained that concept was created by a young designer at Honda R&D, but an upcoming BEV from Honda will probably have a completely different and more modern design.

Ito and his predecessor Takeo Fukui have both been publicly critical of battery electric vehicles. The official Honda position is that batteries are unsuitable for use as the primary energy storage for vehicles because of their low energy density and high mass and cost. Honda remains confident that it can get the cost of fuel cell systems down to competitive levels with internal combustion systems over the next decade.

The primary reason that Honda is developing a BEV at this time is the combination of a zero emissions vehicle mandate in the state for California that takes effect in the middle of the next decade. Ito would prefer to meet the mandate with a fuel cell vehicle but the continued lack of expansion of a hydrogen fueling network has made that impossible in the required time-frame.

Instead, Honda is developing a small urban vehicle that uses lithium ion batteries produced by its joint venture with GS Yuasa.

Honda like other automakers including Toyota, General Motors and Daimler has no interest in getting into the energy distribution business. However, with an administration in Washington that is not only disinterested but openly hostile to hydrogen, the problem of building out a hydrogen network is even more troublesome. When asked about how to make progress, Ito expressed the need for patience.

Ito responded that automakers need to be patient while continuing to inform people and governments about hydrogen fuel cell technology. Ito also expressed his belief that once consumers experience BEVs and the limitations of batteries in real world use, they would eventually come back around to supporting fuel cells.

Over its history, Honda has built a reputation based on two major elements, efficiency and performance. Honda has consistently been involved in motorsports with both cars and motorcycles in addition to building sports cars like the S2000 and NSX. Until late 2008, the company was working on a successor to the NSX which was believed to be powered by a new V10 engine.

Ito acknowledged that he personally made the decision to suspend development of that car in the fall of 2008 in part to conserve cash for mainstream programs following the financial collapse. During our discussion with Ito in Tokyo, he admitted that he wants to see Honda build new performance cars. However, he doesn't intend to follow the path of Toyota which introduced the $375,000 Lexus LF-A supercar in Tokyo.

Instead Ito intends to use the same technology that is being developed to make Honda's mainstream models more efficient to create a green sports car. If and when Honda builds a new sports car Ito intends for it to be much affordable than the Lexus. He also wants to maximize the power to weight ratio by cutting weight rather than dramatically increasing the power. Ito stated that Honda no longer plans to build engines with more than six cylinders.

Honda has a potentially very interesting future under its new CEO. Takanobu Ito recognizes the importance of efficiency going forward but doesn't intend to sacrifice good driving dynamics.