Masaaki Kato, president of Research and Development at Honda Motor Company, stands for a photo in the company's North American headquarters in Torrance, California, on Sept. 12, 2008. Photographer: Jonathan Alcorn/Bloomberg News By Alan Ohnsman
Sept. 15 (Bloomberg) -- Honda Motor Co., first to lease hydrogen autos to U.S. drivers, said batteries haven't advanced enough to make rechargeable cars a good replacement for gasoline models and isn't following rivals who plan to sell plug-ins.
"For battery-powered vehicles to become more widespread, more popular in the market, we feel battery technology needs to advance further,'' said Masaaki Kato, president of Honda's research unit, in an interview at the Tokyo-based company's U.S. headquarters. Expectations for plug-ins are big and ``we don't know that that could be sustained right now,'' he said.
Honda is bucking an industry move toward lithium-ion batteries as record-high U.S. fuel prices this year and climate change concerns over carbon dioxide push carmakers to develop alternatives to gasoline power.
General Motors Corp. sparked interest in a new generation of electric cars with its Volt, a sedan due by 2010 that will travel 40 miles solely on lithium-ion batteries before needing a recharge. Toyota Motor Corp., Japan's largest automaker, and No. 3 Nissan Motor Co. are also readying small electric cars powered only by batteries.
A production version of GM's plug-in Volt is to be shown tomorrow in Detroit.
"GM and Toyota are slugging it out for attention as technology leaders in this area,'' said Phil Gott, a powertrain analyst for market forecaster Global Insight Inc. in Lexington, Massachusetts. "Honda doesn't want to get in the middle of that. They've also been fast to market with many technologies, and don't have anything to prove right now.''
'Impossible to Imagine'
Vehicles using lithium-ion power wouldn't satisfy most consumers, since such batteries are costly and still hold less than half the energy of gasoline by weight, Kato said.
"We just don't see it providing the type of driving performance you get with a gasoline-powered vehicle,'' Kato said Sept. 12 in Torrance, California, speaking through a translator.
For example, the Japanese government's advanced battery development program has a goal of boosting energy storage capacity by seven times and cutting cost to 2.5 percent of the current level, said Kato, who is also senior managing director for Japan's second-largest automaker.
"That gives you a pretty clear example of what type of gap we're facing relative to a gasoline vehicle,'' he said. "At this point, I'd say it's impossible to imagine a date at which such a breakthrough could occur.''
Refining Fuel-Cell System
While Honda may offer a plug-in at some point, for now it will continue refining the fuel-cell system in its new hydrogen- powered FCX Clarity sedan, Kato said. Based on advances the company has made with the vehicle, including improving range to 280 miles, ``we believe it's easier than battery innovation,'' Kato said.
Such a choice isn't unusual for Honda, said Michael Omotoso, powertrain analyst for market-research firm J.D. Power & Associates in Troy, Michigan.
"This fits in with their reputation for conservative product decisions,'' Omotoso said. ``They opted not to offer V-8 engines and stayed out of big trucks, and they're doing well this year because they focused more on small cars.''
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