Honda: No battery-powered cars for us; we'll use hydrogen
Posted Aug 13th 2009 11:40AM by Brian White
Filed under: Industry, Competitive strategy

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Honda Motor Co. (NYSE: HMC) won't be lining up to produce electric-powered automobiles any time soon. That is, the Japanese automaker is running after hydrogen fuel-cell technology instead of battery-powered electric propulsion technology, which is the mainstay of current hybrid vehicles and upcoming all-electric vehicles.

Honda's fuel-cell development chief, Takashi Moriya, said that "Fuel-cell cars will become necessary ... we're positioning it as the ultimate zero-emission car." Why is Honda pursuing fuel-cell technology instead of electric motor technology? Does Honda believe battery technology won't ever satisfy the ever-growing demand for completely gasoline-free engine designs in the next decade? Possibly. Right now, a major drawback to electric vehicles is battery longevity and cost.

AutoPacific's Ed Kim indicated that "Honda has a propensity to think very long term" -- and he's mostly right. Honda believes in this more than the current hype over electric cars, and they tend to stick with a decision they really believe is correct, according to Kim.

So, while Honda may not get caught up in the furor surrounding the transition to electric-powered cars -- and instead focuses more on where alternative vehicle power could rest in 2022 -- it could be quite a vision for Honda to lay low at this time. Or, fuel-cell technology could never fully develop and Honda will be left scrambling.

Buck