Honda CEO Takeo Fukui confirmed the plan in his end of year speech, saying that all development of the car would cease. Fukui also revealed that plans to introduce the Acura brand to Japan in 2010 have all been canned, reports Automotive News.
The news comes less than two weeks after Honda announced that it planned to pull out of next year’s Formula One season, citing financial constraints as the main reason.
Honda also announced today that it is lowering its annual operating profit forecast by 67% - its third profit warning of the year. The carmaker now expects its operating profit for the business year to March 31 to be ¥180 billion ($2 billion) - down 81% from last year.
Instead, Honda will focus on developing more fuel-efficient hybrid and diesel models, especially in the compact car segments. Plans for a minicar positioned below the Fit (Jazz) are still on track, as are plans for the CR-Z hybrid sports car.