Honda hybrids may be nightmare for Detroit

"They've done a lot of navel-gazing, saying, "What are we good at?" Robinet said. "They've all basically said we're all good at something different. GM and Toyota have the resources to invest in every technology, but others have to invest in some and do joint ventures for others."

No one really knows what technology will catch on with consumers, Robinet said.

"Everybody's nervous about missing the ship that leaves the dock quickest, whether it's ethanol, battery technology," Robinet said. "But it's difficult to say, "Are they missing it?" because everybody's going down a different route."

As recently as last year, people buying hybrids did so to make a statement about their concern for the environment, but that has changed and Honda is ready to capitalize on it, Toprak said.

"Now we’re after mass market, and mass market is more aware of the hybrids than ever due to high gas prices," he said.

Honda did not disclose the name for its new hybrid but said it will be a five-door sedan seating five passengers. It will feature new technology that reduces the size and weight of the hybrid system to increase fuel efficiency, according to Honda, Japan's second-biggest automaker.

Although Honda already has developed hybrids, it has fallen behind Japanese rival Toyota Motor Corp. in this segment.

Last year, Honda discontinued the gas-and-electric version of its Accord sedan — sold only in North America — which sold just 25,000 units since going on sale in 2004. In 2006, it pulled the plug on the slow-selling two-seat Insight hybrid.

Honda said it's also pushing its fuel-cell technology to ease environmental concerns.

A fuel cell vehicle has no emissions because it runs on the power created when hydrogen, stored as fuel in the vehicle, combines with oxygen in the air to emit water.

Honda said it expects to lease several dozen of its new fuel cell vehicle, the FCX Clarity, a year, mostly in California, reaching 200 vehicles in the first three years. The leasing is set to start in July 2008 in the U.S. and a few months later in Japan.

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