Honda Cancels 2010 Acura NSX

The cancellation was one of a long list of cutbacks, cancellations and changes to plans announced in CEO Takeo Fukui's year-end speech. Honda had already announced it is pulling out of Formula 1 racing after this year.

The opening of Honda's new Sakura R&D Center and a new plant in Yorii, Japan, both scheduled for 2010, will be delayed. Expansion in some developing countries will be delayed, with India and Turkey named in the report, and operating officers will see their pay cut by 10 percent, while bonuses will be "reassessed" based on how business looks at the end of the fiscal year on March 31.

On a brighter note, Honda says it is still focusing heavily on development of a new sub-Fit small car with a goal to introduce it within two to three years. The automaker is also vowing to "focus all our energy on hybrids and achieve mass market penetration as soon as possible." The Insight hybrid will make its debut next month at the 2009 Detroit Auto Show, with sales to start in the spring.

Inside Line says: Honda turns its attention toward hybrids and away from horsepower for now. — Laura Sky Brown, Correspondent