Honda knows that fuel-saving cars and low inventory are the keys to staying competitive.

The company also knows that saving fuel is saving our environment and producing cars on demand doesn’t tax other global resources as well.

Honda’s President was interviewed - excerpts:

“Compact cars like the Jazz (known as the Fit in Japan) remain stable in the region, but we are having a hard time selling larger vehicles.” Duh?!

“…the rise in crude oil prices will have long-term implications for us. Accordingly, what we should do now is develop more inexpensive, fuel-efficient vehicles.” Why wait till the economy is a mess?

“It is equally important to improve the lineup of energy-saving vehicles. We will go into an offensive mode highlighting hybrid vehicles.”

Honda knows that making cars friendlier to our environment and less taxing on our resources is a long term solution. America’s Big Three! Are you reading?

Image courtesy of Clint M Chilcott

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Toyota is doing its part to make a mint, um, decrease the impact that its cars have on the world’s fossil fuel resources. By 2010 the automaker wants 1/10th of its sales to be hybrid vehicles. Toyota had not set a target date to reach one million units until now. Presently, the car maker sells 450,000 hybrids a year and wants to more than double that figure within two years.

A fully redesigned Prius hybrid is expected out next spring as well as a second hybrid vehicle. Toyota not only wants to keep its lead in the hybrid market, but expand it.

Toyota not only wants to win, but win big.

Beijing is getting serious about clean air during the Olympics. The city has removed one half of all government vehicles from the streets of Beijing. The move eases congestion, reduces emissions and saves resources for a greener Olympics, which start 8-8-08. “The government wants to take the lead in guaranteeing smooth transport during the Games,” said a transport official.

The move is more aggressive than an initial plan to ban just 30% of all government cars starting on July 1st. Happy, of course, are the Beijing cabbies. Business is good and traffic is far less congested as they haul around their fares. Beginning on July 20th, Beijing will ban 70% of all government vehicles until September 20th. Altogether, some 210,000 vehicles are expected to be sitting in garages. That number is in addition to the half of 3.3 million cars that will be parked on 0dd-even days. The 12 million commuters in the city can expect some 4 million more to crowd onto buses and other public service vehicles. To meet this demand, some 2000 buses and three new metro lines will be added or extend their operating hours. A 4-day trial period last year showed that it works.

Now, if the city really wanted to save money and do something about hot air, they would try to reduce the number of people that create congestion in the government bureaucracy by 70%, too. And, if that works, help us out here in the U.S. please.

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There’s got to be a better way. There’s got to be a better way. Repeat after me. There’s got to be a better way. At least two more ‘better ways’ have taken a step forward in the past couple of days.

Germany’s Robert Bosch GmbH has agreed to work with South Korea’s Samsung SDI Co to develop the next-generation batteries for hybrid cars. Bosch is the world’s top parts maker and Samsung is, um, Samsung. In a 50-50 joint venture, the two giants will spend some $500 million over the next five years to improve on the lithium ion battery for hybrids, then sell them to GM, Ford Motor, Hyundai and any other takers.

In short, they will spend the next five years chasing Toyota and Nissan. Toyota is working with Matsushita Electric and Nissan has formed a partnership with NEC Corp.

The goal - bring down the costs of the hybrid car battery and in turn bring down the overall costs of the more eco-friendly cars. Presently hybrids go for as much as $5000 more than their gasoline counterparts, they are better on the environment but not the wallets of consumers. That’ll change.

Meanwhile, Honda Motor Co is even farther ahead with the launch of the Clarity hydrogen-fueled car for lease in the United States.

Source: Nikkei (sub req)