Biz People

Honda head cold on hybrids

The head of Japanese automaker Honda Motor Co said yesterday he saw no value in developing plug-in hybrid vehicles.

But Honda president Takeo Fukui (below right) said he expects competition in conventional petrol-electric hybrids to shift into high gear in the coming year amid growing demand for fuel-efficient vehicles.

"Until now, the hybrid vehicle business has been about creating impressions and images among potential buyers, and not about producing profitable vehicles at affordable prices," he told the group's annual year-end press conference.

He acknowledged that rival Toyota Motor Corp had made headway with its popular Prius hybrid, but added that the "real competition" begins now.

Honda will introduce a model in 2009 that will only be available as a hybrid, like the Prius, in a bid to highlight the technology, Fukui said.

A new sports hybrid, based on the CR-Z, which was introduced at the Tokyo Motor Show, would also be launched globally sometime in the next few years, he added.

But Fukui said he saw no significant value in researching plug-in hybrid models, which can be recharged connecting to a power plug.

Such systems would require significant improvement in the capacity, weight, and size of batteries, motors, engines, and other components, he said.

"I do not understand why people see value in plug-in (hybrids)," he said. "I cannot understand the rational for (developing) plug-ins."

Hesse gets Sprint's top job

Sprint Nextel Corp on Tuesday named the head of Embarq Corp, its fixed-line spin-off, as its chief executive, hoping the telecom industry veteran can turn around the struggling No 3 US mobile service.

Analysts welcomed the appointment of Dan Hesse (right), widely seen as the top candidate to replace Gary Forsee, who resigned in October amid a loss of market share to rivals such as AT&T Inc and Verizon Wireless.

But Sprint's shares fell 1 percent to $13.76 as analysts said it would take time to fix its myriad problems. Sprint is suffering from customer defections and is under pressure from investors to reconsider costly investments in new technology.

"Sprint Nextel's problems are bigger than any one person, a CEO, can change in the near term," said Stifel Nicolaus analyst Christopher King, while adding that Hesse was likely the best choice given the difficult task ahead.

Hesse knows Sprint well, having worked at the company's local phone division before it was spun off to create Embarq.

Analysts lauded his performance at Embarq, as well as his past leadership at AT&T Wireless. Some noted that Embarq under Hesse had introduced higher-speed Internet services without significant price rises to combat customer losses to cable.

(China Daily 12/20/2007 page16)