Japan Report: Honda Announces Plans for Prius Fighter

It was at Honda’s year-end press conference that the ground rules for the coming hybrid war with Toyota were laid down. Honda’s worst kept secret is that it will roll out its own version of the Prius in 2009, coupled with the hybrid-powered CR-Z sports coupe.

This so-called “Honda Prius” will be previewed this year – maybe at the Paris or L.A. Auto Show – and a source who has seen the car says it looks uncannily like the Prius.

The CR-Z will appear as a toned down version of the 2007 Tokyo show car. But in terms of battery supply, Honda will continue buying from Sanyo Electric and Matsushita Electric Industrial, Honda president Takeo Fukui told reporters.

(Click through to read more about Honda’s hybrid plans or check out the gallery of CR-Z images below.)

But the batteries for the ’09 cars will still be the current nickel hydrogen type. Like Toyota, Honda is still wary about using the more advanced lithium ion battery. “Quality is difficult to clear,” said Fukui.

Combined, Honda wants to sell 400,000 units of the Global Hybrid and CR-Z per year. The big advantages will be low cost and astronomical fuel economy, say insiders.

Sounds OK to us.