reportedly kills confirms NSX is DOA" />
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Click above for hi-res gallery of the Acura Advanced Sports Car concept

Amidst a troubled global economy, Honda is actively scaling back its operations, and its performance programs are sadly bearing the brunt. After canceling its participation in Formula One and the AMA motorbike road racing series, the Japanese automaker has reportedly announced that it is nixing development of the next-generation NSX supercar.

The unfortunate news will undoubtedly come as a stunning disappointment for the loyal legions of Honda/Acura sportscar fans. The new NSX, which looked to be nearing the end of its development on the road to production, was slated to be the most powerful car ever made by Honda, driven by an anticipated 560-horsepower V10.

According to Autocar, the goal-line audible came from none other than Takeo Fukui, Honda's CEO, who dropped the bombshell as part of a end-of-year speech to the troops. The news also means that Honda is suspending plans to finally bring the Acura nameplate to Japan, and it also calls into doubt the fate of the V10 engine itself, as well as any long-rumored V8 powertrains.

Honda hasn't ruled out the possibility of picking up where it left off once business is back in order, but in the meantime the original NSX, which ceased production in 2005 after fifteen years on the market, will have to remain without an heir.

Update: Acura spokesman Mike Spencer has confirmed to Autoblog that the NSX has indeed been canceled. We'll now never know how good it might have been.

[Source: Autocar]

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    • 1 Second Ago
      • 6 Years Ago
      Looks like the little 3 have no excuses, they cannot blame UAW costs or legacy for the billions in their loses

      The market expected the global recession to decimate Japanese automakers' profits, but few expected their second-half losses to be so huge. Now the question is whether whopping output and capital spending cuts will even allow them to break even next year.

      Honda Motor (nyse: HMC - news - people ) looks on course to post an operating loss in the second half to the tune of at least 120.0 billion yen ($1.4 billion), on the severe demand slump and surge in the value of the yen. This would be the company's first half-year operating loss in over a decade. Japanese automakers are scrutinizing all their pipeline investments for possible delays or cancellation, slashing output and jobs, and looking to wrangle price cuts from steelmakers and other suppliers.

      On Wednesday, Honda Motor slashed its full-year operating profit forecast by 67.0%, in the third such guidance cut this year. It estimates earnings for the year ending Mar. 31 to come in at 180.0 billion yen ($2.0 billion), down from a previous guidance of 550.0 billion yen ($6.2 billion). The forecast earnings represent a 81.0% plunge from last year. It also signifies a larger-than-expected loss in the second half since Honda posted a first-half operating profit of 302.9 billion yen ($3.4 billion).

      "We see no sign of a recovery," Honda president Takeo Fukui said at a press conference. Honda's shares fell 108 yen ($1.22), or 5.5%, to 1,865 yen ($21.09) in Tokyo trading on Wednesday.

      "The magnitude was quite a bit bigger than anyone was looking for," said Christopher Richter, Tokyo-based analyst for CLSA. "This does not bode very well for the next fiscal year." On Wednesday morning, the Nikkei reported that Honda would slash its guidance to 300 billion yen ($3.4 billion), which was already below Wall Street expectations. Instead, Honda predicted just over half that.

      Honda said it expected sales to have fallen 13.0% for the year, because of a collapse in demand from the U.S. and Europe. The yen's surge to decade-highs against the dollar and euro has dealt a further devastating blow to Japanese exporters by eroding their overseas earnings. Honda said it would cut its dividend to 11 yen (12 cents) per share for the October-December period, down from 22 yen (25 cents).

      "We're not expecting any of the makers to meet the forecasts they set after the first half," Richter said. "I don't think we're done with bad news for automakers."

      Earlier this month, Goldman Sachs expected Toyota Motor to post a second-half loss of 374 billion !($4.2 billion), as the bank cut its full-year operating profit forecast to 208 billion yen ($2.4 billion), down from 624 billion yen ($7.1 billion).

      Nissan Motor will reportedly cut output by an additional 78,000 vehicles starting in January, for the year ending in March, and shed up to 500 temporary workers.

      Damn only excuse for the dinky 3 is they make lousy cars while using slave labor.
      • 6 Years Ago
      can we at least see it!
      • 6 Years Ago
      As a conservative company killing the NSX is of no surprise. You have to have a base core of products before you have the NSX. Dealers sold one or two NSX's a year. No big deal. They need a coupe, v-6 TSX, Convertable, a v-6 RDX (not a turbo 4 banger), bring back a RSX type of car, change the grill work quickly, etc, etc,etc.
      • 6 Years Ago
      a sad but prudent action
      • 6 Years Ago

      I'm a huge hondaphile, and this doesn't phase me one bit. This thing was a bad idea from the start - other than a name, there wasn't anything Honda about this thing. What about a front mounted V-10 in a GT with AWD makes this an NSX?

      Maybe they can shelve this and put that V-10 to better use in a few years.
      • 6 Years Ago
      They just found an excuse to not tell us that GT-R is better. Now I'm waiting Toyota, I mean Lexus.
        • 6 Years Ago
        Its AutoCar so it has to be speculation. But its probably not the best time to be releasing an expensive sports car when even Porsche is having sales drops of 50%.

        Also, the whole Toyota-Lexus 'joke' is tired and lame.
        • 6 Years Ago
        It's been a long time that the LF-A has been canceled.
        • 6 Years Ago
        Apparently the LF-A has been recently trademarked (or something) so it may not be dead yet.

        But I never warmed to the idea of a V10 front engined NSX, much rather they stick with the old formula that was so amazing.
      • 6 Years Ago
      Proactive Honda.....brain dead Detroit!!

      Here is another post showing how Honda is actively dealing with the problems of a crumbling world economy. Audi and Subaru have scaled back racing. Porsche has cancel the take over of VW/Audi, etc etc

      What have we heard that the Detroit bail out brothers are doing to scale back now?? Waiting for Bush to give them money hang on for another 3 months and then come up with a plan!!

      Lutz talks about what they may do...but don't seem to understand that the must do things on the They never learn.

      The contrast in decision making ability between them and successful auto companies is striking.

        • 6 Years Ago
        @ BoneHeadOtto,

        Okay, so Honda reportedly killing the NSX successor, pulling out of certain race programs (much like Porsche, Audi, Subaru, Suzuki) etc. is not reactive of the market? I'm confused now as to what is considered proactive and what's considered reactive because none of anything anyone has been doing was actually planned before just a few months ago. Not saying anyone's bashing but there does seem to be a double standard here.
        • 6 Years Ago
        No....adding "me too" products next year is not proactive.

        They need to shed costs NOW. Kill Pontiac and GMC light trucks. They are redundant to Chevy.
        A $40K Volt will be a curiosity but not a volume money maker. I understand that evan Toyota is still losing money on the Prius at $25k and just decided not to finish it's US plant for that they all will me made in Japan.

        PS I am not a GM basher. I've had several GM cars and pickups and now own a CTS-V. Their death due to poor and late decisions just makes me frustrated.
        • 6 Years Ago
        Possibly killing off entire brands and committing to bringing electric vehicles to market as early (reportedly) as next year isn't proactive?
        • 6 Years Ago
        No its reactive in my opinion. But that is they first place they need to start. React to the market and thier prior mistakes by killing off failed products. The big 3 have had some decent eco friendly tech in the works (GM 2mode hybrid, Ford hybrid) but their business model is reactive not proactive. That is why they kept building more and bigger trucks. They didnt anticipate the need, they just reacted to the need and the need went away very fast. Hopefully from a business standpoint they will be more proactive in the future. But that goes for all car companies at this point really.
      • 6 Years Ago
      too bad....
      • 6 Years Ago
      They should just re-issue the last gen NSX, with a more powerful V6, it was a timeless design and it'll look better than 99% today's crappy designs.
      • 6 Years Ago
      as much as this sucks for car fans, I also can't imagine Honda continuing to spend millions on research for a Halo car when they're hemorrhaging cash and are down 30-40% in sales for the past quarter.
      • 6 Years Ago
      A part of me died, but I totally understand. Given Honda's losses (Honda is no exception to the staggeringly bad economy, although to a slightly lesser extent), it just doesn't make economic sense to spend new R&D money on a supercar. I hope the idea isn't completely dead. THAT would SUCK!
      • 6 Years Ago
      Hopefully the engine is in the right place next time, eh?
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