4/29/99 News

Thursday April 29 2:42 AM ET HONDA ENDS BATTERY-POWERED ELECTRIC CARS-LA TIMES LOS ANGELES (Reuters) - American Honda Motor Co. has stopped producing battery-powered electric cars, becoming the first major automaker to acknowledge that it sees no future in marketing the costly vehicles, the Los Angeles Times reported Thursday. Torrance, California-based American Honda said its EV Plus has outlived its usefulness as a research platform and did not catch on with the general public. The firm said most EV Plus leases were to businesses and government agencies required by law to use lower-emission vehicles. Thad Malesh, senior analyst and alternate-fuels specialist at J.D. Power& Associates in Agoura Hills, California, told the newspaper that Honda's decision to stop making battery-powered electric cars "sends a lot of signals." "They are certainly being more honest than anyone else about (battery-dependent) electrics," Malesh said. Wednesday, in a further blow to technology, Edison International confirmed that it is closing its Edison EV subsidary, which installed 250 charging stations in California and Arizona. The Los Angeles Times reported that even Toyota Motor Sales USA, which has committed to continue development of its battery-powered RAV4 electric, said the autos have no real appeal for consumers because of their high cost and limited range. The Times reported that fewer than 2400 battery electric cars and trucks have been sold or leased in the United States in the last three years, and most of those have been in California. Experts say the problem rests in the storage battery technology. Battery packs add hundreds of pounds to a vehicle's weight, last three to six years, and can cost tens of thousands of dollars to replace. The battery-powered vehicles also have a limited range of about 75 miles between charges. The Times reported that Honda has spent hundreds of millions of dollars on the technology, but now wants to concentrate on technologies such as fuel cells, which produce electricity directly and do not need heavy, expensive batteries. Honda may also be signaling, the Times said, that it has an alternative zero-emissions vehicle in the works. It is enthusiastic about its new VV hybrid gasoline-electric vehicle, which is scheduled to go on sale in the United States next year. It uses an electric motor to boost a small gas engine to get 70 miles per gallon with ultra-low emissions. Toyota, General Motors, Ford Motor Co., DaimlerChrysler and Nissan say they will continue to develop battery-electric vehicles in addition to pursuing other technologies.

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