NEW YORK (TheStreet) -- Carmaker Honda (HMC) said it will drop its current Civic hybrid and compressed natural gas vehicles to concentrate instead on development of new hybrids, battery-powered cars and new hydrogen-powered fuel cell vehicles.
John Mendel, executive vice president of North American operations, said demand for the discontinued vehicles was too weak to justify continued production. The new hybrid will be introduced within three years.
Honda "is developing an extensive new generation of electrified vehicles," he added. The automaker expects the new models to result in "significant" sales, which he didn't quantify.
Last week was a rough one for Honda's stock after the automaker restated 2014 financial results to account for an additional $363 million to cover U.S. recalls of defective Takata (TKTDY) airbags. Shares fell almost 2% in trading on Friday.
Over the past decade, Honda's stock has kept up in its peer group and with Japan's stock market. Honda shares are up 51% for the decade, compared with 119% for Toyota (TM), 16% for Nissan (NSANY) and 79% for the Nikkei 225 Index.
The two equity analysts that follow Honda's American depositary receipts rate the security a buy, according to Yahoo! Finance.
The uproar over deaths and injuries attributable to the defective airbags has engulfed several other automakers as well, Mendel noted. The automaker is doing everything it can, he said, to find alternate suppliers and replace defective equipment.