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Deep concerns in Japan that the global credit crisis structurally shifted the market in North America towards smaller and less-expensive vehicles led Honda to make major changes in its product plans late last year, likely delaying the arrival of the new Civic past its usual four- or five-year product cycle.

Honda CEO Takanobu Ito didn't provide a time frame for when the next-generation Civic would arrive, but told trade journal Automotive News that the team is having trouble meeting the revised deadlines.

Instead of becoming larger, as originally planned and as all new Civics have done with each new generation, Honda will instead make the car smaller, lighter and more fuel-efficient, while increasing perceived space inside.

The turning point for Honda last year was the collapse of Lehman Brothers in September, and the global credit crisis that followed, which reportedly prompted Ito to re-examine all upcoming product lines, leading to the killing of Honda's planned V-8 and rear-wheel-drive programs. This included an exotic sports car program that was close to its finishing stages, and would have competed with the recently introduced and very pricey Lexus LFA.

View the rest of this news article at The Globe and Mail.

TAGS: HONDA CIVIC DELAYED SMALLER LIGHTER