Honda Motor to phase out diesel cars by 2021

Honda FCV Concept

Honda Motor said on Monday it would phase out all diesel cars by 2021 in favor of models with electric propulsion systems.

The Japanese automaker aims to electrify all of its European cars by 2025.

By next year, according to European Union emission targets, CO2 must be cut to 95 gram per km for 95 percent of cars from the current 120.5 gram average, a figure that has increased of late as consumers spurn fuel-efficient diesels and embrace SUVs. All new cars in the EU must be compliant in 2021.

Honda said in February it would close its only British car plant in 2021 with the loss of up to 3,500 jobs.

Japan’s No. 3 automaker has said it would cut the number of car model variations to a third of current offerings by 2025, reducing global production costs by 10 percent and redirecting those savings toward advanced research and development.