Oct. 23 (Bloomberg) -- Honda Motor Co., refusing to follow its biggest rivals, will focus on improving conventional gasoline-electric hybrid technology instead of developing hybrids that can be plugged in, said President Takeo Fukui.

Hybrids that can be recharged at household electric outlets aren't the most effective way to cut emissions of gases linked to global warming, Fukui told reporters in Tochigi, Japan, today.

Fukui's comments challenge initiatives of General Motors Corp. and Toyota Motor Corp., the world's two largest automakers. Companies that develop more reliable lithium-ion batteries, which a plug-in would require, would be better off using them in a pure electric vehicle or conventional hybrid, Fukui said.

``The currently proposed plug-in hybrids are like a battery- electric vehicle equipped with unnecessary fuel capacity and an engine,'' said Fukui, who led research and development at Tokyo- based Honda before becoming president four years ago. ``I don't think that will contribute to the global environment or to reducing carbon dioxide.''

GM, based in Detroit, plans to sell the Chevrolet Volt plug- in as early as 2010. Toyota, of Toyota City, Japan, this month began testing plug-in Prius hybrids in California and Japan.

GM plans to equip the four-door Volt with lithium-ion batteries capable of powering the vehicle for as far as 40 miles (64.4 kilometers) before needing to be recharged.

``It is possible to mass produce plug-in hybrids within two years,'' Fukui said, without elaborating.

New, Improved

As part of a strategy to cut carbon pollution from its vehicles, Honda is preparing an improved hybrid that's less costly than any offered by competitors that will go on sale by 2009, he said.

Honda, Japan's second-largest automaker, also plans to begin leasing a new version of its FCX fuel cell car in the U.S. and Japan next year, with initial volume ranging from dozens to fewer than 100, he said.

``Global warming has taken center stage as the key issue for automakers,'' Fukui said.

Honda's American depositary receipts rose 24 cents to $33.08 at 4:01 p.m. in New York Stock Exchange composite trading.

To contact the reporter on this story: Alan Ohnsman in Tokyo at aohnsman@bloomberg.net

Last Updated: October 23, 2007 16:09 EDT