Honda Motor Co. announced this week it will produce a dedicated hybrid vehicle starting in 2009, Automotive News reports. The vehicle will be smaller and cheaper than the Civic hybrid sedan but “suitable for family use.” Honda aims to sell 100,000 in North America and 200,000 worldwide. The new hybrid model will be built at Honda’s Suzuka, Japan plant. Honda will discontinue selling the hybrid two-seater Insight in September. The company also announced it is developing a four- and six-cylinder direct injection diesel engine that will meet stringent EPA standards. The four-cylinder engine will be on the market within the next three years, Automotive News reports. Honda has not yet designated which Honda or Acura models will get the diesels. Yet Honda CEO Takeo Fukui told the press that hybrid powertrains are most appropriate for small cars, and clean diesels for medium- and large-size cars.