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Honda exec: not spending on R&D a mistake

A top Honda executive said Monday that while adding high-tech features to cars will inevitably reduce profits, skimping on R&D costs would do greater harm in the long run. "This is my personal opinion, but if car makers don't spend the necessary funds on R&D choosing instead to retain a high margin, things will eventually catch up with them," said Senior Managing Director Michiyoshi Hagino, which Reuters sees as a jab at Nissan. When asked if Nissan's industry-leading profitability goal was wise, Hagino said: "Who knows what could happen, but in our view, things could get tricky there." In recent years, many analysts have cited a lack of innovation as one of the leading causes of slumping sales for American automakers.