Honda have said today that the company have been forced to cancel the next-generation NSX because of the global economic conditions. The announcement was made during a speech outlining the carmaker’s revised economic forecast.

News has also been reported that the firm would not be bringing the Acura brand to Japan. ‘The situation is worsening by the day, and there is no prospect for recovery, is our understanding,’ Reporters were told. The NSX was expected to be a V10 sports car and it is reported that the car was almost production ready.

The project had encountered a number of problems but these problems had been overcome and it was in the late stages of development.

The Honda boss had previously told Autocar at the end of last year that the new NSX is ‘necessary for Honda’. The company reportedly indicated its operating profits will be 180 billion yen ($2 billion), down 67% from the forecasted 550 billion yen.

Honda is another manufacturer which has recently pulled out of motor sport to save money, as the firm pulled out of F1 as they were struggling with the costs of the expensive sport, the company had spent an estimated £300 million on F1 each year and in the current economic climate have decided it can no longer take part in the expensive sport.