Honda Motor Co. said Friday it will develop diesel engines for cars and install them in a new Accord to be launched in Europe in 2003.

It will be Honda's first production of diesel engines for cars, it said.

Other automakers are also working to develop diesel engines because they discharge less carbon dioxide, industry analysts said.

Honda also said it will install diesel engines produced by Isuzu in its Civic and market the vehicle in Europe starting in November. Honda plans to sell 5,000 units through the end of next March.

Honda President Hiroyuki Yoshino said at a news conference that the automaker sees the need to strengthen its diesel car lineups in the European market, where demand is increasing.

The European market, where Honda has been struggling to expand, appreciates diesel engine cars as being more fuel efficient and emitting lower carbon dioxide, he said.

Isuzu names Schwarz

Isuzu Motors Ltd. said Friday that Randall Schwarz of General Motors Corp. of the United States will become its vice president in late June.

Isuzu, which is 49 percent owned by GM, also said GM Chairman John Smith will be a special adviser to the Japanese automaker.

Schwarz will be Isuzu's third vice president from GM. The two companies aim to strengthen their business ties in order to reconstruct the management of Isuzu, the firm said.

Kazuhira Seki, Isuzu's chairman and chief executive officer, will step down as a board member and become a special adviser and honorary chairman of the company.

Vice Chairman Takeshi Inoo will succeed Seki as chairman, leaving President Yoshinori Ida as the only board director with the right to represent the company, Isuzu said.

Jay Chai, vice chairman of Itochu Corp., will step down as an Isuzu board member to become a special adviser, the company said.