Honda Officially Breaks Ground for New Auto Plant
$550 Million Plant Will Begin Production of Civic Sedan in 2008

Honda today held an official groundbreaking ceremony for its $550 million automobile plant, to be known as Honda Manufacturing of Indiana, LLC (HMIN) and revealed that the new plant's 2,000 associates will produce the popular and fuel efficient Honda Civic sedan when mass production begins in fall 2008. It was also announced that HMIN's first president will be Yuzo Uenohara, who previously held the position of senior vice president at Honda Manufacturing of Alabama, LLC.

Honda first announced plans to build the new Indiana plant June 28, 2006, with an annual production capacity of 200,000 vehicles. In an effort to meet strong customer demand, site preparation for the new plant is complete and basic construction has already begun on a 1,700-acre tract in Decatur County, Indiana, near the town of Greensburg, 50 miles southeast of Indianapolis.

"In Indiana we will create an efficient and flexible manufacturing environment that is a great place for everyone to work," said Koichi Kondo, president & CEO of American Honda Motor Co., Inc., and chief operating officer of Honda's North American Regional operations. "In this way, we are breaking ground for more than an auto plant. We are breaking new ground in our relationship with the people of Indiana and our customers in America."

HMIN will be Honda's seventh auto plant in North America and one of 17 major Honda manufacturing facilities in North America. It will help to boost Honda's total North American automobile production capacity from 1.4 million units to more than 1.6 million units in 2008, employment in North America to more than 37,000 associates and capital investment in North America to more than $9 billion.

1 Honda products are produced using domestic and globally-sourced parts

HMIN began advertising February 21, for a limited number of non-production positions in the fields of automotive engineering, purchasing, information technology and administration and has received more than 6,000 responses. The hiring process for production associates will not begin until late 2007. Honda is an equal opportunity employer and is committed to recruiting candidates from diverse backgrounds.

"Over the years, we will ask the associates of Honda Manufacturing of Indiana for their ideas to make our products better and the plant the safest place it can be," said Uenohara, the new president of Honda Manufacturing of Indiana. "This is the Honda way and this spirit will guide us at Honda Manufacturing of Indiana."

Major production processes performed at the Indiana plant will include stamping, welding, painting, plastic injection molding, sub-assembly and final assembly operations. Mass production of the 2009-model Civic sedan is scheduled to begin in fall 2008. Honda will make a significant commitment to limit the environmental impact of the new Indiana plant, including ISO 14001 international environmental management certification, and advanced methods of energy and emission reduction with the goal to be a "zero waste to landfill" facility.

Honda built more than 1.16 million Honda and Acura passenger cars and trucks in North America last year, or more than 77 percent of the more than 1.5 million Honda and Acura vehicles purchased by U.S. consumers in 2006.

The Civic sedans produced in Indiana will feature fuel-efficient four-cylinder engines manufactured in Anna, Ohio. The vast majority of parts for the vehicles made at the Indiana plant will be manufactured by Honda's existing base of more than 600 North American suppliers. Honda purchased more than $17.6 billion in parts and materials from suppliers in North America last year.

Honda began U.S. sales operations in 1959, the company's first overseas subsidiary. Honda began U.S. production operations in 1979. Honda began building cars in the U.S. in 1982, making 2007 the 25th anniversary of Honda auto production in America.

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