Honda Begins Mass Production of Civic Sedans in Indiana

Business Wire, Oct 9, 2008

GREENSBURG, Ind. -- Honda Manufacturing of Indiana, LLC today began mass production1 of the fuel-efficient, 4-cylinder Honda Civic sedan at its new facility in Greensburg, Indiana. The $550 million facility will ultimately produce 200,000 vehicles, and employ 2,000 associates at full capacity.

"With continued high demand for the Honda Civic, we are honored and excited to help meet the needs of our customers in North America," said Yuzo Uenohara, president of Honda Manufacturing of Indiana (HMIN). "Our new Indiana associates are dedicated to building the very best Honda products, with customer satisfaction as our top goal."

Nearly 900 Indiana associates have been conducting trial production for several months, refining new processes and equipment, and learning to meet Honda standards for quality, efficiency and flexibility. Today's start up of mass production culminates several weeks of department-by-department production start-ups in stamping, welding, painting, plastic injection molding, body assembly and other areas.

Currently, Honda Manufacturing of Indiana is operating on one shift with plans to add a second shift in 2009. The Honda Civic sedan being built in Indiana features the 140-hp, 1.8-liter, 16-valve SOHC i-VTEC[R] 4-cylinder gasoline engine produced by Honda associates at a Honda engine plant in nearby Anna, Ohio.

"We've reached this milestone thanks to great cooperation and support from Indiana's state and local leaders," said Rick Schostek, vice president of HMIN. "It was a team effort with INDOT, the Department of Workforce Development, the Indiana Department of Economic Development, Decatur County, the City of Greensburg and many others making important contributions to our successful startup."

Honda announced plans to build the Greensburg facility in June 2006, and broke ground for the new production facility in March 2007. The new plant is a comprehensive production facility that includes metal stamping, plastic injection molding, subassembly and final assembly and other processes. Honda Manufacturing of Indiana sits on a 1,700 acre parcel facing Interstate 74 in Greensburg.

Honda has designed the Greensburg facility to be a flexible, efficient and environmentally responsible auto manufacturing facility. The plant will be Honda's second U.S. auto plant designed as a zero waste to landfill facility. It will help to boost Honda's total North American automobile production capacity from 1.42 million units to more than 1.62 million.

Honda began operations in the U.S. in 1959 with the establishment of American Honda Motor Co., Inc., Honda's first overseas subsidiary. Honda began U.S. production in Ohio in 1979, and began U.S. automobile production in 1982 at its Marysville, Ohio, auto plant. The company has invested more than $10.6 billion in its North America operations, including 16 major manufacturing facilities employing more than 35,000 associates and producing more than 2 million products annually, including Honda and Acura automobiles as well as motorcycles, all-terrain vehicles, personal watercraft, lawn mowers, general-purpose engines, and other power equipment products. Honda currently partners with more than 650 North American suppliers and purchased more than $18.8 billion in parts and materials from North American suppliers in 2007. Visit Honda's online multimedia newsroom at http://www.hondanews.com

1 Using domestic and globally sourced parts