Summary of 2007 Year-End CEO Speech

JCN Newswires, Dec 19, 2007

Tokyo, Japan, Dec 19, 2007 - (JCN Newswire) - The current fiscal year is the last year in the current 3-year mid-term which began in spring 2005. During the last three years, Honda focused on gaining a foothold for the future, and results of such efforts have begun to show in many areas.

Honda will further accelerate its effort to strengthen the core characteristics that make Honda unique in the areas of research and development, production, procurement, sales and marketing on a global basis, with a focus on the following three pillars:

1) Strengthening the foundation for global growth

2) Strengthening Honda's effort to reduce its environmental footprint

3) Accelerating efforts in Japan to strengthen the core characteristics that make Honda unique

1. Strengthening the foundation for global growth

Motorcycle

Asia Oceania - Motorcycle

2007 sales forecast: 9.5 million units (up 3% from 2006)

Honda's cumulative motorcycle production reached 20 million units in India (in January 2007), 15 million units in Thailand (in September 2007), and 20 million units in Indonesia (in November 2007).

India

The third motorcycle production plant of Hero Honda will begin operation in April 2008, adding annual production capacity of 500,000 units.

Vietnam

The second motorcycle plant with annual production capacity of 500,000 units will begin operation in the latter half of 2008.

With Honda's fuel injection (FI) and low friction engine technologies, Honda developed a 100cc class motorcycle engine which achieved a maximum 15 percent improvement in fuel economy, increased power output, and lower cost compared to a conventional engine. New models equipped with this engine will be introduced to countries in Asia starting in 2008.

South America Motorcycle

2007 sales forecast: 1.53 million units (up 25% from 2006)

Peru

A new motorcycle plant with annual production capacity of 25,000 units began operation in October 2007.

Brazil

December 2007, the expansion of annual motorcycle production capacity in Brazil from the previous 1.35 million units to 1.5 million units has been completed. The production capacity is scheduled to be further expanded to 2 million units in early 2009.

Automobile

North America Automobile

2007 U.S. sales forecast: 1.55 million units (up 3% from 2006)

2008 U.S. sales plan: 1.59 million units (up 3% from 2007)

Sales of the all-new Accord are off to a good start, while sales of Civic and Fit remain strong.

For cumulative sales from January through November 2007, CR-V and Odyssey were ranked as the best selling vehicles within each respective category.

Annual production capacity of Honda's auto plant in Mexico was expanded from the previous 30,000 units to 50,000 units in September 2007 concurrent with the start of CR-V production.

In fall 2008, Honda's total annual auto production capacity in North America will be 1.62 million units after a new auto plant in Indiana and a new auto engine plant in Canada begin production.

The prototype of the all-new Pilot will be introduced at the North American International Auto Show in Detroit in January 2008.

Europe Automobile

2007 sales forecast: 380,000 units (up 23% from 2006

2008 sales plan: 420,000 units (up 11% from 2007)

Sales of Civic, CR-V, and diesel models remain strong, and sales in Russia and Central Europe have increased significantly.

In February 2007, production at the UK plant reached 250,000 units annually making full utilization of the plant`s production capacity. With completion of capacity expansion at the plant in Turkey from the previous 30,000 units to 50,000 units, Honda's total annual auto production capacity in Europe will be 300,000 units at the beginning of 2008.

In the first half of 2008, the all-new Accord Sedan and Tourer will be introduced to the market. The mass production models will be introduced at the Geneva Motor Show in March 2008. The all-new Accord will be equipped with an i-DTEC engine, which complies with the Euro 5 emission standard expected to become effective in 2009.

Asia Oceania Automobile

2007 sales forecast: 345,000 units (up 9% from 2006)

2008 sales plan: 415,000 units (up 20% from 2007)

India

By the end of December 2007, annual production capacity of the existing auto plant in India will be doubled from the current 50,000 units to 100,000 units. In July 2007, the construction of a new auto plant began (which is scheduled to become operational in 2009).

Thailand

Cumulative automobile production in Thailand reached the milestone of 1 million units in November 2007. Honda's local engine parts plant began operation in April 2007, and a plant which produces stamped body panel service parts began operation in September. In addition, Honda's second auto plant in Thailand will become operational in the latter half of 2008. Combined production capacity will be 240,000 units annually at its full capacity. Increased production in Thailand enables Honda to further strengthen its ability to offer products to the entire region.

The all-new Accord was introduced first in Thailand in November 2007, then will be introduced to the other countries in the region in 2008.