November 22, 2002

Honda breaks ground for U.S.$425 million plant expansion in Alabama

Lincoln, Alabama – On Thursday, Honda Manufacturing of Alabama broke ground on its new U.S.$425 million assembly line. The ceremony marks the beginning of construction on the second assembly line, which will increase employment to approximately 4,300, double production capacity to 300,000 engines and vehicles per year and increase Honda’s investment in Alabama to more than U.S.$1 billion.

The expansion will increase total employment by 2,000 associates and will add more than 1.1 million square feet to the existing 1.7 million-square-foot facility.

HMA currently employs more than 2,300 associates, producing about 150,000 Odyssey minivans and V-6 engines each year. HMA reached this capacity rate – 650 Odyssey daily – in September 2002.

A decision regarding what model will be produced on the second line will be made closer to start of mass production. As with HMA’s existing operations, the new line will incorporate Honda’s New Manufacturing System, which allows for production flexibility based on customer demand.

The new assembly line will be constructed adjacent to the existing facility on HMA’s 1,350-acre site near Lincoln. It will mirror the current facility’s operations with synchronous body and engine assembly under one roof. Honda unveiled an artist’s rendering of how the completed HMA complex will appear when construction of the second line is completed in early 2004.

When completed in 2004, Honda’s capital investment in North America will total more than U.S.$7 billion. North American employment will rise to more than 28,000.

Honda began operations in North America in 1959 with the establishment of American Honda Motor Co., Inc., Honda’s first overseas subsidiary. Using domestic and globally sourced parts, Honda began assembling motorcycles in America in 1979, with U.S. automobile manufacturing starting in 1982. Honda currently builds products in 11 manufacturing plants in North America, with three major R&D centers in the U.S.

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