Honda to Strengthen Mini-vehicle Business with New Plant

TOKYO - July 18, 2007: Yachiyo Industry Co., Ltd., a Honda consolidated subsidiary in Japan, announced it has determined to acquire the land adjacent to its Yokkaichi Factory to build new production facility in the effort to further strengthen its mini-vehicle business.

The purpose of the land acquisition is to establish the optimal production system for mini-vehicles, including engines and parts, in order to further improve the competitiveness of mini-vehicles that the company produces.

Although the detailed plans are still to be finalized, the company plans to begin with the establishment of an engine assembly facility, which will enable the company to achieve synchronous production of automobiles including the engine and the complete automobile, which in turn will help the company improve the efficiency of production and logistics.