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Honda to Build New Automobile Transmission Plant at Hamamatsu Factory

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TOKYO, Japan, November 8, 2008: Honda Motor Co., Ltd. announced plans to build a new automobile transmission plant within its Hamamatsu Factory in order to strengthen production of automobile automatic transmissions (AT) and continuously variable transmissions (CVT), to meet growing global demand.

The new automobile transmission plant will utilize a portion of the factory site where the motorcycle plant is currently located (the transfer of motorcycle engine production to Honda's Kumamoto Factory will be completed in 2009). With relocation of the existing facilities within Hamamatsu Factory and introduction of a new production line, the plant will make full use of advanced technologies and establish a high quality and highly efficient production system. With the new plant, annual AT and CVT production capacity at the Hamamatsu Factory will increase from the current 700,000 units to 1.1 million units. The new plant is scheduled to become operational within 2010, and related investment is expected to reach approximately 14 billion yen.

Efforts to further improve production efficiency have already begun at the Hamamatsu Factory. Production processes for transmission gears, once spread around the factory, have been reorganized, and a synchronous production system has been introduced in the area of machining. A highly efficient production system will be further established by consolidating transmission assembly processes at the new plant and also by improving logistics system within the Hamamatsu Factory. Moreover, a new flexible production line installed at the new plant will be capable of adjusting production of AT and CVT based on market demand. With the new plant, Honda will enhance the overall competitiveness of its transmission production.

As a leader plant of Honda's global transmission production, Hamamatsu Factory also will continue to enhance coordination with other AT production plants in the U.S., Indonesia, and China, and further strengthen its function to evolve advanced production technologies horizontally to other Honda plants.

The new plant will be designed to address environmental issues from various perspectives including rooftop afforestation, promoting use of rainwater, and adoption of natural lighting.

About Hamamatsu Factory

Start of operation: April 1954 (Hosoe Plant: September 2001)
Location: Hamamatsu-shi, Shizuoka
Lot size: 212,000m2 (Hosoe Plant: 230,000m2)
Products: Engines for medium-to-large sized motorcycles (scheduled to be transferred to Kumamoto Factory within 2009)
Transmissions for automobiles
Outboard engines (produced at Hosoe Plant)
Employment: Approximately 3,000 associates