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Honda Breaks Ground for New Plant in Alabama    

26 April 2000

Honda Breaks Ground for New Plant in Alabama    

                       Production Will Be Accelerated;
               Plant Will Produce Odyssey Minivan in Late 2001

    LINCOLN, Ala., April 25 Honda Manufacturing of Alabama,
LLC (HMA) broke ground today for its new auto and engine plant in Lincoln by
announcing it will accelerate the production launch from the original
timetable of April 2002 to late 2001, and invest an additional $40 million to
add new production operations.  This will bring HMA's total initial investment
in Alabama to $440 million.
       (Photo:  http://www.newscom.com/cgi-bin/prnh/20000425/ATTU014 )
    HMA also announced that when the plant opens in late 2001 it will begin by
turning out the hot-selling Honda Odyssey minivan and its V-6 engine.
    Honda Motor Co., Ltd. (NYSE: HMC) President and CEO Hiroyuki Yoshino and
Lincoln Mayor Carroll L. "Lew" Watson broke ground using Honda tillers, rather
than a shovel, on the 1,350-acre site 40 miles east of Birmingham.  Other
Honda and community, state and federal officials participating in the ceremony
included HMA President Mikio Yoshimi, Alabama Governor Don Siegelman,
Congressman Bob Riley (R-AL) and local students.
    "We are breaking ground for more than a factory," said Yoshino.  "We are
breaking new ground with a unique, comprehensive facility that will build
vehicles and engines.  And we are breaking new ground in our relationship with
the people of Alabama."
    Accelerating the start-up of mass production reflects the immense
popularity of the Odyssey minivan since its fall 1998 introduction.  "Stepping
up the start date for production demonstrates how important this new facility
is to Honda," said Yoshimi, HMA's first president.  "The fact that we will add
several new operations to what we originally announced last year also
demonstrates our commitment to Alabama."
    Expanding on its original plans, announced May 6, 1999, HMA will add
several additional operations, including stamping of steel body parts, plastic
injection molding and low pressure die-casting.  These manufacturing processes
mean that more of the substantial vehicle and engine production operations
will be performed in Alabama.
    "Respectful of each other, respectful of the local environment and
reflective of Alabama's diverse community, Honda associates in Alabama will
work together to realize their own dreams," said Yoshimi.
    "Honda has made more than an investment in Lincoln, it has placed its
trust in Lincoln," said Mayor Watson.  "In the not too distant future, when
Alabama associates begin building world-class products for Honda, I know Honda
will be happy with their decision."
    Governor Siegelman spoke of a growing new partnership.  "It is here, at
this site, that we build a foundation, a strong, unshakeable foundation, upon
which Honda and Alabama will build their future together," he said.  "It is
here, at this site, that a company will rise, taking the best of Alabama and
uniting it with the best of Honda."
    HMA expects to begin interviewing non-exempt (production) associates this
summer with the formal hiring process to begin in fall 2000.  HMA will employ
approximately 1,500 associates when it reaches its twin annual capacities of
120,000 vehicles and 120,000 engines.
    Every major Honda plant in America and worldwide meets the strict ISO
14001 international environmental management standards.  "While specific
measures are still being finalized, we anticipate that HMA will be one of the
lowest emissions auto plants in the U.S.," said Yoshimi.
    When completed, HMA will increase Honda's capital investment in the U.S.
to more than $5.2 billion, increase U.S. employment to more than 20,000
associates and bring to ten the number of major Honda manufacturing plants in
North America, all domestic and globally-sourced parts.
    Together with production increases at Honda's four other auto plants in
the U.S., Canada and Mexico, HMA will help boost total North American auto
production capacity to 1.16 million units by 2003.
    Honda is the world's preeminent engine-maker, building more than
10 million engines globally per year.  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 automobile manufacturing in the U.S. in 1982.  Honda designs,
manufactures and markets its products in North America and worldwide.  Honda
currently builds products in nine manufacturing plants in North America, with
three major research and development centers in the U.S.