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Honda Tips Its Hat to Siemens' Plants

28 July 2000

Three Siemens Automotive Facilities Earn Honda Quality Performance Awards
    AUBURN HILLS, Mich. - Siemens Automotive's Juarez, Chatham and Tilbury 
facilities have received 1999 Honda Quality Performance Awards in recognition 
for continuous dedication toward the advancement of quality.  Honda Senior 
Manager of Parts Quality Walter Henderson presented the award to company 
employees at the Juarez facility during a ceremony held on June 22.

    "This achievement is impressive in light of the rapid succession of new
product launches and capacity expansion we successfully supported with Honda
over the last year," said Stuart Nishi, Siemens Automotive Director - Sales.
"Honda is very committed to reducing lead time for new model introductions to
quickly meet customer demands.  It is an intensive challenge in partnership
with Honda to flexibly adapt to the rapid new model and design changes, while
keeping pace with Honda's North American production of a million vehicle and
engines per year."

    Siemens Automotive received the award during Honda's annual Supplier
Conference, where 98 North American suppliers were recognized for exceptional
performance in the areas of quality, delivery and productivity improvement
during the company's fiscal year from April 1, 1999 through March 31, 2000.

    "Honda suppliers will play a crucial role to help achieve our goals to
become the most efficient and flexible manufacturer in the industry with speed
to rapidly execute change," said Larry Jutte, general manager of Honda of
America Manufacturing (HAM) Part and Procurement and vice president and
general manager of HAM Motorcycle and Powertrain manufacturing operations.
"Our suppliers will have to be innovative to gain operation efficiencies,
eliminate waste, reduce inventories and shorten lead time for new model
introductions."

    The award covers the contributions of three separate Siemens Automotive
operations and their research and development, quality, production and
production launch support teams:

    *  Chatham, Ontario Location -- Home of Siemens Automotive's worldwide
emissions technology expertise, Chatham supplies Honda with electric exhaust
gas recirculation valves (EEGRs).  EEGRs are a complex emissions component
designed to allow appropriate mass flow in the partial load range, while
ensuring precise regulation of low exhaust gas recirculation rates.  The
Siemens EEGR valve was among the technologies used in Honda 1998 Accord
engines, making it the first car sold in the United States to meet
California's stringent Low Emission Vehicle (LEV) standard, with one model
being the first production automobile certified as an "Ultra-Low Emission
Vehicle" (ULEV).

    *  Juarez, Mexico Location -- Juarez supplies Honda with emissions
components and sensors.

    *  Tilbury, Ontario Location -- Tilbury supplies Honda with air induction
components and systems, including air cleaners and resonators.

    The Siemens locations supporting Honda, like the Juarez facility, meet the
customer's increasing manufacturing demands without sacrificing quality by
placing a heavy focus on process planning and equipment and product
improvements.

    "We use a variety of process planning tools that help us trouble shoot
before production starts.  If an issue arises on the production line, we get
the operators involved in managing a solution," said Peter Reschke, Siemens
Automotive director of operations - Juarez.  "Everyday we work to improve the
performance of our manufacturing machines and to better the product.  We will
redesign our manufacturing machines to improve quality and efficiency, making
ergonomic modifications for the people that use them.  We try and change the
machine to better fit our operators, not change the operators to better fit
the machine."

    In the 1998/99 fiscal year (ended September 30), Siemens Automotive, which
employs a workforce of 27,000 and is globally present at more than 80
locations, increased its business volume by 15 percent to $3.6 billion.

    With approximately $490 million invested in research and development,
Siemens Automotive is reinvesting more than 12 percent of its sales, a figure
far higher than the international average in this sector.  Siemens Automotive
is a development partner and supplier of electrical and electronic systems and
components for engine management, including gasoline and diesel direct
injection, for transmission and chassis controls, car body electronics and
passenger safety systems, focusing on the airbag electronics.  Further
activities encompass electrical distribution systems, driver information as
well as electric motor drives and drive systems for electric vehicles.