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PRESS RELEASES



Japan Tsunami Update #8 - effective: March 25, 2011

(Note: new information in this update appears in boldface type)

Honda would like to express its deepest sympathy and condolences to the victims of the earthquake in Japan, and our sincere hopes for the earliest possible relief and recovery of the affected areas.

Japan

Damage was widespread in the Tochigi area, where Honda has a number of operations. Honda Motor Co., Ltd. has confirmed the fatality of a Honda R&D associate at the Tochigi R&D Center, when a wall collapsed in a cafeteria. The associate was male, 43 years old.

In addition, 17 Honda associates were injured in the Tochigi area from collapsing ceilings and other damage during the earthquake (initial reports put the number of injured at 30).

Japan Operations

Honda had previously announced the suspension of production through Sunday, March 27. Today, Honda decided to extend the suspension of the production of finished units of automobiles at Sayama Plant at Saitama Factory (Sayama, Saitama) and Suzuka Factory (Suzuka, Mie) through Sunday, April 3, 2011.

Concerning operations from April 4 on, Honda will make decisions based on the status of the recovery of Japanese society as a whole as well as the supply of parts. While most of our Japan-based suppliers are making progress to restart production, and many either have or are ready to resume parts production, there are a few suppliers that have yet to resolve the challenge to resume their production. In those cases, Honda is working with its suppliers to help reestablish their operations, while evaluating other possible sources for those parts in the supply chain. Please understand that Honda is making every effort to work toward a full recovery as quickly as possible. We appreciate everyone’s understanding during these challenging times.

Honda will resume motorcycle and power product production at Kumamoto Factory (Ozu-machi, Kikuchi-gun, Kumamoto) on Monday, March 28.

Recovery of Operations in the Tochigi Area

The impact of the earthquake was more severe at the Tochigi Factory (Moka, Tochigi), however, repair and inspection activities were completed for almost all facilities and equipment.

At other operations, including the Automobile R&D Center (Tochigi) of Honda R&D Co., Ltd. and Honda Engineering Co., Ltd., associates who will work on the restoration started returning to work. However, based on the expectation that it will take several months until the complete recovery of these facilities, Honda will to temporally transfer some functions such as automobile product development, development of manufacturing technologies and procurement to Honda operations in other locations such as Sayama, Suzuka, and Wako.

Honda is cooperating with electricity conservation efforts and rolling blackout measures, prioritizing the relief and recovery of affected areas. Our decision to resume production could be affected by the needs of Japanese society as a whole.

Honda has made contact with all Tier 1 suppliers in Japan and is collecting information from them regarding the status of their operations.

Aid

With the hope to contribute to the earliest possible relief and recovery of affected areas, Honda will provide the following aid:

From Honda in Japan, 300 million yen (approximately $3.7 million) toward the relief and recovery effort

A total of 1,000 generators (gasoline-powered and home-use gas canister-powered), along with 5,000 gas canisters. Honda also will dispatch its staff to explain the use of this equipment.

The Honda family of companies in North America have established special matching gift programs for their associates to donate to the Red Cross to aid the victims of the earthquake and tsunami in Japan. Donations from associates will be matched on a dollar-for-dollar basis, with no personal or corporate donation limit. Honda employs more than 29, 000 associates in North America.

North American Operations

Honda has confirmed the well-being of all Honda associates on assignment in Japan from North America.

More than 95% of Honda and Acura products sold in Canada are produced in North America, and the vast majority of automotive parts for Honda automobiles manufactured in North America are sourced in the region. The following information updates Honda’s production situation as it impacts the supply of Honda and Acura cars and light trucks to the North American market.

In North America, our automobile plants will continue normal production through April 1. Due to concerns related to the supply of a few critical parts from Japan, Honda Associates working at these North American plants were informed on Friday, March 25, that there is likelihood that we will experience some temporary interruptions to North American vehicle production after that date, until the parts supply issues are resolved.

The vast majority of Honda’s parts and materials are sourced here in North America. However, for global efficiency, a few critical parts continue to be supplied from Japan. Most of our Japan-based parts suppliers have either resumed production or are ready to restart their operations. However, there are a few suppliers which have yet to resolve the challenge to resume their production. In those cases, Honda is working with its suppliers to help reestablish their operations, while evaluating other possible sources for those parts in the supply chain.

Teams throughout North America and global Honda are working diligently to overcome these temporary parts flow issues and minimize the impact on Honda associates, dealers and customers.

As parts supply stabilizes and full auto production resumes, Honda will quickly develop a production schedule to meet the needs of Honda and Acura customers.

This is a very fluid situation, so we are not able to provide more detailed information at this time. We will communicate further details as they are confirmed and become available. Thank you for your continued patience and understanding.

On March 17, certain U.S. news reports inaccurately suggested that Japan-based production of vehicles intended for sale in the United States would be suspended until May. This is not what we communicated.

Honda has announced a suspension of Japanese production only through April 3, 2011 (see Japan Operations, above).

The following vehicles we build in North America are supported primarily by our base of 600-plus North American first-tier suppliers:

Alliston, Ontario - Honda Civic (Sedan, Coupe, and Si Sedan & Coupe) Acura MDX, Acura ZDX, Acura CSX
Marysville, Ohio - Honda Accord, Honda Accord Coupe, Acura TL, Acura RDX
East Liberty, Ohio - Honda CR-V, Honda Element, Honda Accord Crosstour
Greensburg, Indiana - Honda Civic Sedan, Honda Civic GX natural gas
Lincoln, Alabama - Honda Odyssey, Honda Pilot, Honda Ridgeline
El Salto, Mexico - Honda CR-V (for Mexican distribution Only)

We currently have adequate inventory of products supplied from Japan.
 
Honda Fit, Insight, CR-Z, Civic Hybrid, Acura TSX and Acura RL are produced in Japan for the North American market.

Honda’s operations in North America and globally will do everything they can to support the recovery of Honda’s operations in Japan.

For further information, contact: Richard Jacobs, Honda Canada PR Manager, at 905.888.4102