HONDA: A SUCCESS STORY IN THE U.S.

DETROIT, Jan. 10 – Honda Motor Co., Ltd. established itself as a global competitor in the automotive arena with a commitment to deliver quality products at outstanding value.

Today, Honda's leadership has been confirmed by decades of awards for customer satisfaction, design and engineering, innovation and overall excellence. In 1999, the company sold more than 2.3 million automobiles in more than 140 countries around the world.

That’s a long way from 1970 when American Honda Motor Co., Inc. began selling automobiles in the United States, with just one model, the N600.

Honda built its strength in the U.S. with passenger cars, such as the popular Civic and Accord. Honda then entered the sport coupe segment with the CR-X, followed by the Prelude, Accord Coupe and Civic Coupe. Most recently, Honda has established a benchmark in both the small sport utility and minivan categories, with the CR-V and Odyssey. In addition, the company's launch of the Acura luxury division in 1986 started a new trend in the automobile industry.

In 1999, American Honda topped the million sales mark for the second year in a row with an all-time record of 1,076,893 units. Honda Division posted record sales of 958,887 units, while Acura Division recorded its fourth consecutive annual sales increase of 118,006 units.

More than 75 percent of Honda and Acura vehicles sold in the U.S. are assembled in North America, using nearly 450 North American suppliers. Domestic content of those vehicles exceeds 90 percent.

Honda was the first Japanese automaker to establish manufacturing operations in the U.S., first with motorcycles in 1979 and then with automobiles in 1982. Today, Honda has three major automobile manufacturing plants in North America. Honda plans to increase its auto production capacity in North America from 960,000 units in 1999 to 1.13 million units by the year 2003.

Current expansions include a new $400 million plant in Lincoln, Ala., for the annual production of 120,000 minivans or SUVs as well as 120,000 engines.

Honda established research and development centers in the U.S. in 1975. Honda R&D Americas, with facilities in Torrance, Calif., and Marysville, Ohio has been responsible for design and development of the Accord Coupe, Civic Coupe, Acura CL and TL and Accord Wagon.

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