This is Honda IN AMERICA

This is Honda IN AMERICA 2008

Honda s value to America is demonstrated by the company s ability to continuously develop and produce some of the industry s most innovative and fuel-efficient products, using domestic and globally sourced parts. Last year was Honda s 11th consecutive year of record-breaking U.S. sales. The company met this demand by increasing U.S. production. In the U.S., Honda has 1 research and development facilities, a highly skilled workforce of nearly 27,000 associates, and 10 plants currently building automobiles and a variety of other products for American customers. During the past three years, Honda has broken ground on six new facilities while expanding four existing facilities an investment totaling $1.2 billion. Honda s total capital investment in the U.S. reached more than $10.6 billion in 2007. This is where we invest. This is where we work. This is where we grow. This is Honda IN AMERICA The 2008 Honda Accord is produced in Marysville, Ohio.

Capital Investment Honda is experiencing the fastest rate of expansion in its history in the U.S. Since 2005, Honda has broken ground on six new facilities while expanding four existing facilities. This investment demonstrates Honda s philosophy of building products close to its customers, using domestic and globally sourced parts. That s why as sales in the U.S. increase, Honda s capital investment in plants grows. In fact, Honda strives to maintain production capacity to ensure that nearly 80 percent of the Honda and Acura vehicles sold in the U.S. are manufactured in North America. WA OR ID NV UT CA AZ HI MT ND MN WI SD WY IA NE IL CO KS MO NM OK AR MS TX LA AK VT NH NY MI CT RI PA NJ IN OH MD WV DE VA KY NC TN SC AL GA FL MA ME Honda in America A company investing in U.S. plants, products and people. Manufacturing Facilities R&D Centers Honda Suppliers States Honda Parts Centers Honda/Acura Auto Zone Offices American Honda Finance Corporation Auto Ports American Honda Motor Co., Inc. Sales Headquarters Future Manufacturing Facilities Honda Aircraft Company, Inc. Headquarters Dealers (in all 50 states) Capital Investment 1 2 n Honda s total capital investment in the U.S. reached more than $10.6 billion in 2007. n In 2007, Honda broke ground on a new $550 million auto plant in Greensburg, Indiana that will employ approximately 2,000 new associates. The new plant will produce fuel-efficient, four-cylinder Honda Civic sedans when it opens in fall 2008. n In 2007, Honda began a $50 million expansion of the Honda Precision Parts of Georgia transmission plant less than two years after the initial $100 million investment in the new facility. The plant manufactures parts that were previously produced in Japan. n Honda Aircraft Company, Inc., broke ground on its $100 million world headquarters, R&D center, and production facility in Greensboro, North Carolina. In nearby Burlington, Honda Aero, Inc., broke ground on a new $27 million fuel-efficient jet engine plant. n Honda s $75 million investment in the Anna Engine Plant in Ohio expanded its production of steel engine parts. n The $100 million investment in Honda s transmission plant in Russells Point, Ohio expanded production to include high-precision gears and rear differentials and also added hot forging operations. Honda s total capital investment in the U.S. reached more than $10.6 billion last year. Honda s Manufacturing Investment in America COMPANY LOCATION (OPENING DATE) CAPITAL INVESTMENT Honda of America Mfg., Inc. Marysville, OH (1982) Marysville, OH (1979) Anna, OH (1985) East Liberty, OH (1989) $.8 billion $169 million $1.5 billion $1 billion Honda Manufacturing of Alabama, LLC Lincoln, AL (2001) $1. billion Honda of South Carolina Mfg., Inc. Timmonsville, SC (1998) Timmonsville, SC (2002) $266 million 1: With a new $100 million expansion, Honda Transmission Mfg. in Ohio now produces high precision gears that were previously made in Japan. 2: Demonstrating its continuous investment in U.S. R&D capabilities, Honda opened the $15 million Acura Design Center in California last year. : In 2007, Honda opened an $89 million Midwestern Consolidation Parts Center in Troy, Ohio to supply parts to Honda s nine other distribution centers throughout the U.S. : In 2007, Honda Aircraft Company, Inc. broke ground on its $100 million world headquarters, R&D center, and production facility in Greensboro, North Carolina. Honda Power Equipment Mfg., Inc. Swepsonsville, NC (198) $192 million Honda Transmission Mfg. of America, Inc. Russells Point, OH (1996) $25 million Honda Precision Parts of Georgia, LLC Tallapoosa, GA (2006) $150 million UNDER CONSTRUCTION Honda Manufacturing of Indiana, LLC Greensburg, IN (2008) $550 million Honda Aircraft Company, Inc. Greensboro, NC (2009) $100 million Honda Aero, Inc. Burlington, NC (2010) $27 million

Employment A manufacturer that continues to create new, quality jobs. Honda has provided stable manufacturing employment for the past 29 years. The company is able to maintain this job security due to its flexible manufacturing systems that allow Honda to adjust model production to meet market demand. Honda also continues to offer its associates competitive compensation, health and retirement plans, including traditional pension and 01K programs. n Honda directly employed nearly 27,000 associates in America last year, with a U.S. payroll of approximately $1.9 billion. n In 2007, Honda began hiring associates to fill the 2,000 new jobs at the new auto plant in Greensburg, Indiana. n Honda encourages career growth through company-sponsored job training and educational assistance for job-related and business-related degrees, as well as certificate, technical and vocational programs. n Honda s relationship with more than 520 U.S. suppliers creates tens of thousands of manufacturing jobs while authorized Honda and Acura automobile dealers employ nearly 100,000 Americans. n Honda Manufacturing of Alabama, LLC has more than doubled its direct employment since opening in 2001 and has indirectly created 0,000 jobs in Alabama. n Honda s new Midwestern Consolidation Parts Center in Troy, Ohio created more than 100 new jobs when it opened in 2007. Employment 1 2 Honda s U.S. employment has doubled since 1998. Sales, Finance and R&D 2% Manufacturing 77% 77 percent of the jobs Honda creates in the U.S. are in manufacturing. 1: Associates suggestions are crucial to improving the quality, efficiency, ergonomics and safety of the manufacturing process in Honda s U.S. plants. 2: Honda creates jobs for researchers, designers and engineers in the U.S. : Authorized Honda and Acura automobile dealers employ more than 100,000 Americans across the U.S. : Honda s flexible manufacturing systems help maintain job security by adjusting model production to meet market demand. Associates in Thousands 0 27 2 21 18 Honda s U.S. Employment 15 12 9 6 0 1959 1979 1982 1985 1988 1991 199 1997 2000 2001 2002 200 200 2005 2006 2007

Production Since manufacturing its first product in the United States in 1979, Honda has steadily increased the number of models and components it builds in the U.S., using domestic and globally sourced parts. In 1982, Honda became the first Japanese manufacturer to build autos in the U.S. Today, Honda builds products with the goal of balancing environmental, safety, energy conservation and social responsibilities with its customers needs. 1 2 1: Honda s U.S. facilities perform all major operations of the manufacturing process casting, stamping, welding, painting and injection molding as well as assembling the final product. 2: All of the personal watercraft Honda sells worldwide are made in the U.S. : Investment in flexible manufacturing systems helps Honda meet the changing demands of the marketplace. : Honda continues to expand the number of models and components it builds in the U.S. Percent 90 80 70 60 50 0 0 20 10 0 Nearly 80 percent of Honda and Acura vehicles sold in the U.S. are manufactured in North America. 1982 1987 1992 1997 2002 2007 A long-standing commitment to build products close to its customers. n In 2007, Honda s U.S. factories built more than one million vehicles, breaking Honda production records. n Honda produced 1.6 million vehicle engines and 1.5 million general purpose engines in the U.S. last year many of which came from the Anna Engine Plant in Ohio, Honda s largest vehicle engine plant in the world. n Honda manufactured 02,000 power equipment products and 271,000 motorcycles, personal watercraft and all-terrain vehicles (ATVs) at its U.S. facilities in 2007. Nearly 90 percent of Honda ATVs sold in the U.S. last year were made in the U.S. Honda Manufacturing in America COMPANY LOCATION U.S. PRODUCTS PRODUCTION CAPACITY Honda of America Mfg., Inc. Marysville, OH Marysville, OH Anna, OH East Liberty, OH n Honda has shifted production of the Honda Pilot and Ridgeline from Canada to Alabama. This flexibility helps the Alabama plant reach its annual capacity of 00,000 vehicles and engines and maintains job security. n Honda has exported more than 800,000 automobiles to more than 100 countries during the past 20 years. n Demonstrating Honda s flexibility to produce both cars and light trucks on the same assembly line, the Acura TL and the Honda Accord are produced with the Acura RDX at the Marysville, Ohio auto plant, and the Civic is produced simultaneously on the same line as the Element and CR-V at the East Liberty, Ohio auto plant. Accord Sedan, Accord Coupe, Acura TL, Acura RDX Gold Wing 1800, VTX 1800 V-Twin Cruiser, VTX 100 V-Twin Cruiser -Cylinder Engines, V-6 Engines, Driveshafts, Brake Components Civic Sedan, Civic GX, Element, CR-V 0,000 Vehicles 75,000 Motorcycles 75,000 Engines 1.18 million Engines 20,000 Vehicles Honda Manufacturing of Alabama, LLC Lincoln, AL Odyssey, Pilot, Ridgeline, V-6 Engines 00,000 Vehicles 00,000 Engines In 2007, Honda built more than one million vehicles in the United States. Production Honda of South Carolina Mfg., Inc. Timmonsville, SC Timmonsville, SC Four Trax & SportTrax ATVs AquaTrax Personal Watercraft 0,000 ATVs 10,000 Engines 29,000 PWCs Honda Power Equipment Mfg., Inc. Swepsonsville, NC General Purpose Engines, Lawnmowers, Snow Throwers, Water Pumps, String Trimmers, Mini-Tillers Honda Transmission Mfg. of America, Inc. Russells Point, OH Automatic Transmissions, Transmission Gears, Rear Differentials 0,000 Units 2 million Engines 750,000 Transmissions 288,000 Transmission Gears 110,000 Rear Differentials Honda Precision Parts of Georgia, LLC Tallapoosa, GA Automatic Transmissions 00,000 Transmissions Honda Manufacturing of Indiana, LLC Greensburg, IN Civic Sedan 200,000 Vehicles* *Production to begin in fall 2008.

Research & development Honda s research and development operations are the creative heart and soul of the company s efforts to meet the needs of its customers. Honda s U.S. R&D Centers are responsible for the development of a variety of innovative models. These centers continue to expand the company s product development capabilities by fully integrating research, design and development. As long as there is a societal need for environmental protection, performance and safety, Honda will constantly challenge itself to seek out new initiatives and stay at the forefront of innovation. Honda was the first automaker to develop a solar-powered hydrogen fueling station. Commercial Power Supply 115V Honda-developed Solar Array Electrolyzer Compressor Tanks A company that invests 5 percent of its global revenues in R&D. 1 2 n In 2007, Honda opened the $15 million Acura Design Center in Torrance, California and the Advanced Design Studio in Pasadena, California. Honda now has 1 R&D facilities in the U.S. n A new advanced light jet, HondaJet, was developed and tested by Honda R&D Americas, Inc. in North Carolina. HondaJet will be assembled in North Carolina, with delivery of the first jet scheduled for 2010. n Four of the seven Honda and Acura light truck models sold in the U.S. were researched, designed and developed in North America the Honda Pilot, Element and Ridgeline, and the Acura MDX. n Honda operates two of the world s most advanced indoor crash safety research facilities one in Ohio and one in Japan. These centers conduct highly sophisticated testing to provide Honda with a deeper understanding of what happens in real world collisions and to assess new technologies. n Last year, Honda celebrated the 10th anniversary of the Honda Initiation Grant program. In the history of the program, Honda has awarded nearly $ million in advanced research grants to professors at several U.S. universities. Honda has 1 R&D facilities in the U.S. Research & development 1: Developed in the U.S., HondaJet will offer class-leading performance, comfort and fuel efficiency. 2: The all-new 2009 Honda Pilot was designed and developed in America. : American engineers, designers and other associates work for Honda s U.S. R&D operations. : Honda has 1 R&D facilities in the U.S. Honda s investment in U.S. R&D continues to grow. U.S. R&D LOCATIONS ACTIVITIES Cantil, CA Honda Proving Center; 7.5 mile test track Mountain View, CA Honda Strategic Venturing Pasadena, CA Advanced Design Studio Torrance, CA Torrance, CA Denver, CO Sebastian, FL Cambridge, MA Detroit, MI Greensboro, NC Swepsonville, NC Columbus, OH Raymond, OH Acura Design Studio Honda Design Studio; Automobile and motorcycle research and development Automobile research and development Marine engine research Computer science research Automotive research Aircraft research Power equipment research and development Material science research Automobile and motorcycle research and development

Honda s environmental leadership is demonstrated by its investment in new technologies. environment & energy During the past 15 years, Honda has achieved the highest fleet average fuel economy of any automaker.* For the fourth consecutive time, the Union of Concerned Scientists recognized Honda as the Greenest Automaker for leading the industry with the lowest average vehicle exhaust emissions and highest average fuel economy. These achievements result from Honda s commitment to develop and implement technology aimed at improving both customer and social needs. 197 First car to meet 1970 Clear Air Act standards without catalytic converter the Civic CVCC First mass-produced car to break the 50 mpg fuel economy mark the CRX First gasoline Ultra-Low Emission Vehicle (ULEV) the Accord 198 1997 First gasoline-electric hybrid in the U.S the Insight First production motorcycle to meet 2008 emission standards the Gold Wing 1999 2001 First AT-PZEV vehicle certified in California the Civic GX natural gas vehicle 2002 2005 V Flow Fuel Cell Stack first debuts in FCX Clarity 2007 First production fuel cell vehicle to be leased to consumers the FCX A focus on vehicle efficiency, alternative fuels and reduced emissions. 1 2 1: The all-new Honda FCX Clarity fuel cell vehicle emits no carbon dioxide or harmful pollutants and will be available for lease in California on a limited basis in 2008. 2: The 2008 Civic Hybrid achieves an EPA city/ highway fuel economy rating of 0/5 MPG. : Honda is working to reduce its environmental impact through its Green Buildings initiatives that include increasing energy efficiency, reducing waste and enhancing recycling activities. : In 2007, Honda and Climate Energy, LLC began retail sales of Freewatt, their collaborative Micro-sized Combined Heat and Power cogeneration system for homes, which features advanced and highly efficient energy management technologies. n Recognizing no single technology currently addresses all environmental challenges, Honda works to maximize the efficiency of the internal combustion engine, expand gasoline-electric hybrid technology, and develop alternative fuel vehicles such as fuel cell vehicles. n To improve fuel economy, most new V6-powered Honda Accords and Odyssey minivans are equipped with Honda s secondgeneration Variable Cylinder Management (VCM) technology, allowing the engine to operate on three, four, or all six of its cylinders depending on engine loads. n Honda will introduce an all-new, efficient and more affordable dedicated hybrid car to U.S. consumers in 2009, demonstrating the company s continuing investment in advancing hybrid technology. n The Civic GX natural gas vehicle is being marketed with Phill, a natural gas home refueling appliance, in New York and California to provide convenient, at-home refueling at less cost than gasoline. Phill expands the accessibility of the widely available CNG fuel beyond fleets to retail customers. n The FCX Clarity features the new Hondadeveloped V Flow fuel cell stack that is 20 percent smaller and 0 percent lighter than the previous Honda fuel cell, yet has greater power, higher efficiency, longer range and superior cold-weather performance. n Honda is developing a clean diesel engine that will reduce NOx exhaust emissions to meet stringent U.S. EPA Tier 2 Bin 5 emission standards the same level as a clean gasoline engine. A vehicle equipped with this new i-dtec engine will be introduced in the U.S. in 2009. For the fourth time, the Union of Concerned Scientists recognized Honda as leading the industry with the highest fleet average fuel economy and the lowest average vehicle exhaust emissions. Environment & Energy Miles Per Gallon 5 0 25 During the past 15 years, Honda has achieved the highest fleet average fuel economy of any automaker.* Passenger Car Federal Standard Honda/Acura Industry Average 20 Light Duty Truck Federal Standard 15 1990 1991 1992 199 199 1995 1996 1997 1998 1999 2000 2001 2002 200 200 2005 2006 2007 Source: National Highway Traffic Safety Administration * Average sales-weighted fuel consumption for 1992-2007 mid-model year passenger-car and light-truck fleets sold in the U.S. based on final CAFE reports through 2006 and 2007 mid-year reports.

Honda is an industry leader in crash safety technology. safety Honda believes everyone deserves advanced levels of safety, regardless of the price or size of the automobile that meets their needs. Through technology and innovation, Honda is developing enhanced levels of protection for the driver and all passengers in Honda and Acura vehicles. At the same time, the company is making an active commitment to address safety for the occupants of other vehicles and pedestrians. Honda looks beyond government regulations by studying real world situations to develop new safety technologies. MODEL YEAR VEHICLE ACHIEVEMENT 2000 Honda Odyssey First minivan to earn 5-star NCAP and 5-star SINCAP ratings with standard equipment. 2001 Honda Civic Coupe with side airbags 2002 Acura MDX Honda CR-V 2006 Honda Ridgeline Honda Civic First coupe and first compact car to earn 5-star NCAP and 5-star SINCAP ratings. First mid-size SUV and the first luxury-brand SUV to earn 5-star NCAP and 5-star SINCAP ratings. First compact SUV to earn 5-star NCAP and 5-star SINCAP ratings. First four-door pickup to earn 5-star NCAP and 5-star SINCAP ratings. First small car to earn Insurance Institute for Highway Safety Top Safety Pick Gold Award with highest ratings in frontal, side impact and rear crash tests. 2007 Fleet Honda has the most vehicles earning NHTSA 5-star frontal, NHTSA 5-star side impact and IIHS Top Safety Pick designation. NCAP = New Car Assessment Program SINCAP = Side Impact New Car Assessment Program A decision to make advanced safety features standard on our vehicles. 1 2 n More than 85 percent of the Honda and Acura passenger vehicles sold in 2008 will feature the unique Honda Advanced Compatibility Engineering (ACE ) frontal body structure for enhanced occupant protection and crash compatibility with different sized vehicles in frontal collisions. n More than 99 percent of all Honda and Acura models sold in the U.S. in 2007 earned NHTSA s top 5-star crash safety rating in the New Car Assessment Program frontal crash test. n Honda was the first company to voluntarily display on window stickers the crash test star ratings of vehicles tested under NHTSA s New Car Assessment Program. n Though there is no U.S. government requirement, nearly 8 million Honda and Acura vehicles on the road today feature technologies designed to reduce injuries to pedestrians, including an energy absorbing hood structure and windshield wiper pivots and hood hinges that are designed to give way. Honda is installing advanced safety features on Honda and Acura vehicles, regardless of size or price.* 1: Honda engineered the world s first production motorcycle airbag system which is available on the Gold Wing. 2: Honda equips every passenger vehicle it sells in the U.S. with side impact and side curtain airbags as standard equipment, regardless of size or price.* : The Acura RL is available with Honda s Collision Mitigation Braking System (CMBS ) which monitors potential rear-end collisions, uses audio, visual and tactile signals to alert drivers to the risk of collision, and assists brake operation. : Polar II, the world s most sophisticated pedestrian dummy, was developed by Honda for use in safety testing and research. n As part of its Safety for Everyone initiative, Honda is installing advanced safety features on all Honda and Acura vehicles sold in the U.S., regardless of size, price and even when not required by law.* HONDA NHTSA NCAP 5-star Frontal NHTSA SINCAP 5-star Side Impact IIHS Top Safety Pick Element Odyssey Pilot Ridgeline Accord Civic CR-V Fit S2000 ACURA MDX RL RDX TL TSX n Honda is the only major auto manufacturer with 100 percent of its light trucks earning NHTSA s highest 5-star crash safety rating for both frontal and side impact crash tests. Honda and Acura models achieve the highest crash safety ratings. Source: Government star ratings are part of the National Highway Traffic Safety Administration s (NHTSA s) New Car Assessment Program (www.safercar.gov). Source: Insurance Institute for Highway Safety Safety * Not all features available on limited volume specialty vehicles, including the S2000.

PARTS PROCUREMENT & suppliers Honda has worked with U.S. suppliers to develop original equipment manufacturing and service parts since 1979. Honda s U.S. suppliers engineer and manufacture parts for Honda s U.S. facilities, as well as export parts to the company s global operations. This partnership strengthens the U.S. automotive industry and the ability of U.S. suppliers to compete in the global marketplace. Number of Suppliers Honda s U.S. supplier base has more than doubled since 1992. 700 600 500 00 00 200 100 0 1992 199 199 1995 1996 1997 1998 1999 2000 2001 2002 200 200 2005 2006 2007 A partnership with suppliers throughout design and production. 1 2 1: Honda suppliers and Honda engineers work together to efficiently create parts of the highest quality. 2: Honda encourages suppliers to take a green factory approach to all of their operations by increasing the use of returnable packaging and adopting other energy-efficient techniques. : The Honda Accord and Civic and the Acura TL each exceed 80 percent in domestic content.* : Honda has partnered with U.S. steel makers to advance production of high-strength steel in the U.S. n More than 520 Honda suppliers in states provide the parts and materials to assemble Honda and Acura products in the U.S. n In 2007, Honda purchased $18.8 billion in parts and materials in North America $17.1 billion were purchased from U.S. suppliers. n Honda purchased nearly $1 billion in parts, materials and other goods from minority-owned U.S. suppliers last year. n With Honda s encouragement and assistance, more than 60 percent of all of its U.S. original equipment suppliers have achieved third-party ISO 1001 certification for environmentally sound production processes. n More than 2,000 Ohio companies supply maintenance, repair and operational (MRO) services to Honda s four Ohio plants. n Honda, along with the Rainbow/PUSH Coalition, developed the Automotive Project and sponsors an annual Minority Automotive Supplier Conference. Honda s purchase of U.S. parts and materials increased by $1.5 billion in 2007. *Using the CAFE local content reporting regulation. Billions of Dollars 19 17 15 Honda purchased more than $18.8 billion in North American parts and materials last year. 1 11 9 7 5 Parts & Suppliers 199 1995 1997 1999 2001 200 200 2005 2006 2007

1 2 Honda invests in communities throughout the nation, including those in which our associates work and live. 1-2: Living Classrooms Washington DC area. : Habitat for Humanity Alabama. : Rolling Readers Southern California. 5: Special Olympics Southern California. 6: Pediatric Brain Tumor Foundation Ride for Kids Ohio. 6 Capital Investment Environment & Energy 5 Honda s total capital investment in the U.S. reached nearly $10.6 billion in 2007. Employment Honda directly employed nearly 27,000 associates in America last year, with a U.S. payroll of approximately $1.9 billion. Production Last year, Honda s U.S. factories built more than one million vehicles, using domestic and globally sourced parts. During the past 15 years, Honda has achieved the highest fleet average fuel economy of any automaker. Safety Honda has the most vehicles earning NHTSA 5-star frontal, NHTSA 5-star side impact and IIHS Top Safety Pick designation. Parts PROCUREMENT & Suppliers Honda purchased $17.1 billion in parts and materials from U.S. suppliers in 2007. Research & Development Honda established its first U.S. R&D operations in 1975 and today has 1 R&D facilities in America. This is Honda IN AMERICA

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