|Honda to Supply Complete Outboard Motor Line-Up to Nissan via OEM Agreement|
|Tokyo, November 2, 1998 --- Honda Motor Co., Ltd. has announced that under an OEM supply agreement it has signed with Nissan Motor Co., Ltd., from January 5, 1999 it will commence manufacturing and supplying Nissan with the complete range of Honda's 4-stroke outboard motors. This popular range of powerful motors, which includes 13 models ranging from the BF2 to the BF130, boasts quiet operation, low fuel costs and clean emissions.
In recent years, as the leisure marine craft market has grown in Japan, increased user demands for quiet, highly reliable, low-pollution 4-stroke motors that are highly economical on fuel have been matched by heightened environmental concerns. Reflecting this trend, the Japan Boating Industry Association has established a voluntary code of standards that targets exhaust emission reductions in the motors used in marine craft.
In the over-50 PS class, the proportion of boats being sold in a package deal together with their outboard motor now accounts for some 70% of outboard motor sales in this market segment. The number of such sales packages combining a Honda outboard motor with a Nissan Marine boat is also on the increase. Accordingly, the commercial logic behind the OEM agreement is to combine the benefits of Honda's expertise in outboard motors with that of Nissan in boat building. The scope of the agreement is limited to the Japanese market, and is expected to represent an annual production volume of about 800 units.
Under a variety of existing OEM supply agreements, Honda already manufactures about 30,000 units per year of products of different types for other firms - this range includes both general-purpose engines and power generators.
Outline of Honda's range of 4-stroke outboard motors