News Releases 2003

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Corporate
Japan
July 1, 2003

Honda to Transfer Niche Car Production to Suzuka Factory to Further Improve Efficiency; Honda Engineering Co. to Centralize Operations

July 1, 2003 - Honda will transfer production of speciality, low volume cars, including the NSX, Insight and S2000, to a new small volume production line to be established at its Suzuka Factory in summer 2004. Each model is currently produced at the Takanezawa Factory in Tochigi. 

Engine production for these models, currently supplied by Honda Engineering Co., Ltd., also will be transferred to the engine plant at Suzuka Factory. As a result, Honda will establish a more efficient system for niche car production by producing engines, transmissions, and bodies in one location. Honda Engineering currently assembles engines for low volume production vehicles utilizing molded and machined parts from Suzuka factory, Sayama factory and parts suppliers. 

After the transition is complete, the Takanezawa Plant will be utilized by Honda's adjacent New Model Center, which supports and coordinates new model launches at all major Honda automobile factories around the world, and by the Honda R&D Co., Ltd. Tochigi Center. The move will enhance Honda's test production activities and new model development. 

Further, Honda Engineering Co., Ltd., a wholly-owned Honda subsidiary that develops and produces manufacturing equipment, will centralize all its functions at its Tochigi Technical Center, by transferring the entire responsibility of its Head Office in Saitama Prefecture. This will improve efficiency by integrating all activities in one location. The transfer will begin in summer 2004 and is expected to take about one year. Currently, the Saitama Head Office, located adjacent to the Saitama Factory, develops and manufactures production equipment, while the Tochigi Technical Center researches production technologies. Honda's Saitama Factory will utilize Honda Engineering's current head office space for logistics, expansion of green space and for work on experimental production technologies.