Honda-The Power of Dreams
Dongfeng Honda to Quadruple Automobile Production Capacity in China

WUHAN, China, November 8, 2004 - Dongfeng Honda Automobile (Wuhan) Co., Ltd. (WDHAC), the automobile production and sales joint venture of Honda and Dongfeng Motor Corp. in China, today announced plans to expand its annual production capacity from the current 30,000 units to 120,000 units by early 2006. The construction to expand the existing plant is planned to begin within this year, with total investment expected to be approximately 2.8 billion R.M.B. (approximately US$ 340 million.) The plant will employ approximately 2,800 associates at full capacity.

Major construction activities to expand the annual capacity to 120,000 units will include more than tripling the size of plant buildings, major changes in facility layout, building a new painting facility, adding processes of stamping, plastic injection molding, engine parts processing, in addition to upgrades of existing equipment and processes. Further, WDHAC will strengthen its R&D operations. Through this expansion, the WDHAC plant will adopt Honda’s flexible New Manufacturing System to achieve Honda’s global standard for advanced levels of quality, efficiency and flexibility, as well as Honda’s “Green Factory” concept – to create a more people- and environmentally-friendly factory.

WDHAC was established as a new joint venture company in July 2003 when Honda and Dongfeng Motor Corp. changed the capitalization ratio and company name of the former Wuhan Grand Motor Co., Ltd., which was located in Wuhan, Hubei province in China. WDHAC began production of the Honda CR-V in April this year by renovating and upgrading the former Wuhan Grand Motor Co. facility.  The existing plant has welding, painting, assembly and final inspection lines, with an annual production capacity of 30,000 units.


CR-V


Dongfeng Honda will continue to meet the growing needs of the Chinese market by adding new models into production, including the Honda Civic, once the capacity is increased to 120,000 units.



About Dongfeng Honda Automobile (Wuhan) Co., Ltd.

Established: July 2003
Capital Investment: US$ 98 million
Capitalization Ratio: 40% Honda Motor Co., Ltd.
10% Honda Motor (China) Investment Co., Ltd.
50% Dongfeng Motor Industry Investment Corp., Ltd.
Location: Wuhan, Hubei Province,
Economic and Technological Development Area
Representative: Zhou WenJie, Chairman
Mitsuru Ozaki, President
Employment: Approx. 930 associates
(to be increased to 2,800 associates by 2006)
Start of Production: April 2004
Products: CR-V (production of Civic to begin in 2006)
Annual Capacity: 30,000 units (to be increased to 120,000 units by 2006)
Size: 370,000m2 (to be expanded to 520,000m2 by 2006)

Building size: 50,000m2 (to be expanded to 181,000m2 by 2006)