Honda-The Power of Dreams
Honda’s New Civic Starts Mass Production

· Volume production begins at  Swindon, UK car and engine factory

· Honda targets 50 per cent increase in European Civic Sales

United Kingdom, October 13, 2005 – Honda of the UK Manufacturing Ltd (HUM) reached a major milestone as mass production of the 8th generation Civic, a unique 5 door hatchback for Europe began at its EUR 2 billion production operation in Swindon, Wiltshire.  Volume production begins just seven months after the concept version was unveiled at the Geneva Motor Show, underlining the company's long term commitment to building cars in the UK.


Left to right: Mr Takagi, Mr Kato and Mr Hirashima with the Rt Hon Ian Pearson MP, Minister of State for Trade.


The new car is scheduled to go on sale in January 2006 and, with other new models in the Civic range to be launched over the next 12 months, is expected to boost European sales of the Civic series by as much as 50% up to 120,000 sales within the next two years.

Underlining the maturity of Honda’s UK car and engine manufacturing operations, the start of volume production of this new Civic at Swindon will be the first time that the plant has progressed a new model to mass production in the UK without the car being produced in a Japanese parent plant, a testament to the engineering skills of Honda's 4,000 Associates at the site.

Mr Shigeru Takagi, President of Honda Motor Europe, commented, “Our goal has been to create a car that revolutionizes the market, a product that makes other cars look outdated. We have made no compromises in the development of this vehicle and in every way the all new Civic represents a dynamic shift towards the premium end.”

“The British-built Civic has a key role to play in our model line-up as we expect to be selling 120,000 Civics in 2007; a 50 per cent increase on current sales. For Honda’s European operation, this is the most important launch in its history.”

A second engineering ”first” is the company’s production start-up of diesel engines on the same line as it currently produces petrol engines – seen as unique in the British car industry.

Honda in Swindon started building cars in 1992. Today it will produce the 1.5 millionth car, clearly demonstrating its long term confidence in UK manufacturing and Swindon, in particular, as a center of excellence.

The new UK-built Civic hatchback will feature Honda’s acclaimed, high-performance 2.2 i-CDTi diesel engine, an all-new and highly efficient 1.8 liter i-VTEC petrol engine and a 1.4 i-DSI petrol engine.

Honda of the UK Manufacturing Ltd (HUM) - Key Facts
· Honda of the UK Manufacturing Limited is a fully integrated car manufacturing facility, producing the total Car (Engine casting and Pressing) on the one site in Swindon

· Honda has invested EUR  2 billion in its manufacturing operation in Swindon

· 75% of the cars produced at Honda of the UK Manufacturing Limited are exported outside the UK

· In 2004 HUM produced 193,000 units.

· On 13th October the 1.5 millionth car was produced.

· In 2005, the production volume is expected to be around 186,700 units, slightly lower than 2004, due to the Civic change over in October  2005

·
At full production level with a 3 shift operation : 870 cars per day

·
No.1 line (CR-V & Civic 5Dr Jan 2006) : 600 units/ day (2 shifts)

·
No.2 line (Civic5Dr) : 270 units/ day (1shift)

·
Engine : 1000 units/day (2 shift)

·
Employment Total : 4000
  Car Plant 1 : 2220
  Car Plant 2 :   700
  Engine : 1100

· 80% of Associates live in within a 30 mile radius of the operation.

· The 2006 Civic is the 9th new model to be produced at HUM in Swindon.

· As the new Civic is unique to HUM, over 100 UK based production Associates were involved in the new model development in R&D, Japan,  where they actually built the prototype car on a pre-production line. They suggested improvements to the car and/or the processes, learnt how to build the car and then to train fellow Associates at HUM.

· HUM currently has 200 1st Tier suppliers. Although many supplier have offices in the UK , manufacturing is conducted all over the world. Most Tier 1 suppliers are global companies.

Honda of the UK Manufacturing Ltd (HUM)-  Significant dates
1985 HUM Established

1985 HUM operational - Pre-Delivery Inspection

1989 Engine Plant production begins

1992 -Car Manufacturing starts in No 1 Car Plant
-Second Engine Line installed

1995 Press Facility established

1996 10th Operational Anniversary

1998 -1 millionth engine produced
-250,000th Civic

1999 -500,000th car produced
-10 year Anniversary of Engine Production
-250,000th  Accord

2000 CR-V production begins

2001 -No 2 Car Plant starts production
-Civic Type-R exported to Japan

2002 -CR-V exported to North America
-10 year Anniversary of Car Production
-Press Facility expansion
-End of  Accord Production

2003 -1 millionth car produced
-1.5 millionth engine produced

2004 -250,000th  CR-V
-15 year Anniversary of Engine Production

2005 -2 millionth engine produced
-750,000th Civic produced
-1.5 millionth car produced