Honda-The Power of Dreams
Honda to Strengthen Mini-vehicle Business
Yachiyo Industry to acquire land to build new facilities

TOKYO, Japan, July 18, 2007 – Yachiyo Industry Co., Ltd., a Honda consolidated subsidiary in Japan, announced it has determined to acquire the land adjacent to its Yokkaichi Factory to build new production facility in the effort to further strengthen its mini-vehicle business.

The purpose of the land acquisition is to establish the optimal production system for mini-vehicles, including engines and parts, in order to further improve the competitiveness of mini-vehicles that the company produces.

Although the detailed plans are still to be finalized, the company plans to begin with the establishment of an engine assembly facility, which will enable the company to achieve synchronous production of automobiles including the engine and the complete automobile, which in turn will help the company improve the efficiency of production and logistics.

About Yachiyo Industry Co., Ltd.
Established: August 1953

Capital: JPY 3,685.6 million (50.34% Honda Motor Co., Ltd.)

Location: Saitama (Sayama)

Representative: Motoastu Shiraishi, President & CEO

Business activities: Production and sales of motorcycle parts and automobile parts, Production of automobiles (Honda's mini-vehicles: Life, Zest, Vamos, Vamos Hobio, Acty Truck, Acty Van)

Major operations: <Japan> Saitama (Sayama), Shizuoka (Hamamatsu), Mie (Suzuka, Yokkaichi, Kameyama), Tochigi (Sakura)
<Overseas> U.S.A., Canada, Thailand, Vietnam, China

Consolidated employment: 6,408 associates

Consolidated net sales: JPY 353,083 million (fiscal year ended March 31, 2007)

Ordinary profit: JPY 9,861 million (fiscal year ended March 31, 2007)

< Factories in Japan >
  Location Major Production Items
Kashiwabara Factory Sayama <Automobile parts>
fuel tank, sun roof, stamped metal parts,
plastic parts (instrument panel, bumper, etc)
Suzuka Factory
Suzuka plant
Suzuka <Automobile parts>
fuel tank, stamped metal parts,
plastic parts (instrument panel, bumper, etc)
Suzuka Factory
Kameyama plant
Kameyama <Automobile parts>
fuel tank, repair parts
Suzuka Factory
Hamamatsu plant
Hamamatsu <Motorcycle parts>
Engine parts, fuel tank, etc
Yokkaichi Factory Yokkaichi Automobiles (Honda’s mini-vehicles)
Stamped metal parts for automobiles