News Releases 2003

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Corporate
Japan
June 19, 2003

Honda's Response to Projected Electricity Shortages

June 19, 2003--Honda Motor Co., Ltd. today announced initiatives designed to alleviate adverse effects on the community resulting from the electricity shortages projected for this

summer in Japan. June 19, 2003--Honda Motor Co., Ltd. today announced initiatives designed to alleviate adverse effects on the community resulting from the electricity shortages projected for this summer in Japan.

Having studied the information provided by the national government and Tokyo Electric Power Company, Honda has decided to close a total of 16 factories and research centers in the Tokyo area on July 24, 2003, one of the days on which the greatest strain on power supply is anticipated. Given that a holiday had previously been scheduled for July 25, 2003, Honda will thus be able to significantly cut back on power demand for two weekdays in succession. The power savings is estimated at 92,000kW, enough to supply about 30,000 households. 

To reduce impact on production, the missed work time will be made up on Saturday, August 2 or Saturday, September 20, depending on the facility. Power demand is lower on weekends, so no strain on supply on these days is anticipated. 

In addition, all facilities are implementing other ongoing energy conservation measures. In particular, use of lighting is being minimized, and room temperatures are being adjusted to reduce use of electricity in air-conditioning. Honda is also rescheduling equipment inspections, which require temporary shutdowns, from winter to summer. At company headquarters, use of lighting is being minimized and room temperatures are being set at energy conserving levels. The net energy savings of these and other measures is estimated at approximately 10,000kW, enough to supply about 3,300 households. 

Further, power consumption at major R&D facilities during the peak hours of 1pm to 2pm, or in some cases 1pm to 4pm, will be reduced by some 2,000kW. And if requested, Honda will reduce power use by up to 4,650kW at a number of facilities at times of emergency in keeping with an emergency adjustment contract. 

Coexistence with the community is basic to Honda's environmental policy. Since 1997, Honda has been expanding 'Green Factory' activities, aiming to reduce the burden on the environment by reducing energy consumption and eliminating factory waste disposal. 

In its approach to energy shortages, Honda is seeking to reduce energy consumption in its daily activities in every possible way. Honda also continues to introduce technologies that reduce carbon dioxide emissions and conserve energy, such as cogeneration systems and solar generation systems. In the unlikely event of a power outage, Honda is prepared to use it's own power generation equipment to minimize its impact.