Honda Reports all-Time Record Sales

American Honda Motor Co., Inc. has announced record December and full-year results for Honda and its Acura Division have propelled American Honda to an all-time record year for 2004 with total sales climbing 3.0% to 1,394,398 passenger cars and light trucks. Industry analysts said this marks the 11th consecutive year of sales increases for Honda. American Honda December sales of 137,381 cars soared 30.1% over one year ago, establishing a new record for the month, and SUVs and minivan sales shot to a new single-month record of 57,762.

"It was one heck of a competitive year for the industry as a whole, but we are feeling pretty good about the outcome for Honda and Acura," stated Dick Colliver, executive VP of American Honda Motor Co., Inc. "The competition is not about to let up, but with Acura on a roll and great new products like the Honda Ridgeline truck and an all-new Honda Civic coming down the pipe, we think 2005 will be another strong year for us."

Honda reported new all-time records for December and for the entire 2004 year on the strength of record December results for Honda Accord, Civic, CR-V, Pilot and the all-new Odyssey minivan. With Civic Hybrid sales up 17.5% to 25,571 for 2004 and the addition of the all-new Honda Accord Hybrid late in 2004, sales of Honda hybrid vehicles climbed 18.6% to a new record of 27,215 units for 2004. December sales of Honda's three hybrid models soared 97.2% to 3,167 units, as total Honda hybrid sales hit 74,608 since the introduction of the Honda Insight in December 1999.

Honda FCX & City of Los Angeles Celebrate Second Year Anniversary

AMERICAN HONDA MOTORS PRESS RELEASE
American Honda has announced the second anniversary of its relationship with the city of Los Angeles in California. The city is the first customer for the hydrogen-powered fuel cell vehicle, the Honda FCX, the world's most advanced fuel cell vehicle. Honda delivered the first of its five FCX fuel cell vehicles to Mayor Jim Hahn back in December of 2002. In the intervening years, the city has operated five hydrogen-powered fuel cell Honda cars regularly, accumulating more than 25,000 miles as part of their alternative fuel fleet.

"Los Angeles is pleased to partner with Honda to lease these innovative fuel cell vehicles, which utilize emerging technology to significantly reduce energy use, clean our air and promote renewable energy sources," stated city of Los Angeles Mayor Jim Hahn. "Fuel cells have the potential to revolutionize the transportation and energy industries, and we are proud that Los Angeles will play a major role in helping to develop the next generation of clean, energy efficient vehicles."

"I would like to commend the Mayor and the city of Los Angeles for their vision and for taking this bold step toward a more sustainable energy future, and also thank them for becoming a customer of Honda fuel cell technology with the Honda FCX," stated Gunnar Lindstrom, senior manager of American Honda Alternative Fuels.

Honda currently has twelve fuel cell vehicles with customers including the State of New York, the city of San Francisco, California's South Coast Air Quality Management District, the city of Chula Vista and the city of Los Angeles.

Honda Selected as Greenest Automaker for the Third Time By Union of Concerned Scientists

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American Honda Motor Co. was chosen by the Union of Concerned Scientists (UCS) as the 2004 Greenest Automaker in the organization's biennial ranking of car and truck manufacturers' environmental performance. It is the third consecutive honor for Honda in the UCS study. Compared with the UCS's 2002 findings, Honda has increased its lead over other automakers in reducing both greenhouse gas and tailpipe emissions across the full range of its car, truck and minivan lineup.

According to the UCS, Honda extended its lead by building vehicles that produce less than half the smog-forming pollutants of the industry average and 18% less heat-trapping emissions. "Honda is in a class of its own when it comes to producing clean cars and trucks," stated David Friedman, Research Director of UCS's Clean Vehicles Program and lead author of the report. A Honda spokesman responded that "This award reflects our commitment to apply the latest technologies for reduced emissions and improved fuel efficiency across our complete product line. It's a commitment that goes to our core objective of being a company that society wants to exist."

Honda has a long history of environmental leadership including the first hybrid introduced in the U.S., the Honda Insight hybrid, and the first vehicles to meet stricter emissions standards, including the first Low Emissions Vehicle (LEV), the 1996 Honda Civic, Ultra-Low Emissions vehicle (ULEV), the 1998 Honda Accord and Super Ultra-Low Emissions Vehicle (SULEV), the 2000 Honda Accord.

60% of Honda's 2004 model cars, minivans and light trucks meet the U.S. EPA's Tier 2 Bin 5 emissions standard, well in advance of regulatory requirements. On fuel efficiency, Honda vehicles -including two Honda hybrid models (Insight and Civic Hybrid) - captured four of the top five spots in the EPA's 2004 fuel economy rankings. With the introduction of the Accord Hybrid at Honda dealerships nationwide, Honda has become the only carmaker to provide U.S. customers three distinct hybrid models and the first company to offer a V6 engine hybrid.

Honda also leads in the development of alternative fuel technologies including hydrogen fuel cells. The company's FCX fuel cell vehicle is the only Fuel Cell Vehicle (FCV) to earn certification from the EPA and CARB for regular commercial use. There are currently 12 of these zero emissions cars in operation with five different customers in California and New York. The State of New York took delivery of the first of two 2005 Honda FCX fuel cell cars that it will lease from Honda and include in its daily fleet use in Albany. The 2005 FCX is unique because it is powered by Honda's own fuel cell stack (Honda FC Stack) and is the first FCV that has the ability to start and operate in below freezing temperatures, along with improvements gains in range, fuel efficiency and performance over earlier models.

Additionally, Honda has taken a leadership role in developing the hydrogen refueling infrastructure required to support fuel cell vehicles. Honda is operating a unique experimental solar powered hydrogen fuel station at Honda R&D American in Torrance, CA. In the U.S. Northeast Honda will begin testing the second generation of its experimental Home Energy Station (HES II) developed in conjunction with partner, Plug Power, Inc. HES II is a home refueling unit that provides hydrogen from natural gas for vehicle refueling, as well as heat for domestic hot water use and electricity for the home.

Headquartered in Torrance, California, American Honda Motor Co., Inc. was founded in 1959 as the U.S. sales & marketing subsidiary of Honda Motor Co., Ltd. Honda now produces cars, minivans, SUV's and trucks, motorcycles, personal watercraft, all-terrain vehicles, lawn mowers and engines at its nine major U.S. manufacturing operations, using domestic and globally sourced parts. Honda also maintains three major R&D centers in Ohio, Los Angeles and North Carolina that design and develop many of the products sold in America. Currently, Honda employs more than 25,000 associates in the U.S.

Hybrid Honda Insight & Civic Vehicles Delayed in Use of California Car Pool Lanes

The California State Department of Motor Vehicles has confirmed drivers of the Honda hybrid Civic and Honda Insight are still unable to use California highway car-pool lanes due to a pending waiver from the federal government.

The new law will allow for the cleanest, most-fuel-efficient class of hybrids, of which only the Hybrid Honda Civic, Honda Insight and Toyota Prius currently qualify, to apply for a car-pool lane permit.

A California DMV spokesman, however, said they are currently unable to issue the permit due to a pending waiver by the federal government after congress legislated that states need a waiver to change car-pool lane rules because the lanes are funded by the federal portion of the gas tax. Complicating matters further, the DMV stated, was the fact that Ford and other American carmakers, whose hybrid car models don't currently meet the California law's 45 miles per gallon and near-zero emission standards, began lobbying to block or weaken the standards.

The number of California hybrid drivers that currently qualify for the special permits is estimated at 20,000 and is expected to reach 75,000 in the next three years.

Car Similar to Honda Fit will be Offered to American Market in 2006

Hoping to capitalize on the success of Toyota Motor Corp.'s entry-level Toyota Scion, Honda announced it will be offering a new entry level compact in the U.S. in 2006. "We are bringing a car from Japan for entry level and young people in the U.S.,'' Honda President Takeo Fukui is reported as saying in an interview recently. "The U.S. first-time buyers' market has been left 'vacant' by Honda," he added.

The compact car is expected to be smaller than the Civic model "Toyota had success in the U.S. with its Scion brand and Honda will probably succeed, too,'' one industry analyst said.

According to the U.S. Patent and Trademark Office, Honda has filed for U.S. trademarks based on the Fit compact car in 2003. The Honda Fit compact car in currently sold in Japan with either a 1.3-liter or 1.5-liter engine. The five-door hatchback was Japan's most successful vehicle model in August and September. The Fit is also sold as the Honda Jazz compact car in Europe and is also exported from Japanese production facilities. Analysts indicate these models have begun to offset impact of the popular Toyota Scion.

Honda NASCAR Program Speculated to Follow on Future Announcement of Toyota

Motorsport racing has once again stirred up speculation regarding the introduction of foreign car makers competing in the NASCAR Nextel Cup Series in the future. The growing assumption is that Honda will be following Toyota's expected announcement that they intend to compete in the Nascar Nextel Cup series as early as 2007.

No further news has been issued by Honda regarding the speculation or whether or not they will sponsor a Honda truck in the NASCAR Truck Series. However, motorsport racing insiders have indicated it could occur in conjunction with the debut of the new mass-production Honda Ridgeline truck to be launched in 2006.

Honda Motors North American Assembly Plants Expected to Reach Full Capacity by 2006

Honda Motor Co. recently announced that it expects its plants in the U.S., Canada and Mexico to reach maximum production capacity close to 2006, coinciding with the company's plans to start building three more light Honda trucks.

Honda said it will be shifting vehicle production of Honda CR-V sport-utility vehicles for the U.S. to Ohio from overseas in the United Kingdom. Adding that it will also build the new Honda Ridgeline pickup truck in Ontario Canada beginning in 2005. It's partner Acura will produce an SUV in Ohio in 2006 as well.

"The CR-V, Ridgeline and Acura SUV will fill the rest of Honda's expected capacity in North America to make 1.4 million autos annually," Honda spokesman Yuzuru Matsuno said. Adding that Honda doesn't plan to add a sixth factory in North America, where it sells the most vehicles. Matsuno stated "There is always the potential to squeeze out more from existing facilities. It's too early to think about an additional plant."

Honda Motors' Marysville and East Liberty Ohio plants will each get one of the models, stated Ed Miller, a company spokesman for Honda's North American manufacturing unit in Marysville. The two Ohio factories can make up to 680,000 autos a year. The Lincoln, Alabama plant is forecasted to reach full production of 300,000 vehicles annually in 2005. The plant builds Honda Odyssey minivans and Honda Pilot SUVs. Two plants in Alliston, Ontario make Civic cars and the Acura MDX and Pilot SUVs and is expected to be at full capacity of 390,000 units per year after the Honda Ridgeline is added," Mr. Miller said. Honda's plant in El Salto, Mexico, which builds about 30,000 Accord cars a year, is not expected to expand.

Toyota, Honda and Nissan currently hold a record 34.5% of U.S. light vehicle sales through November 2004, up from 32.8% a year earlier.

2005 Honda Pilot Includes Several New Features

HONDA MOTORS PRESS RELEASE
The 2005 Honda Pilot sport-utility vehicle offers more power and additional features. It's overall design is still based on Honda's upscale Acura MDX. The Pilot replaced the Honda Passport SUV, which was itself a retooled Isuzu Rodeo.

The Honda Pilot engine and transmission is similar to the powerful Acura MDX powertrain. Both the Pilot and MDX share a moderately long 106.3-inch wheelbase and wide track for enhanced stability.

The 2005 Honda Pilot has a third-row seat for high eight-passenger seating and features more cargo volume. Brakes have a standard anti-lock system. Front side air bags are standard. The 2005 Honda Pilot also adds a driver-seat position sensor and a passenger seat weight sensor that correlate to front air bag deployment.

Horsepower from the 2005 Pilot 3.5-liter V-6 engine has been increased from 240 to 255, offering significantly more punch from the single-overhead-camshaft 24-valve engine. Fuel economy rates at 17 mpg in the city and 22 on the highway.

The Honda Pilot EX-L versions now offers the new vehicle stability assist system. The EX-L models also offer improved sunroof with a wind deflector. EX and EX-L models come equipped with new 6-disc CD changers.

All 2005 Pilots now have a tire pressure monitoring system, magnesium frame steering wheel, driver foot rest, remote key fob, front bucket seats, factory Honda roof rack siderails, revised instrument panel with added ambient lighting, large outside mirrors and deep center console bin.