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.May 12, 2004
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This Week:

• Porsche Releases Initial Details of All-New 911 Models for Model Year 2005

• Mercedes Car Group: Successful New Products and Record Demand for E-Class

• Production Ends At Historic Dearborn Assembly

• DaimlerChrysler AG and Hyundai Motor Company Announce Realignment of Strategic Alliance

• Toyota Announces Management Changes at Toyota Motor North America, Inc.

• New Volkswagen convertible with innovative roof system to be launched in 2006

• Honda Announces Major Investment in the Marysville Auto Plant

• Porsche(R) Names New Design Chief; Veteran Harm Lagaay to Retire

• Chrysler Group Announces Changes in Product Development

• BMW Group Sales Rise 10.3% In April

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Honda Announces Major Investment in the Marysville Auto Plant
 

MARYSVILLE, Ohio - Honda of America Mfg. unveiled plans today to construct a $123 million paint facility at its Marysville Auto Plant, continuing Honda's commitment to a cleaner environment, flexible and efficient manufacturing, and high-quality products for its customers. This is the largest single investment among a series of renovations and expansions at Honda's two auto plants in Ohio. Honda's 25-year commitment to manufacturing in Ohio has grown to more than $6 billion over the years.

Construction begins this month on the facility, which replaces the oldest of the plant's original paint lines. The Marysville Auto Plant was the first Japanese auto plant in America when it began producing Accord sedans in November 1982. Honda began U.S. manufacturing with a motorcycle plant in 1979.

Housed in a 234,000-square-foot expansion, the paint facility will introduce waterborne paint systems to the Marysville plant when it goes into full operation in mid-2006. This, along with new paint systems developed by Honda, is expected to reduce emissions by 41 percent. Investment in high- efficiency ovens, air recycling systems and highly efficient variable drive motors should reduce energy use by 34 percent.

Honda of America also announced today that it is constructing a 20-million-gallon pond system behind the Marysville Auto Plant that will recycle rainwater to cool the plant in warm-weather months. The 7-acre pond will save tens of thousands of dollars in energy costs and significantly reduce the use of groundwater. The pond will be filled with runoff from parking lots and roofs.

Employing 5,600 associates, and with a capacity to produce 440,000 vehicles per year, the Marysville Auto Plant produces the Honda Accord sedan and coupe, and the Acura TL luxury sedan from domestic and globally sourced parts. Honda's investment in the 3.6-million-square-foot facility has grown to $2.8 billion since the plant began production in 1982.

Honda of America employs more than 13,000 associates in Ohio. Total Honda employment in the state is nearly 16,000 -- two-thirds of Honda's direct U.S. employment.

In recent years, Honda has invested hundreds of millions of dollars in its Ohio operations.

• Innovation: New weld systems and other renovations increased Honda's industry-leading flexibility at the Marysville and East Liberty plants.

• Crash research: Honda last year completed a $30 million crash-test facility at Honda R&D Americas in Raymond, Ohio.

• Engine Plant Renovation: At Honda's Anna Engine Plant, $20 million were invested in a new production line.

Since starting in Ohio, Honda's manufacturing has expanded in North America with automotive plants in Canada, Mexico and Alabama, a motorcycle plant in Mexico, an ATV and personal watercraft plant in South Carolina, and a power products plant in North Carolina.

Last year, Honda's North American operations spent more than $12.6 billion for parts and materials from 620 domestic suppliers in North America.

(May 11, 2004)