Honda Achieves Record High Monthly Production in North America and the U.S.

Tokyo, Japan, Sept 27, 2005 - (JCN Newswire) - Honda Motor Co., Ltd. today announced production, Japanese domestic sales, and export results for the month of August. Honda achieved a new monthly record for production in North America, and coupled with increased production in Asia and Europe, led to August records for overseas and worldwide production.

Domestic production in August declined slightly by 2.6% compared to the same month a year ago as the result of a decline in exports and domestic sales. Overseas production in August increased 20.1% compared to the same month a year ago, achieving an all-time high for August, due to increased production in the North America, Europe and Asia regions. In North America, production increased 20.6%, led by a 28.2% rise in U.S. production, compared to the same month a year ago. In addition to the second line in the Alabama plant reaching its full capacity, Honda also increased U.S. production of Civic and Accord. Production of 126,367 units in North America and 89,253 units in the U.S. represents Honda record highs for any month. Due to the major increase in overseas production, the worldwide total also set an all-time high for the month of August.

Total domestic sales in August declined 6.7% compared to the same month a year ago. Step WGN was Honda's best-selling car for the month and the industry's fourth best-selling model in August on sales of 8,130 units. The Life and Fit, with sales of 8,046 and 7,723 units, respectively, were Honda's second and third best-selling models. Sales of Honda's all-new Airwave compact station wagon, continues to be strong, ranking as Honda's fourth best selling model in August with 5,007 units. Despite strong sales of newly introduced models including the all-new Step WGN and Airwave, overall sales fell compared to the same month a year ago, due to stabilizing demand for models such as Fit, Edix, Life, and Odyssey.

Total exports in August declined 2.1% compared to the same month a year ago, the first decline since August of last year. Exports to Europe declined by 14.1% due primarily to the start-up of exports of Jazz (Fit in Japan) from a new Honda plant in China as well as to the upcoming model year change for the Accord series. Exports to Asia also declined due to the Civic series full model change.