---

ARB Announces Settlement With Honda

8 June 1998

ARB Announces Settlement With Honda to Extend Emission Warranties

    SACRAMENTO, Calif., June 8 -- The California Environmental
Protection Agency's Air Resources Board (ARB) today announced it has reached
an agreement with Honda to extend emission-control system warranties to
14 years/150,000 miles for 290,000 1995-97 Honda vehicles sold in California.
The action will remedy a software flaw in the vehicles' emission-control
computers that could lead to higher emissions as the vehicles age.  Honda also
will pay $6 million in penalties, including $3.5 million to fund various
environmental and air-quality research programs.
    "Honda has been innovative in its efforts to lower emissions from
automobiles," ARB Chairman John Dunlap said.  "They have now acknowledged
limitations in this vehicle computer emission-control system, and have worked
closely with ARB to reach a remedy that ensures no adverse impact on air
quality and provides vehicle owners with long-term consumer protection."
    The original warranty on the emission-control systems was three
years/50,000 miles, or seven years/70,000 miles for higher-priced parts.
    California regulations require automakers to equip vehicles with a
second-generation on-board diagnostic system (OBD II), a small computer which
tracks engine and emission-control performance and flashes a warning if
something goes wrong that could increase air emissions.  ARB staff, while
performing on-road testing of Hondas, found that improper design greatly
delayed or prevented the OBD II system from detecting engine misfires, a
problem which causes increased air emissions.
    The federal government began a national investigation as a result of the
ARB's findings and the Department of Justice has reached a separate settlement
with Honda in connection with 1.6 million 1995-97 vehicles sold nationally.
    In addition to extending its emission-control system warranties, Honda
agreed in its settlement with ARB to provide owners of 1995-97 vehicles with
two separate free inspections of the OBD II system and free repair of any
emission-related parts.  Honda will also provide free oil changes and free
ignition system tune-ups to owners of the vehicles.  Vehicle owners will be
notified by mail of these provisions, which are transferable to subsequent
owners.
    "Low emissions and system durability are the two keys to our vehicle
emissions-control strategy," said ARB Chief Deputy Executive Officer Tom
Cackette.  "Honda's agreement to extend emission warranties to 150,000 miles
proves that lifetime system durability, at the heart of ARB staff's LEV2
proposal, is the right approach."
    Environmental and research projects to be funded from the settlement
include:  $1.2 million for air-quality research projects; $1.1 million in the
form of 25 Honda electric vehicles and chargers to demonstrate the usefulness
of electric vehicles; $350,000 each to UC Davis, UC Riverside and the Health
Effects Institute for vehicle and health research; $100,000 for programs to
buy back high-polluting lawn and garden equipment; and $50,000 to the Western
Partnership for Environmental Technology and Education in Sacramento.
    The Air Resources Board is a department of the California Environmental
Protection Agency.  ARB's mission is to promote and protect public health,
welfare and ecological resources through effective reduction of air pollutants
while recognizing and considering effects on the economy.  The ARB oversees
all air pollution control efforts in California to attain and maintain health
based air quality standards.