July 10, 2002 - Honda Motor Co., Ltd., has announced that it has signed a letter of intent with Guangzhou Auto Group Corp. and Dongfeng Motor Corp. to conduct a feasibility study for a new automobile plant that will produce Honda small cars in China for export to other markets.

The plant, to be a joint investment by the three companies, will be constructed in Guangzhou. The new project is expected to begin production by the end of 2004, with an initial annual production capacity of 50,000 cars. All of these vehicles will be exported to other regions outside of China, such as countries in Asia and Europe.

The new operation will enhance its cost competitiveness by utilizing the companies' experience in automobile production and their parts procurement network, cultivated through existing joint projects, Guangzhou Honda Automobile Co.,Ltd. and Dongfeng Honda Engine Co.,Ltd.

Guangzhou Honda began production of the Accord in March 1999. Earlier this year, it began production of a second model based on the Japanese version of the Odyssey minivan. Guangzhou Honda produced 51,153 vehicles in 2001 with a production forecast of 59,000 Accords and Odysseys for 2002.