Tokyo, May 18, 2001 --- Honda Motor Co., Ltd. today announced that it plans to equip its European Civic with 1.7-liter Isuzu diesel engine, starting production in November 2001. The diesel engine will be manufactured by Isuzu Motors Incorporated at its Polish plant (Isuzu Motors Polska). Honda is also developing a new-generation 2-liter class diesel turbo engine and is aiming to mass-produce the engine for the next generation European Accord to be launched in 2003. With respect to the new 2-liter diesel engine, Honda has reached a basic agreement with Isuzu for technical support in the development process leading up to mass production. The percentage of diesel passenger vehicle sales in the European market has been increasing year by year and Honda plans to strengthen the competitiveness of its flagship model Civic and next generation Accord vehicles by equipping them with diesel engines.

In December 1999, Honda reached an agreement with General Motors Corporation (GM) to supply GM with Honda's V6 ULEV engine and transmission, and Isuzu, a GM Group company, to provide Honda with diesel engines for Honda vehicles bound for the European market. The contract this time to supply diesel engines is in accordance with that agreement and stipulates that Isuzu will provide approximately 5,000 engines to Honda through March of 2002 and another 15,000 engines annually commencing in April for Civics to be sold in the European market. Production of the Civic will be at Honda's U.K. subsidiary, Honda of the U.K. Manufacturing, Ltd. (HUM, located in Swindon, Wiltshire, England).
The engine that Isuzu will supply Honda with is a newly developed 1686cc DOHC diesel equipped with a common rail high-pressure fuel injection system. It is exclusively designed for the Civic and provides a maximum output of 100ps (value based on in-house testing), while still delivering excellent fuel economy.

Honda is currently developing a new-generation 2-liter class diesel turbo engine with an aluminum engine block based upon technological know-how gained in the development of its gasoline engine aluminum engine blocks. The development process is now shifting towards mass production with plans to install the engine in the next generation European Accord in 2003. Utilizing its expertise in engine technology, Honda will strive to develop a next-generation engine with top-level environmental friendliness and powerful performance.