Honda's Cumulative Auto Production in Brazil Reaches 500,000 Units

June 19, 2008, Brazil


SÃO PAULO, Brazil, June 19, 2008 -Honda's automobile production and sales subsidiary in Brazil, Honda Automoveis do Brasil Ltda. (HAB), reached the 500,000-unit cumulative automobile production milestone, June 18, 2008.

HAB began auto production with the Civic model in September 1997, and added production of Fit in 2003. HAB has been supplying these models to customers in Brazil as well as customers in neighboring countries such as Argentina, Peru, and Chile. In 2006, to fulfill increasing demand for FFVs (flexible fuel vehicles) in Brazil, HAB added a FFV version of both Civic and Fit to the product lineup. The sales ratio of these FFV models to Honda's overall sales in Brazil exceeded 40% in 2007, demonstrating the popularity of these FFV models.

HAB's annual production capacity was expanded from the original 50,000 units to 100, 000 units in 2007, and will be further expanded to 120,000 units in August 2008. Also HAB started operation of engine parts manufacturing facility in May 2008. HAB is planning to produce approximately 130,000 units in 2008 including export models. Leveraging strengthened production capacity and capabilities, HAB will continue meeting customer demand in the Latin America region in a timely manner.

About Honda Automoveis do Brasil Ltda. (HAB)

Establishment: May 1996
Capital Investment: R$882.78 million
Location: Sumare, Sao Paulo, Brazil
Representative: Sho Minekawa, President
Business areas: Production and sales of automobiles
Employment: Approximately 3,000 associates
Start of Production: September 1997 (Civic)
Products: Civic, Fit
Production Capacity: (Current) 100,000 units/year (420 units/day with 2-shifts)
(From August 2008) 120,000 units (500 units/day with 2-shifts)