Honda Plans New $40 Million Investment in Alabama Engine Facility

Aluminum Die Cast Expansion Will Add 20 Jobs

LINCOLN, Ala.—Honda Manufacturing of Alabama, LLC, (HMA) today announced plans for a $40 million expansion of its engine facility that will add 20 new jobs and additional casting of engine components for Honda V6 engines that power the Honda Odyssey and the Honda Pilot.

The expansion will add more than 41,000 square feet to the facility and will include the addition of new high-pressure and low-pressure aluminum die cast equipment; high-pressure and low-pressure aluminum melt furnaces; low-pressure heat-treat equipment; and additional sand mold capabilities.

“Our Alabama facility continues to play a strong role in Honda’s North American engine and vehicle manufacturing operations. This new investment will further advance the production capabilities of our associates,” said Takashi Yamamoto, HMA president and CEO. “The dedication and commitment of our associates to build quality products for our customers allows us to build upon our established manufacturing operations and has made this expansion possible.”

Equipment installation and the start of production resulting from this latest expansion will be staggered. The new high-pressure operation is expected to begin mass production in the fall of 2007. The additional low-pressure expansion is expected to begin operation by mid-2008.

HMA’s new investment comes as the company completes an earlier $70 million expansion of its machining operation. That expansion added 100 jobs and capabilities for machining engine crankshafts and connecting rods. Those operations will both be on-line before the end of the year.

HMA will mark the fifth year anniversary of the start-up of vehicle and engine production in Alabama, November 14, 2006. Honda’s $1.3 billion facility now has the capacity to produce 300,000 vehicles and engines per year with a current team of more than 4,500 associates. Since the start of production in 2001, HMA has built more than 900,000 vehicle and engines. On its current pace, the facility will build its one-millionth vehicle and engine before the end of this calendar year.

HMA is the sole production source of the Odyssey minivan and shares production responsibility for the Honda Pilot sport utility vehicle with Honda of Canada Manufacturing in Alliston, Ontario.

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