---

Honda Boosts U.S. Parts Purchases Nearly 20 Percent

31 July 1997

Honda Boosts U.S. Parts Purchases Nearly 20 Percent

    TORRANCE, Calif., July 31 -- Honda purchased $6.36 billion in
auto parts and materials from U.S.-based suppliers -- a jump of 19.5 percent
-- in the fiscal year ended March 31, 1997, according to just-released
figures.
    For the previous fiscal year, Honda purchases of U.S. parts and materials
totaled $5.32 billion.  The company's growing purchases of materials, factory-
installed parts and components, and aftermarket parts from U.S. suppliers are
primarily due to increased auto production at the company's North American
plants, which produced a record 798,051 vehicles in fiscal 1997.
    Since Honda began manufacturing products in the United States nearly 20
years ago, it has steadily increased its commitment to purchasing parts from
U.S. suppliers.
    "Our annual U.S. parts purchases have increased tenfold over the past
decade," said Dave Nelson, senior vice president for Honda of America Mfg. in
Marysville, Ohio. "With the growing maturity and capabilities of our North
American operations, our partnership with suppliers in America will continue
to grow."
    Honda's auto operations in the United States include two auto
manufacturing plants and one engine manufacturing plant in Ohio: the
Marysville Auto Plant, which produces the Honda Accord; the East Liberty Auto
Plant, which produces the Honda Civic and Acura CL; and the Anna Engine Plant,
which produces engines for Accord, Civic and Acura models.
    Honda has more than 16,000 employees in the United States working in
manufacturing, R&D, engineering and marketing.  Since 1980, Honda has invested
more than $4 billion in its North American manufacturing and R&D operations.

SOURCE  Honda North America