FOR IMMEDIATE RELEASE	ENR

MONDAY, JUNE 8, 1998                                                                                                                                  (202) 514-2008

                                                                                                                                                                                 TDD (202) 514-1888

									  EPA (202) 260-4355

								    USA-DC (202) 514-6933




AMERICAN HONDA AGREES TO $267 MILLION SETTLEMENT


	 
TO RESOLVE CLEAN AIR ACT VIOLATIONS


Largest Clean Air Act Settlement in History





	WASHINGTON, D.C. -- American Honda Motor Co., Inc. ("Honda")
will spend $267 million to settle allegations that it violated
the Clean Air Act by selling vehicles with disabled emission
control diagnostic systems, the Justice Department, the
Environmental Protection Agency, and the California Air Resources
Board ("CARB") announced today.  The settlement is the largest
ever under the Clean Air Act.  It includes $12.6 million in civil
penalties -- the largest civil penalty in Clean Air Act history.




	"This settlement is good for the environment and good for 
American consumers," said U.S. Department of Justice Attorney
General Janet Reno. "It will help eliminate thousands of tons of
exhaust emissions from more than 1.6 million vehicles across our
nation.  And it will help save Honda owners money because they
will get an early warning that their car needs repair."




	Carol M. Browner, EPA Administrator said, "Today's
settlement is proof that this Administration is vigorously
enforcing the Clean Air Act to ensure the protection of public
health and the environment for all Americans."




	The United States alleged that Honda disabled the misfire
monitoring device on 1.6 million 1996 and 1997 model year
Accords, Civics, Preludes, Odysseys, and Acuras, as well as 1995
Honda Civics. The complaint also alleged that Honda failed to
report this fact when applying for Certificates of Conformity,
which allow for vehicles to be legally sold if they meet federal
emission standards.

	

	The misfire monitoring device is part of an enhanced
computer system, known as the "On-Board Diagnostic System
("OBD")," which checks a vehicle's emission performance when the
vehicle is in use.  When the misfire device is disabled during an
engine misfire, the system's malfunction indicator light will not
operate.  Because the vehicle's owner is unaware that the engine
needs to be serviced, increased exhaust emissions of hydrocarbons
and damage to the vehicle's catalyst may occur.




	Under an agreement filed today with the U.S. District Court
for the District of Columbia, and a related agreement between
Honda and CARB, Honda will extend the emissions warranty for all
affected models to 14 years/150,000 miles, provide an engine
check and any emissions-related repairs needed between 50,000 and
75,000 miles of use, and provide a free tune up between 75,000
and 150,000 miles of use, at a cost to Honda of at least $250,000
million.  In addition, Honda will spend, under the federal and
State agreements, $17.1 million, including $12.6 million in civil
penalties -- the largest ever under the Clean Air Act -- and $4.5
million to implement environmental projects to reduce pollution.







	"The settlement we announce today vindicates the Clean Air
Act's goal of protecting our environment while avoiding a long,
costly lawsuit," said Wilma A. Lewis, U.S. Attorney for the
District of Columbia.  "We stand ready to ensure that those who
violate environmental laws are held accountable and prosecuted
whenever the facts warrant such action."




	Honda cooperated with EPA and DOJ during the investigation.




	Stressing the importance of a vehicle's on-board diagnostic
system, EPA noted that auto mechanics rely on the diagnostic
system to find and correct engine problems. If vehicle
manufacturers do not fully comply with the OBD rules, problems
may be overlooked and the results could be harmful to the
environment and costly to the consumer. State emission regulators
also rely on the data stored on this diagnostic tool to identify
emission problems.  




	If Honda's violations had been left undetected, EPA
estimates that more than 8,000 tons of hydrocarbons would have
been emitted into the atmosphere by misfiring cars. Hydrocarbons
are a component of ozone, which can aggravate respiratory
conditions such as asthma.




	A notice of the proposed settlement will be published in the
Federal Register, beginning a 30-day public comment period and
must be approved by the court.




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