2. Honda relies on external suppliers for the provision of certain raw materials and parts
Honda purchases raw materials and parts from numerous external suppliers, and relies on certain
suppliers for some of the raw materials and parts which it uses in the manufacture of its products.
Honda's ability to continue to obtain these supplies in an efficient and cost-effective manner is sub-
ject to a number of factors, some of which are not within Honda's control. These factors include the
ability of its suppliers to provide a continued source of raw materials and parts and Honda's ability to
compete with other users in obtaining the supplies. Loss of a key supplier in particular may affect our
production and increase our costs.