Honda to Make Engines for Jets with GE

TOKYO (Reuters) - Honda Motor Co, Japan's second-biggest auto maker,
said on Monday it had signed a deal with General Electric Co of the
United States to make engines for light business jets.

Under the agreement, the two companies will develop Honda's new HF118
turbofan jet engine, which was mounted on an experimental small
business jet called the HondaJet.

Honda said in December that it had succeeded in test-flying the
HondaJet in the United States, taking a step toward its long-term goal
of entering the aircraft business.

The six-seat HondaJet is the world's first business jet made
completely by an auto maker and is powered by a lightweight,
low-emission turbine engine that Honda has been developing since 1999.

Toyota Motor Corp, Japan's biggest auto maker, also grabbed headlines
in 2002 by making its first test run of a prototype aircraft, but the
plane's engine came from a different manufacturer.

Developing aircraft has been one of Honda's goals for the past four
decades, and a dream held by its late, legendary founder, Soichiro
Honda.

Honda, which started off building motorcycles and in 1986 began
researching small business jets, has said the HondaJet offered at
least 40 percent better fuel efficiency and more cabin space than
existing jets of the same class.

The 41-foot long jet has a flight range of 1,270 miles and can cruise
at a maximum speed of almost 500 miles per hour. It can seat up to
six, including the pilot, Honda said in December.

Earlier last year, Honda announced separate plans to look into the
possibility of selling a next-generation piston aviation engine that
it had been developing since 2000, with partner Teledyne Continental
Motors Inc, a unit of U.S. electronic components maker Teledyne
Technologies Inc.

Entry into the aviation business could present big opportunities for
Honda, which says its piston aviation engine is superior to those
currently available in terms of weight, fuel efficiency, power output
and emissions.

Shares in Honda were up 0.67 percent after the announcement, in a flat
market.