>>He said that he hasn't heard anything about Honda stopping production,
The folks on the board don't mean stopping production forever (like it sounds like your dealer means)--they mean stopping production for the year. When you are only selling 2000 cars in a year, it doesn't make sense to keep the line dribbling 10 cars a day all year, it makes more sense to run the line full tilt until your sales projection is fulfilled, then shut it down or use it to make your other cars that actually...um...sell.
>>he has to be telling the truth becuase I already put the deposit down and have done all the paperwork for financing.
Ahh yes, no dealer could ever be dishonest or stupid enough to take a deposit for a car he couldn't provide! That could NEVER happen!!!

There is a sales theory that you should do whatever you can to get someone closer to buying *something, anything* rather than let them walk out the door, even if you know you can't fulfill their order.
After a few months go by and he has been shining you on, who knows, maybe he'll get word of an incoming 2005 "...in just a few more weeks--you've waited this long, you might as well get a brand new one for this model year--it will just be 2-3 weeks, I promise..."
>>He tried to get me a car from another dealership, but he said that everyone is sold out.
That indicates that production is indeed stopped, because how else could they sell out of a car that sells so poorly? Don't get me wrong, I love the insight and want to buy one myself (as soon as I can justify getting rid of my beautiful 47MPG TDI Beetle), but the sales numbers are horrible. It is a very bad reflection on people in general and americans specifically that a nice little car that gets 70MPG can't sell.
PB