Honda to com­pen­sate US deal­ers for losses over air bag re­calls

The Pak Banker - - COMPANIES/BOSS -

TOKYO: Honda Mo­tor Co is pre­par­ing to com­pen­sate U.S. deal­ers for de­pre­ci­a­tion costs of ve­hi­cles they can­not sell be­cause of the mas­sive re­call linked to po­ten­tially faulty air bag in­fla­tors made by Takata Corp, Au­to­mo­tive News re­ported. Amer­i­can Honda Mo­tor will also pro­vide fi­nan­cial as­sis­tance to off­set floor-plan­ning costs re­sult­ing from the tem­po­rary sus­pen­sion of sales at Honda and Acura deal­ers, the in­dus­try pub­li­ca­tion said, cit­ing a com­pany no­tice sent to deal­ers this month. Honda told deal­ers the re­im­burse­ment plan will go into ef­fect in the fi­nal week of March, but that it had not fi­nalised the claim process, the pa­per said. In Jan­uary, Amer­i­can Honda or­dered a stop-sale on 1.7 mil­lion new and used ve­hi­cles from model years 2007-2015.

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