Honda to offer financial help to US dealers over Takata airbag recalls image

Honda plans to give to its US dealers some financial aid to ease up a bit the depreciation burden of the unsold cars because of the Takata airbag crisis, Automotive News reports.

All automakers hit by the massive scandal triggered by Takata’s defective airbags have suffered significant financial losses over the recalls they had to issue. Honda has been deeply affected by the inflators crisis and the costs are about to go even higher. The Japanese carmaker plans to compensate all its dealers in the United States for depreciation costs of vehicles they cannot sell because of the safety campaigns, Automotive News reports. It will also offer financial assistance to offset floor-planning costs resulting from the temporary suspension of sales at Honda and Acura dealers, according to a company notice sent to dealers this month and obtained by the publication. Honda informed dealers that the compensation plan would go into effect the week of March 28 and is scheduled to end on July 29, but it has not finalized the claim process, the notice said. In January, American Honda ordered a stop-sale on 1.7 million new and used cars and light trucks, including the popular CR-V crossover, from model years 2007-2015

The company has not made any estimates on the value of its financial aid because it will depend on how long unsold vehicles are in dealers’ hands before they can be repaired and delivered. “American Honda has taken steps to assist US dealers with some of the implications of the most recent Takata airbag inflator recall, for which replacement parts may be delayed until this summer,” a Honda spokesman told Automotive News.

Via Automotive News