Honda to compensate U.S. dealers for losses over air bag recalls: Automotive News

Wed Mar 9, 2016 11:45pm EST
 
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(Reuters) - Honda Motor Co (7267.T: Quote) 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 7312.T, 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, Automotive News said.

(Reporting by Chang-Ran Kim; Editing by Miral Fahmy)

 
A logo of Honda Motor Co is seen outside the company's dealership in Tokyo, Japan, January 27, 2016. Picture taken January 27, 2016. REUTERS/Yuya Shino