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Honda Motors to compensate its U.S. dealers over Takata airbags

Citing an internal notice by Honda to its dealers, Automotive News has said, depreciation cost of unsold vehicles will be reimbursed by Honda.

As per a news report which appeared in Automotive News, Honda Motor Co. will be compensating U.S. dealers the depreciation cost of vehicles they cannot sell due to the sizeable recalls arising out of the potentially faulty Takata air bag inflators.
Furthermore, Honda Motors will also provide additional financial assistance to dealers to offset the floor-planning costs resulting from the temporary suspension of sales at Acura and Honda dealers reported Automotive News citing a notice Honda Motors sent to dealers this month.
As per the news agency the reimbursement plan will kick in only during the last week of March. The claim procedure is however not finalized.
Earlier in January, Honda Motors America had ordered a stop sale of 1.7 million used and new vehicles for its models from 2007 to 2015.

Debashish Mukherjee

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