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Honda to compensate dealers for sales moratorium until Takata airbags fixed

Posted on March 12, 2016 2:49 pm under Automotive Defects

Honda and Acura dealers have not been selling vehicles equipped with Takata airbags since January, when American Honda ordered a so-called “stop-sale” on around 1.7 million vehicles. Though federal law only requires carmakers to stop sales on new vehicles with defective parts until they can be repaired, Chris Martin, an American Honda spokesperson, stated that it is the company’s longstanding policy to also stop sales until used cars can be repaired as well.

In order to help the Honda and Acura dealers that will have unsellable vehicles on their lot, American Honda has announced that they will begin compensating dealers by the end of the month. Honda and Acura car dealers have been particularly hard-hit by the stop-sale of used vehicles, which traditionally represent a key source of revenue when new-car stocks become depleted.

As of now, Honda has notified its dealers that the replacement components for the airbags will not be available until summer. The airbags were originally recalled over well-founded concerns that the devices could become defective, causing the airbags to randomly deploy and send shrapnel into the vehicle’s cabin. The National Highway Traffic Safety Administration (NHTSA) has linked 10 deaths to the airbag defect.