August 5, 2002
Honda Canada withholds recall information to stop Canadian Hondas being sold in the U.S.
Richmond Hill, Ontario – Honda Canada has advised American importers of Canadian cars that Honda will no longer provide them with recall information. According to the North American Automobile Trade Association (NAATA), Honda’s withholding of recall information is designed to slow or stop the flow of grey market cars from Canada to the United States. U.S. Registered Importers have to determine if there are any outstanding recalls on a vehicle before it can be imported into the United States.
The sale of Canadian automobiles in the United States is a big problem for many Canadian-based automakers. Last year, U.S. Registered Importers brought in 200,074 Canadian vehicles – that’s more than 10% of Canada’s total annual vehicle sales. According to the NAATA, the dealer’s cost in the United States is often higher than the retail price in Canada. American consumers can save 20 to 35 per cent on the purchase price.
“Withholding recall information is dangerous and foolish”, says Brian Osler, President of the “Honda is putting American car owners at great risk and is creating potential liability for itself.”
“Honda, like other manufacturers, is trying to deprive American consumers from the benefits of free trade” says Mr. Osler. “Cars sold in Canada are virtually identical to those sold in the U.S. Honda shouldn’t be allowed to force people to drive around in cars with open recalls.”
Honda Canada stopped honouring warranties on imported Canadian cars about three years ago.