Automotive Industry Shifts: Honda Imports, Dealers Avoid Air Bags, and More

Honda is responding to a surge in demand for its vehicles by importing up to 60,000 Japan-built Accords and diverting 60,000 fewer Accords from its Ohio plant to Japan. Meanwhile, despite federal regulations allowing the installation of air bag cutoff switches, many dealerships are refusing to perform the service, with only 997 confirmations of completed work out of 34,621 applications.

Lexus has revamped its used-car certification program to offer a simplified, more generous warranty and easier customer experience. Ford is negotiating to increase its stake in Kia Motors Corp., potentially acquiring a 51% majority share. Additionally, Nissan Diesel Motor Co. is set to export pickup trucks to the US to compensate for losses in Southeast Asia, while Isuzu Motors America has begun shipping American-made Rodeo sport-utilities to Japan.

Key Takeaways:

• Honda will import up to 60,000 Japan-built Accords in the 1999 model year, diverting 60,000 fewer Accords from its Ohio plant to Japan.
• Only 997 confirmations of completed air bag cutoff switch installations were received out of 34,621 applications, suggesting many dealerships are not performing the service despite federal regulations.
• Lexus has revamped its used-car certification program with a simplified, more generous warranty and easier customer experience.
• Ford is negotiating to increase its stake in Kia Motors Corp., potentially acquiring a 51% majority share.
• Nissan Diesel Motor Co. plans to export pickup trucks to the US to compensate for losses in Southeast Asia.
• Isuzu Motors America has begun shipping American-made Rodeo sport-utilities to Japan.

Statistics:

• 60,000 Japan-built Accords will be imported by Honda in the 1999 model year.
• 34,621 air bag cutoff switch applications have been submitted to NHTSA, with only 997 confirmations of completed work.
• 50% of Kia Motors Corp. is owned by Ford and affiliate Mazda Motor Corp.
• 17,000 American-made Rodeo sport-utilities will be shipped to Japan by Isuzu Motors America.

Sources:

• "Honda to Import Some Accords" by Automotive News, [no date provided]
• "NHTSA said it approved 34,621 cutoff-switch applications through May 18" from The Washington Post, [no date provided]
• "Lexus gets cracked on used-car certification" by Automotive News, [no date provided]
• "Ford eyes bigger stake in Kia" from Automotive News, [no date provided]
• "Isuzu Ute to Ship Cars to Japan" from Reuters, [no date provided]