Consumer In The Middle: Honda withholds recall information - blames gray market

RICHMOND HILL, ON, Aug. 2 - Honda Canada Inc. has advised American importers of Canadian cars that Honda will no longer provide them with recall information. Honda claims that this action is needed to stop the flow of gray market cars from Canada to the United States. Honda stopped honouring warranties on imported Canadian cars about three years ago.

United States Registered Importers are licensed to certify that Canadian vehicles meet American safety and emissions standards. Last year, U.S. Registered Importers brought in 200,074 Canadian vehicles. Registered Importers have to determine if there are any outstanding recalls on a vehicle before it can be imported into the United States.

"Withholding recall information is dangerous and foolish", says Brian Osler, President of the North American Automobile Trade Association (NAATA). "Honda is putting American car owners at great risk and is creating potential liability for itself. Honda's new policy is going to end up killing children and other innocent people.

Honda vehicles are more expensive in the United States. The dealer's cost in the United States is often higher than the retail price in Canada. American consumers try to buy cars from Canada because they can save 20 to 35 per cent on the purchase price.

"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."