The North American Automobile Trade Association (NAATA) has asked the United States Justice Department to determine whether Honda Motor Co. Ltd. is violating antitrust regulation by refusing to honour warranties on Canadian cars resold in the US, writes Monica Dobie.
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DaimlerChrysler has now copied Honda’s move, as has General Motors.
Brian Osler, president of the Canadian NAATA , said: “These measures of cancellation of warranty coverage are meant to stop competition and stop independent dealers from buying cars in Canada and reselling them cheaper to Americans.”
Osler told just-auto.com that the move was triggered by the large increase in US market sales of new and used cars and trucks that had originally been earmarked for Canadian consumers; this was estimated at 200,000 last year, compared with 24,000 in 1997.
He said US cars are pricier because Canadians have less disposable income and that the American passion with cars (that Canadians do not share) pushes up prices in the United States. A decision from the Justice Department is expected within one year.
