A-HNS-02262016-3

Honda 2007-2015 Multi-Model Driver’s Airbag Inflator Recall
Dealer Q&A – Updated 02.26.16
Stop Sale/Safety Recall: Honda 2007-2015 Multi-Model Driver’s Airbag Inflator
Dealer Q&A – Updated 02.26.16
GENERAL
What is the cause of the stop
sale/safety recall?
In certain vehicles, the driver’s (front) airbag inflator could
produce excessive internal pressure during airbag
deployment. If an affected airbag deploys, the increased
internal pressure may cause the inflator casing to rupture.
Metal fragments could pass through the airbag cushion
material, possibly causing injury or fatality to vehicle
occupants.
Has a root cause been identified?
Multiple studies are ongoing by Honda, Takata, other
automakers and NHTSA into the root causes of Takata airbag
inflator ruptures.
One of these studies completed the first phase of its analysis
and released their initial findings on February 23, 2016:
The Independent Testing Coalition, a partnership of 10
automakers, including Honda, announced that an
independent engineering firm (Orbital ATK) investigating the
root cause of a defect tied to certain Takata airbag inflators,
has traced the root cause to a combination of three factors:
1. The presence of pressed phase stabilized ammonium
nitrate propellant without moisture-absorbing
desiccant
2. Long term exposure to repeated high temperature
cycling in the presence of moisture, and
3. An inflator assembly that does not adequately
prevent moisture intrusion in high humidity.
The results of the investigation apply solely to inflators
subject to National Highway Traffic Safety Administration
(NHTSA) recalls 15-E040 to 15-E043, which use a propellant of
non-desiccated phase-stabilized ammonium nitrate (PSAN).
Honda is currently evaluating this root cause determination
along with other reliable data in our ongoing analysis of the
root cause of ruptures of Takata airbag inflators. If Honda
determines that a safety defect exists in any of its vehicles
not yet subject to recall, we will take swift action in the
interest of our customers' safety.
Have there been any ruptures of this
type of inflator in the market in
Honda has not received any reports of Takata PSDI-5 inflator
ruptures in the market in Honda or Acura vehicles worldwide.
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Dealer Q&A – Updated 02.26.16
Honda or Acura vehicles?
Which models are affected by the
stop sale/safety recall?
When will a list of affected VINs be
available?
The recall includes specific VINs from these Honda models:
• 2007-2011 Honda CR-V
• 2007-2014 Honda Ridgeline
• 2009-2014 Honda Fit
• 2010-2014 Honda FCX Clarity
• 2010-2014 Honda Insight
• 2011-2015 Honda CR-Z
Check VIN status to see if a specific VIN is included in the
recall.
As of February 15, 2016, affected VINs have been determined
and vehicle eligibility can be confirmed through VIN status
inquiry. Any unsold vehicle shown to be eligible for service
bulletin 16-016 will need to remain on stop sale until the
vehicle is repaired. Vehicles that no longer show as eligible
for the bulletin can be sold without further action, assuming
no other open recalls apply. Customer-facing sites
(www.recalls.honda.com, safercar.gov) have also been
updated with the list of eligible VINs, which may drive
inquires about eligibility or repair. At this time, replacement
parts to repair the recall condition are not available.
With all the airbag-related recalls
announced lately, why are Honda
and Acura seemingly the only brands
with a Stop Sale?
The stop sale on new vehicles is federally mandated.
American Honda issued the stop sale on used vehicles in
alignment with our company policies and in the interest of
customer safety, which is our top priority.
Why did American Honda call for a
Stop Sale when there have been no
injuries or deaths related to this new
recall and other automakers have
not issued a Stop Sale?
The stop sale on new vehicles is federally mandated.
American Honda issued the stop sale on used vehicles in
alignment with our company policies and in the interest of
customer safety, which is our top priority.
Since there have been no ruptures of
this type of airbag inflator in Honda
or Acura vehicles, should a dealer or
customer not be worried about the
issue?
Everyone affected by this recall should take the risk of airbag
inflator rupture seriously. Honda has determined that the
Takata airbag inflators included in this recall contain a safety
related defect.
What is the repair?
Replace the driver’s airbag inflator with a different inflator
type.
Are replacement parts available?
The necessary replacement parts are currently not available.
American Honda expects to receive the first small shipment
of parts by the end of April, but this shipment will not include
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Honda 2007-2015 Multi-Model Driver’s Airbag Inflator Recall
Dealer Q&A – Updated 02.26.16
every part number required by the recall. We anticipate that
recall repairs will begin this summer.
Why will there be such a long delay
for replacement parts?
Honda plans to replace all of these recalled inflators with new
parts from an alternative supplier, free of charge. It will take
some time to conduct the engineering and testing of
replacement inflators in order to ensure that they will fit in
the existing airbag modules originally installed in these
vehicles and perform to specification. Additionally, due to the
large number of vehicles involved, some of the delay will be
caused by efforts to ramp up production for this purpose.
Since you have a supply of
replacement inflators already, why
can’t the existing replacement
inflators be used for the PSDI-5?
The driver front inflator designs and specifications are
different between vehicles included in the latest recall and
the earlier recalls.
Do the replacement inflators contain
ammonium nitrate?
For the driver front airbag inflator recall announced in
February 2016, Autoliv will supply the replacement inflators.
None of those replacement inflators will contain an
ammonium nitrate propellant.
For the Takata airbag inflator recalls announced before
February 2016:
The replacement airbag inflators being supplied by Takata do
contain ammonium nitrate in their propellant formulas.
The replacement inflators being supplied by Autoliv, Daicel
and TRW do not contain ammonium nitrate.
What actions should dealers take?
1. Ensure that every dealership associate is aware of this
situation and that customer-facing associates provide
transparent information to customers.
2. Refer to your eResponsibility report and VIN inquiry to
determine which units in your inventory are affected by
this safety recall.
3. Run a VIN status check on all vehicles brought into your
Service department to determine if they are affected by
any recall.
4. For affected vehicles, replace the driver’s airbag inflator
with a different inflator type. Any new or used units in
dealer stock must be repaired per service bulletin 16-016,
Safety Recall: Takata Driver’s Airbag Inflator once the parts
and repair information is available.
5. Offer concerned customers of affected vehicles a loaner or
rental vehicle until a replacement part is available and
their vehicle is repaired.
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Dealer Q&A – Updated 02.26.16
CUSTOMER COMMUNICATIONS
When will customers be notified of
this recall?
Initial notifications will be mailed to customers beginning
mid-March with a completion date by March 29, 2016.
American Honda is also communicating to customers in the
following ways:
• February 3 – Press release was issued to the media
• February 4 – Alert was posted on the Honda Owners site
• February 15 – VIN search became available at
recalls.honda.com and recalls.acura.com
What will be communicated to
customers in the mailing?
Customers will initially be advised that their vehicle is
affected by a safety recall and that parts will be made
available beginning in summer. Once sufficient parts are
available, customers will be notified by mail again to visit
their dealer for inflator replacement, with priority on older
models and regions affected by high absolute humidity.
What should dealers tell customers
whose vehicles show as included in
the recall in VIN Status Inquiry?
If the vehicle shows as affected in VIN Status Inquiry, please
let the customer know the following:
• Your vehicle is part of an open recall requiring a
replacement of the driver’s airbag inflator.
• You will receive an initial notification in the mail in March.
• There are currently no replacement parts available for this
recall. Replacement parts are expected to begin arriving at
dealers this summer, but it will take some time before
enough parts will be available to repair every vehicle.
• You will be notified by mail again when parts become
available for your vehicle and you’re encouraged to visit an
official Honda dealer for repair at that time.
SALES
Can dealers sell vehicles with
affected VINs to retail customers?
No. All affected vehicles are on stop sale and cannot be sold
until the inflator is repaired with a counter-measured part.
Can dealers wholesale affected
units?
No. Dealers cannot sell any vehicles affected by this recall
until the required repair is completed.
The stop sale of used vehicles under
recall is an American Honda-imposed
policy; it is not federally mandated.
Given this, why couldn’t a dealer sell
a used car under recall?
Although American Honda cannot stop a dealer from selling a
used vehicle under recall, our dealer agreement states that:
“Affected vehicles should not be sold until the inspection and,
if necessary, repair has been completed. Should an
unrepaired vehicle result in any claim because of the required
recall repair, the dealership will be solely responsible to the
claimant, and will be required to defend and indemnify
American Honda for any resulting claims.”
Will Honda provide dealers floorplan
On February 11, 2016, Honda announced the Honda Trade4
Honda 2007-2015 Multi-Model Driver’s Airbag Inflator Recall
Dealer Q&A – Updated 02.26.16
and/or depreciation assistance for
recalled vehicles in dealer inventory?
In-Assistance Program for dealers:
• Depreciation assistance for current new, used and
Certified Pre-Owned (CPO) affected units in inventory as
well as future used and CPO units.
o Assistance will be effective as of a vehicle’s stop
sale date or dealer acquisition date through the
campaign completion date.
o Dealers will be reimbursed based on the variance
in Blackbook average value during that period.
• Floorplan assistance for current new, used and CPO
affected units in inventory as well as future used and CPO
units.
o Assistance will be effective as of a vehicle’s stop
sale date or dealer acquisition date through the
campaign completion date.
o Dealers will be reimbursed at the Prime rate
based on the Blackbook average value.
o Dealers will be reimbursed for Floorplan
insurance based on the Blackbook average value.
• Claiming systems for this program are currently in
development and should be available within the next few
weeks. Thank you for your patience.
• Reimbursements will apply to all affected units as of the
stop sale date.
• Please refer to future bulletins for official program
details.
• Please note that this program ends on July 29, 2016 for
vehicles included in the 2007-2015 Multi-Model Driver’s
Airbag Inflator recall (16-016) and on July 23, 2016 for
vehicles included in the 2008-2010 Accord SRS Unit
Replacement safety recall (16-006).
How frequently will Honda
reimburse dealers for depreciation,
floorplan and insurance expenses?
We’re reviewing this issue and expect to have information for
you in the near future. Thank you for your patience while we
work to determine a reasonable and fair solution.
Does the floorplan assistance and
depreciation assistance apply to
recalled vehicles purchased from
other OEM dealers on trade?
Yes. The floorplan and depreciation assistance for Honda
dealers covers all affected vehicles acquired by the Honda
dealer in the normal course of doing business.
Will American Honda compensate
dealers for storage costs resulting
from the stop sale?
American Honda will not reimburse dealers for storage costs;
however we are compensating dealers at Prime for floorplan
assistance, which should help to defer other costs incurred by
the dealer.
Will Honda provide a lease extension
On February 11, 2016, Honda announced the Lease
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Dealer Q&A – Updated 02.26.16
offer for current Honda customers?
Extension Program/ Honda Promise Program
• Dealer optional 6-month lease extension for
maturities ranging between February 1, 2016 and
June 30, 2016.
• Complimentary 12,000 miles, 12-month, zero
deductible Honda Care® Vehicle Service Contract
Vehicle Service Contract for extended leases.
• $500 Promise Loyalty offer toward Cap Cost
Reduction or Down Payment Assistance for any new
and not previously reported sold Honda vehicle
leased or financed through HFS upon fulfillment of a
6-month lease extension.
• Please refer to future bulletins for official program
details.
Will American Honda compensate
dealers for insurance costs resulting
from the stop sale?
Yes. As part of the Honda Trade-in Assistance Program,
American Honda will reimburse dealers for insurance costs
related to the storage of affected vehicles. We’re reviewing
an appropriate formula and expect to have information for
you in the near future. Thank you for your patience while we
work to determine a reasonable and fair solution.
What should dealers do when
customers want to trade in a vehicle
included in the recall?
Dealers will have the option to take vehicles in on trade and
utilize the floorplan and depreciation assistance program
American Honda announced on February 11, 2016.
What should dealers do when
customers coming off lease want to
purchase their recall-affected lease
vehicle?
Per the lease agreement, customers have the right to
purchase their vehicle through Honda Financial Services
(HFS). Customers may purchase their vehicles in the same
manner as they do today.
Alternatively, dealers can ground the vehicle and sell it back
to the customer. The off-lease vehicle can only be sold back
to the originating lessee, with an acknowledgement signed by
the customer and dealer stating the vehicle is under the
recall. The dealer cannot sell the vehicle to a different
customer. The Recall Off-Lease Acknowledgement form can
be found in the iN message sent to dealers on 2/25/2016.
Please contact your Dealer Relations Manager if you have any
questions.
American Honda’s loaner car policy remains available and
also applies to customers who purchase off-lease vehicles.
Can dealers purchase lease vehicles
at end of term?
Honda dealers may purchase affected lease vehicles at end of
term through the Vehicle Inter-Dealer Purchase System (VIPS)
or scheduled Honda-only auctions.
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Honda 2007-2015 Multi-Model Driver’s Airbag Inflator Recall
Dealer Q&A – Updated 02.26.16
The off-lease vehicle can only be sold back to the originating
lessee, with an acknowledgement signed by the customer
and dealer stating the vehicle is subject to the airbag recall.
The Recall Off-Lease Acknowledgement form can be found in
the iN message sent to dealers on 2/25/2016. Please contact
your Dealer Relations Manager if you have any questions.
Dealers are prohibited from selling the vehicle to a different
customer until the repairs are completed.
Are affected vehicles purchased
through VIPS eligible for the trade-in
assistance program?
Yes.
How quickly will HFS retrieve their
cars if the dealer does not buy it
after end of term?
HFS understands the importance of having end of term lease
vehicles picked up in a timely manner after they have been
grounded through VIPS. HFS works with our auction partners
to have vehicles picked up within our service level agreement
of (3) three business days.
If I don’t floorplan with AHFC, will I
still receive floorplan assistance?
Yes. The floorplan assistance program will be available for all
dealers regardless of your current floorplan provider.
Would HFS consider extending
special floor lines for the amount
equal to the frozen inventory to a
non-HFS flooring dealer, so they can
try and continue to conduct regular
business?
At this time, there is no plan to extend special floorplan lines
to non-HFS flooring dealers. Dealers should be working with
their current floorplan lenders to open or increase their Used
Line Flooring, if needed. If Honda dealers are considering
moving their floorplan financing to HFS, please have them
contact their Dealer Relations Manager for details.
Can a Honda dealer retail an Acura
vehicle included in the recall?
No. Dealers should not retail any Honda or Acura vehicle
under recall. Dealers should check Honda VINs on iN and
should check Acura VINs on recalls.acura.com.
Will American Honda provide
assistance to Honda dealers for
Acura vehicles included in the recall?
Yes. The assistance programs announced on February 10,
2016 will also apply to CPO and used Acura vehicles.
Is Honda planning to suspend
current pull-ahead programs?
No. Based on dealer requests and feedback that there is new
car availability to support these programs, Honda will not
suspend the current pull-ahead programs.
What happens if a dealer wants to
recertify a recall-impacted vehicle
and incurs additional reconditioning
expenses?
Honda will reimburse a $200 PDI/inspections fee on all
impacted vehicles listed in the dealer’s Certified Pre Owned
inventory on January 30, 2016.
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Dealer Q&A – Updated 02.26.16
Payment will be made once the recall has been completed
and the vehicle is RDR’d. Claims for reimbursement will be
made through the Honda Performance Center. A bulletin with
details will go out regarding the claim process.
Payment will be made following the process through the
Dealer Performance Center.
If a dealer sold a certified pre-owned
vehicle under recall prior to the stop
sale date, can he/she still RDR the
vehicle?
In cases where dealers sold and delivered recalled Certified
Pre Owned vehicles to customers but did not RDR the vehicle
prior to the stop sale, the Auto Remarketing team will assist
you in completing the RDR manually. We are working with
our IT department to implement a system workaround to get
the RDRs processed. In the meantime, please submit the
necessary documents to us for review and approval:
• CPO Vehicle Exception Request Form (complete
Section 2. Delinquent Certified RDR)
• Completed 182-Point checklist
• Copies of Repair Orders
• A Customer signed copy dated on or before January
30, 2016 of any of the below documentation:
o Sales Agreement or Bill of Sale
o Retail Sales Contract or Lease Agreement
o Finance Agreement (if applicable)
Please send those documents to:
[email protected].
Upon receipt and approval of the documents, Auto
Remarketing will scan them and store in PDF file. Once units
are approved and the system workaround in place, the dealer
notified via email that they can RDR the vehicle.
SERVICE
Is there a service bulletin for this
safety recall?
We have issued bulletin 16-016, Safety Recall: Takata Driver’s
Airbag Inflator to support this safety recall. Once parts are
available, the bulletin will be revised to include warranty,
parts and repair procedure information.
What verbiage should be included
on the Repair Order?
“Customer advised that:
The vehicle is subject to a recall affecting the driver’s front
airbag inflator. Redesigned driver airbag inflators are not
available for installation at this time. Once redesigned parts
are available, the registered owner of the vehicle will receive
notice to bring the vehicle in for replacement of the
component.”
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Dealer Q&A – Updated 02.26.16
If a customer receives a loaner vehicle or third-party rental
for alternative transportation until recall repairs are
completed and wishes to maintain possession of the vehicle
under recall until parts are available, also ensure that the
customer executes the stand alone Vehicle Retention Owner
Indemnification Agreement provided through iN.
If a customer’s airbag has deployed,
should the dealer replace the airbag
with available parts?
Honda cannot replace or supply a replacement Driver SRS
module for these affected vehicles at this time; alternate
transportation should be offered to the customer until SRS
modules containing updated inflators become available.
How will parts be prioritized for
waiting customers?
Due to the regional nature of high temperature and high
absolute humidity, customer mailings will be conducted in
high absolute humidity regions first, with the earliest model
years receiving priority. Honda will notify dealers once this
activity begins. Once parts are available, we will focus initially
on high humidity markets.
Note: Fourteen U.S. states and territories designated by Honda as High
Absolute Humidity regions: Alabama, California, Florida, Georgia, Hawaii,
Louisiana, Mississippi, South Carolina, Texas, Puerto Rico, the US Virgin
Islands, Saipan, Guam and American Samoa.
Will this new recall impact efforts
related to the previous Takata
inflator recalls?
Should dealers provide concerned
customers with a courtesy or rental
vehicle?
No. This is a new safety recall. With your great support,
American Honda has replaced about 50% of the inflators
identified in previous recalls. We have sufficient parts in
stock for all these vehicles affected by the older recalls and
we’re continuing our outreach efforts to those customers.
There’s plenty of work to do between now and the arrival of
the new recall parts to continue this effort, so we ask that
you please maintain your current staffing levels. When a
customer contacts your dealership, please be sure to clearly
identify which recall the vehicle falls under. We DON’T want
to mistakenly turn away vehicles associated with the older
recall.
Courtesy/Rental Cars
Yes. Honda Dealers should provide a courtesy vehicle to any
customer who requests one while their vehicle is awaiting
repair. Authorized HCVP dealers must follow HCVP Guidelines
for Courtesy Vehicle issuance.
An exclusive service available only from authorized HCVP
dealers is the ability to issue an HCVP unit to titled owners
under the age of 25 of affected vehicles. This policy also
applies to customers who purchase vehicles coming off lease.
Please see the HCVP Guidelines or Service Operations Manual
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Dealer Q&A – Updated 02.26.16
for details.
Can courtesy vehicles included in the
recall be loaned out to customers?
No. Please see HCVP Guidelines in section 15 of the Service
Operations Manual.
How can dealers confirm if a
courtesy vehicle is included in the
recall?
Courtesy vehicles must be checked individually via iN
“Service” > “Vehicle Information” > “VIN Inquiry.”
Can a customer receive a courtesy or
rental vehicle from the dealer and
still keep his/her recall-affected
vehicle?
Should you receive a request for alternate transportation
from a customer affected by this recall where a campaign
part is not available for the repair, please follow the
procedures outlined in iN Message: “Stop Sale/Safety Recall:
2007-2015 Multi-Model Driver’s Airbag Inflator- Alternate
Transportation Procedures Where Parts Are Not Available For
the Repair” sent on February 12, 2016.
How will Honda calculate
depreciation and floorplan
assistance on HCVP vehicles
removed from service as a result of
the stop sale?
HCVP units affected by the recall and removed from loaner
service after February 2, 2016, are eligible for depreciation
and floorplan assistance. The “start point” for these units will
be the actual payoff amount made to HFS as shown on the
Dealer Financial Services Statement of Account. On the date
of the campaign completion, depreciation assistance will be
paid based on the difference between the HFS payoff amount
and the Blackbook (Average) value minus any applicable
dealer/lease/finance cash. On the date the vehicle is RDRd,
any dealer/lease/finance cash available will be paid, per our
current policy.
Will Honda provide HCVP Assistance
Cash to support dealers in
transferring ground stock into their
HCVP service fleet?
Honda has announced the following Marketing Bulletins to
provide assistance for dealerships that have an immediate
need for additional loaner units stemming from the recent
airbag recall/stop sale:
HP-I79
HP-I80
HP-I81
HP-59
HP-60
Can a dealer use a third party rental
car company and get
reimbursement?
Yes, Honda will provide dealers reimbursement for use of
third party rentals. The preferred process is to use HCVP
vehicles when possible to maximize customer satisfaction.
Dealers should negotiate extended term rates with rental
agencies if necessary.
How frequently will Honda
Honda’s policy is to reimburse dealers for rental vehicle
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Dealer Q&A – Updated 02.26.16
reimburse dealers for rental vehicle
expenses?
expenses as part of the campaign completion claim. Requests
for exceptions to the policy will be reviewed by zone
management on a case-by-case basis.
Can a customer keep a Honda
Courtesy Vehicle Program vehicle for
longer than 30 days if parts are not
yet available to repair his/her
vehicle?
No. Per the requirements of American Honda’s HCVP
insurance carrier, the customer cannot rent or be loaned a
Honda Courtesy Vehicle Program vehicle for longer than 30
days. At 30 days, the vehicle has to be inspected and/or
exchanged for another vehicle and the customer must sign a
new Rental Agreement. This enables to dealer to complete
any required service maintenance.
Can a dealer expand his/her fleet
size beyond the Honda Financial
Services floorplan limit due to
customer demand related to the
recall?
Please contact your DSM to make HCVP fleet increase
requests. The Sales Zone Manager will work in conjunction
with Honda Financial Services to review requests on a caseby-case basis.
Can dealers pull recall-affected
Yes.
vehicles out of the courtesy car
program without penalty prior to the
minimum in-service requirement?
Will customers be required to
continue to make their monthly
payment to Honda Financial Services
while driving a courtesy vehicle?
Yes.
Can dealers convert existing
inventory into HCVP units?
As a reminder, any 2015 or 2016 model currently in dealer
new vehicle inventory can be converted into an HCVP unit.
Please contact your zone office for details.
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