Printer Friendly

Honda, Nissan to claim benefits from state-run trade insurance.

TOKYO, Oct. 19 Kyodo

Honda Motor Co. and Nissan Motor Co. plan to claim insurance benefits from the state-run Nippon Export and Investment Insurance (NEXI) to cover damages incurred on their car exports to China after Beijing slapped retaliatory tariffs on them following Tokyo's import curbs on three farm products, industry sources said Friday.

In April, Japan provisionally invoked its temporary ''safeguard'' import restrictions against the three products, which mostly come from China, prompting Beijing to impose retaliatory tariffs in June on Japanese products, such as automobiles.

As a result, Japanese vehicle exports to China plunged as Beijing slapped a 100% tariff on Japanese passenger cars and buses. Damages for Honda and Nissan are estimated at 2 billion yen.

If NEXI accepts the claims from Honda and Nissan, it would be its first insurance payment to a local carmaker.

Honda and Nissan have bought insurance policies from NEXI, which covers 50% of damage incurred in the event of natural disasters, diplomatic problems and other incidents beyond a company's control.

Last year, Honda exported more than 500 vehicles including the Civic sedan to China. Nissan also exports passenger cars such as the Cefiro.
COPYRIGHT 2001 Kyodo News International, Inc.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2001 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Japan Transportation Scan
Date:Oct 22, 2001
Words:192
Previous Article:ANA hikes fares to cope with higher insurance premiums.
Next Article:Suzuki, GM to launch new vehicle in Japan Nov. 1.


Related Articles
Honda becomes Japan's No. 2 automaker in 1st half.
The car behind the Toyota is now a Honda as it speeds by Nissan.
Kyocera wants export insurance to offset China tariff.
An offer you can't refuse...?

Terms of use | Privacy policy | Copyright © 2020 Farlex, Inc. | Feedback | For webmasters