Honda, Nissan to claim benefits from state-run trade insurance.
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.
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|Publication:||Japan Transportation Scan|
|Date:||Oct 22, 2001|
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