from AutoIndustry.co.uk

Honda cuts repair parts prices in US
7th June 2005

American Honda Motor Co. is trying to reduce the number of write-offs of Hondas in the US by cutting prices on a package of front end parts. The $1,000 price cut is “designed to reduce the number of borderline totaled Honda vehicles by making front end repairs more cost effective,” according to the Honda brochure announcing the programme.

The “Honda Collision Impact Kit Program” includes a front bumper cover, bumper beam, bumper absorber, right and left bumpers and headlights, the bonnet, and driver and passenger airbags. Buying those parts individually would cost $2,946.90 at the manufacturer’s suggested prices. Buying the parts in the package costs $1,943.55.

The program is believed to be the first action by a manufacturer in the US to cut its parts costs as a way to reduce the numbers of write-offs. (Automotive Body Repair News)

 

I don't understand what is in this for Honda. I am somewhat familiar with totaling vehicles, since I have done it twice. How is it a write-off for the manufacturer if your car is totaled? From my experience, if the cost of damages surpass a certain percentage of the overall value of the car, then it's deemed totaled and the insurance company gives you a check for the value of the car and the insurance company takes ownership of the car and most likely sells it to a salvage yard.

 

To give the appearance that Honda's are safer since they won't get totaled as often other makes? It doesn't make much sense to me either.

 

I don't get it either unless Honda intends to publicize it as another reason to buy their car. It seems pretty flimsy to me.