[basky]

Originally Posted by mayankk

take a look at the video first.

Originally Posted by libranof1987

Huh?! I don't quite understand.
Honda has mentioned that they are scrapping (=destroying) the flood-affected cars.

Originally Posted by vb-san

What you mean? My understanding of scrapping is to destroy the impacted cars.

Sorry. My mistake. When I checked the link was not working (possibily because of MBlaze speed then) and I jumped the gun and assumed wrong.

But BOY! What a reaction - like Sodium metal in water.

Originally Posted by vb-san

You even managed to put a price!

Yes, it was the other post with a 8 lakh mystery figure.

Insurance would have paid substantially for scrapping the cars. Crunching it is good publicity anyway.

[RadiantKarma]

Originally Posted by basky

Insurance would have paid substantially for scrapping the cars.

Bang on! Also, it does not make any sense for Honda to put such cars in the market as they would create massive service head-aches for the manufacturer as well, apart from tarnishing the invaluable and impeccable reputation of Honda. Even without insurance, Honda would not take such a chance for a mere 1000 cars.

Crunching it is good publicity anyway.

Make virtue out of necessity - eating the cake and having it too!

[basky]

Originally Posted by RadiantKarma

Even without insurance, Honda would not take such a chance for a mere 1000 cars.

Leave the Honda name out and take corporates (and Governments) as a whole. Very often their stated ideals and policies do not match the reality on the ground. Yes they try very hard to do it very well and better than the competition. But there are always shortcuts they take to keep their profitability high and it is a tight rope walking exercise.

Again this depends on the publicity which surrounds them. If they do something, they would not want to be caught out and exposed. They then take the high moral ground and use that publicity to good effect - like the crunching of the cars - very dramatic. I am sure the negative publicity of the 8 lakh cars must have weighed in the minds of the corporate in deciding to kill two birds with one stone.

There are no saints out there. The sinner is merely the guy who gets caught!

[deetjohn]

Good move by Honda. I read that the vehicle identification numbers of all the 1055 cars will be made public on the website of Honda (Thailand) to ensure transparency.

Originally Posted by GTO

If you haven't already, this fascinating story & pictures source is a MUST-READ:

Thanks a lot for the link GTO. What a great story!

Mazda scrapped the entire fleet of 4,703 cars because they had spent two weeks at a 60-degree angle and they couldn't be sure that something isn't wrong with them. A good lesson there. Shows the might of lawsuits in the US.

[ACM]

Good,

I guess Honda is possibly totally insured for this loss. And they better do it this way than risk warranty claims or other liability suits later for their cars.

Nope this material will not make it to spares market.

Nice action overall.

[Kishan Shah]

Originally Posted by ACM

Good,

I guess Honda is possibly totally insured for this loss. And they better do it this way than risk warranty claims or other liability suits later for their cars.

Nope this material will not make it to spares market.

Nice action overall.

Scrapping the car was a good decision,but there are some parts on those that could have been (should have been) salvaged like head lamps tires,plastic body parts etc ,destroying everything would be a unwise business move.

[W.A.G.7]

Ouch! Hurts to see the cars getting crunched in the machine. But i guess there is no other way out. The cars are too much damaged even to be little salvagable. And scrapping only 1055 cars wouldn't affect Honda much. In this case, the cost of repairing/refurbishing the cars would have exceeded the cost of scrapping. Not to mention the damage to the reputation if these cars would have been sold after repairing.

I feel it is a good decision by Honda.

[basky]

Originally Posted by Kishan Shah

there are some parts on those that could have been (should have been) salvaged, destroying everything would be a unwise business move.

1. Time is money - reclaiming may cost more than getting back to selling new cars
2. Fear of Bad publicity
3. Feel good factor by scrapping
4. Insurance claim would have been reduced - net loss may have increased.

Yes, if we got hold of it we would have stripped it like Piranhas.

[Kishan Shah]

Originally Posted by basky

1. Time is money - reclaiming may cost more than getting back to selling new cars
2. Fear of Bad publicity
3. Feel good factor by scrapping
4. Insurance claim would have been reduced - net loss may have increased.

Yes, if we got hold of it we would have stripped it like Piranhas.

I don't think insurance covers damages of that scale and to its fullest value,and even if the bank pays for the damaged cars than the bank or the financial institution will be the owner so scrapping them would cost more money(this are called business pickles ).And only god knows whether that all bits of those cars have been scrapped or not.

PS:I didn't understand what you meant by reclaiming may cost more.

[basky]

Originally Posted by Kishan Shah

I don't think insurance covers damages of that scale and to its fullest value

Cost of parts and production costs apportioned, I think. No taxes will be involved except reclaims. All companies are insured against these types of calamities.

Originally Posted by Kishan Shah

PS:I didn't understand what you meant by reclaiming may cost more.

Manpower costs in removing parts may be more than the cost incurred in fitting as all work will be ad hoc and not part of planned and efficiently run assembly operation. Even if work is outsourced, there will be a good amount of supervisory time lost. The net effect of lower insurance receipt, additional waste of manpower time balanced with slightly better salvage receipts may not add up right.

Additionally, the positive publicity received for the crunching operation is a bonus which will not be matched by higher receipts from any salvage operation.

[suhaas307]

We don't need to be worried about any of those cars landing here. What is made there, generally stays there. Am I right?

It's the parts from Thailand that get imported to our country, and her is where it is assembled for our market. So it's not just the cars, but everything else - like spares and parts that have been affected by the floods - that needs to be destroyed. And they're doing just that.

Kudos to Honda.