NADA, automakers oppose car rental recall bill
NADA and the Alliance of Automobile Manufacturers testified in support of one another at a Senate subcommittee hearing last week against a bill that would require rental car companies to take recalled cars out of service until they have been repaired. Supporting the bill are the National Highway Traffic Safety Administration, the car rental association, and a host of consumer advocate groups.
Not all safety recalls render a vehicle unsafe to operate, said NADA Chairman Peter Welch in written testimony. We agree that recalls which require immediate repairs to systems such as steering, fuel delivery, accelerator controls or other crucial components should not be rented to the public until the defect is remedied. But many recalls are for more minor problems or problems that only apply in certain regions, he added.
Welch also called the bill overly broad in that it regulates auto dealerships that operate small rental or loaner fleets in the same manner as multi-national rental car giants. Many dealers who have just one model in their loaner fleet could suffer economic hardship as a result of the bill, NADA and others pointed out.
Another objection voiced by both NADA and the automakers: Dealers might have to wait in line behind rental car companies to get recall parts. This point drew a rebuke from Sen. Barbara Boxer (D-Calif.) an advocate of the legislation: If these rental car companies get first dibs at the fix, how does that hurt my (consumer) constituents? Who do you think is renting these cars?
Indeed, senator, but who do you think makes possible the consumers ability to get convenient, readily available rental car transportation when the his/her car is in for repairs? Oh, thats right, its the dealership! Stay tuned.
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