Home / Auto News / News article: Automakers, Dealers Oppose Bill on Rental Recalls - AutoGuide.com News
 |  May 21 2013, 5:01 PM

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Automakers and auto dealerships are opposing a bill that would require rental car companies to prohibit renting of recalled vehicles until they are repaired.

The argument being made by both the Alliance of Automobile Manufacturers and the National Automobile Dealers Association is that rental car companies will demand “front of the line” service, pushing normal consumers to the back of the line for recall repairs. Alliance president and CEO Mitch Bainwol believes “a broad federal mandate grounding all vehicles regardless of the nature of the recall triggers potential negative impacts that consumer notification would not.” Bainwol also believes that the bill opens the door to lawsuits from rental car companies for “loss of use” damages during recalls.

SEE ALSO: Reintroduced Bill Aims to End Renting of Recalled Cars

As a compromise, dealers and automakers believe rental car companies should inform the consumer that they are renting a vehicle that has been recalled but not repaired. Of course not all safety recalls cause a vehicle to dangerously operate, which is another side automakers and dealers are arguing. They do however, support the intent of the bill, but more noticeably for vehicles that are not mechanically sound or are unsafe to operate.

[Source: Detroit News]

  • http://www.facebook.com/tom.mikele.7 Tom Mikele

    Total BS from them. I wonder how much it will cost them in campaign/PAC donations to screw the American people and be immune from lawsuits?