Automakers, Dealers Oppose Bill on Rental Recalls

Jason Siu
by Jason Siu
CAR RENTAL FACILITY OPENING AT AIRPORT – TUKWILA – 050912 Rental car company logo's to help customers find their cars. Pre-Opening celebration of the new 420 million dollar car rental facility near SeaTac airport. 120770

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]

Jason Siu
Jason Siu

Jason Siu began his career in automotive journalism in 2003 with Modified Magazine, a property previously held by VerticalScope. As the West Coast Editor, he played a pivotal role while also extending his expertise to Modified Luxury & Exotics and Modified Mustangs. Beyond his editorial work, Jason authored two notable Cartech books. His tenure at AutoGuide.com saw him immersed in the daily news cycle, yet his passion for hands-on evaluation led him to focus on testing and product reviews, offering well-rounded recommendations to AutoGuide readers. Currently, as the Content Director for VerticalScope, Jason spearheads the content strategy for an array of online publications, a role that has him at the helm of ensuring quality and consistency across the board.

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  • Stephen Marcus Colmar Stephen Marcus Colmar on May 21, 2013

    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?

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