Magazine for the professional car and truck rental industry.
Issue link: https://autorentalnews.epubxp.com/i/90712
INDUS T R Y NE WS MAJOR CAR RENTAL COMPANIES ANNOUNCE RECALL LEGISLATION AGREEMENT SENS. CHARLES SCHUMER AND BARBARA BOXER HELD A NEWS conference late September to announce an agreement reached by all four major car rental companies to stop renting or selling vehicles subject to a manufacturer recall. On the call were Enterprise Holdings — which owns Enterprise Rent-A- Car, Alamo and National Car Rental — Avis Budget Group, Dollar Thrifty Automotive Group and the Hertz Corp. In August, Boxer introduced legislation in the Senate, S. 3502, the Raechel and Jacqueline Houck Safe Rental Act of 2012. The bill aimed at amending title 49 of the U.S. Code to include rental car companies. Title 49 currently only covers vehicle dealers and manufacturers. Boxer said, however, that the new proposed legislation agreed to by the companies will include revisions from these earlier bills, such as allowing temporary steps to be taken in order to remedy safety risks — should a tem- porary step be provided by the manufacturer. Another revision would also allow the sale of a recalled vehicle with a junk title for parts or scrap. In regard to the conference call, Enterprise Holdings released the follow- ing statement: "This proposed bill represents a great deal of thoughtful collabora- tion by many individuals and organizations. We believe the end result is a solution that will give consumers additional confi dence that rental cars are properly maintained and safe to drive. This was a long, complicated and protracted process. However, when all of the parties sat down at the table together, we were able to work out our differences and come up with an effective end-product that works for the long term." In the statement, Enterprise said it has "voluntarily" committed to not rent or sell recalled vehicles until the recall has been remedied. In addition, Enterprise said that it would not wholesale recalled vehicles either, "except those that are so damaged they are not drivable. In those instances, we disclose the recall to the wholesale buyer." In terms of why the company decided to announce its formal support, Enterprise said, "Because the major car rental companies had revised their recall policies years ago, we initially did not believe that federal oversight of our industry was necessary. But when car rental customers let us know that they would be more comfortable with legislation in place, we quickly changed direction and began working closely with all involved stakeholders." Hertz said that the new proposed legislation "is consistent with existing Hertz policy," and also allows the companies to continue managing the re- call and repair process. The company added, "We are committed to enacting this legislation and, of course, to continue grounding and repairing recalled cars as quickly as possible, giving our customers total confi dence that their safety is our top priority." Schumer, Boxer and Carol "Cally" Houck, who lost her two daughters in 2004 in an accident involving a recalled vehicle, commended the industry and major companies for supporting the negotiations and proposed legisla- tion. "These companies have had good standards and practices but now we can make sure everybody does," Schumer said in the call. The American Car Rental Association (ACRA) also voiced its support, stating that the organization and its member companies are in full agree- ment with the proposed safety requirements. "We have been fully involved in every meeting, teleconference and communication working with all the stakeholders to codify the standards in addressing recalled vehicles in order to have a uniform standard which provides greater confi dence to our customers," ACRA said. ACRA added that the legislation will also apply to car sharing companies. "This proposed legislation reinforces policies and practices our member companies already use to ensure that their customers rent cars that are safe to drive," ACRA stated. "It's a responsible approach that refl ects a great deal of thoughtful analysis and negotiation and we fully support this recall legislation." AAA and other organizations have also announced support of the bill. UK OEMS SIGN ON TO ELECTRONIC RECALL SYSTEM The British Vehicle Rental and Leasing Association (BVRLA) is work- ing on getting auto manufacturers to sign up for ReCare, a new and free electronic vehicle safety recall system for rental car companies operating in the United Kingdom. Launched in partnership with technology company Ebbon-Dacs, the sys- tem aims at showing all manufacturer data to a fl eet manager in one place, where vehicles subject to a safety recall will be matched up to the manufac- turer's VIN-based recall data to the fl eet's vehicles. The system also has the potential to notify drivers, but this part of the system must be purchased. As of this writing, Ford, Fiat, Mazda, Chevrolet and Volvo have signed up for the ReCare system, and several of BVRLA's rental and leasing members are now using it, according to the BVRLA. — By Joanne Tucker HERTZ AND PENSKE ENTER FRANCHISE AGREEMENT FOR MEMPHIS MARKET T he Hertz Corp. and Penske Automotive Group Inc. announced the signing of a franchise agreement in the Memphis, Tenn. market for Penske Automotive Group to join Hertz's network. This partnership, announced in September, is part of Hertz's companywide initiative aimed at increasing its presence in the off-airport car rental market and is part of Hertz's strategy to transition select corporate markets to franchisee opera- tions. "By partnering with Pen- 10 November/December 2012 ske, Hertz will be able to ac- celerate our growth in key U.S. markets and further strengthen our franchising network," said Mark P. Frissora, chairman and CEO for Hertz. "Over time, we expect to see our franchising relationship grow into other selected markets throughout the country." Upon completion of the clos- ing conditions, Penske Automo- tive Group will purchase assets of Hertz's existing Memphis market, in which Penske will operate more than 15 airport and off-airport locations. Hertz said that it will supply Penske the resources it needs to ex- pand its market presence, while ensuring that the services and products provided to customers meet Hertz's standards. "We are confi dent that the commercial and operating synergies between Hertz's car rental and Penske's car dealer- ship businesses will benefi t our dealership network and Hertz's rental operations," said Roger Penske, chairman and CEO for Penske Automotive Group. AUTO RENTAL NEWS ENTERPRISE HOLDINGS PRESIDENT, COO LISTED IN 'MOST POWERFUL BUSINESS WOMEN' Enterprise Holdings' president and chief operat- ing offi cer Pam Nicholson was featured on Fortune Magazine's list of America's 50 most powerful business women for the sixth con- secutive year. Nicholson was ranked No. 30 based on her leader- ship at Enterprise while the rental car company grew revenue and expanded glob- ally. Last year, she ranked 26th. In 2003, Nicholson was named Enterprise's COO and president in 2008. She has been with the company during its growth from just 10,000 vehicles to more than 1.2 million vehicles.