Magazine for the professional car and truck rental industry.
Issue link: https://autorentalnews.epubxp.com/i/90712
ED I T OR ' S CORN ER RECALL LEGISLATION: SOME THOUGHTS FROM AND FOR THE 7% Independent car rental companies need to understand the changes blowing in the wind, while letting their voice be heard. O BY CHRIS BROWN ON SEPT. 27, SENS. CHARLES SCHUMER AND BARBARA Boxer held a news conference to announce an agreement with the major car rental companies (Avis Budget Group, Dollar Thrifty Automotive Group, Hertz Corp. and Enterprise Holdings, including National and Alamo) and the American Car Rental Association (ACRA) to stop renting or selling vehicles subject to a manufacturer recall. The agreement paves the way for The Raechel and Jacqueline Houck Safe Rental Car Act to be passed in the U.S. Senate before the end of the year. A parallel House bill is in the works. This process appears to be fi nally coming to an end, and brings with it an end to the state of limbo that has beset the industry for the past two years. Legislation will ensure codifi cation of prac- tices and policies across the board. This will bring transparency on recalls to all rental companies and rental customers, who have signaled they are in favor of legislation. These are good things. Yet while the majors make up 93% of the total market, the industry represents the other 7%, the franchise and independent operators. They have questions and offer input as well. Those smaller operators who buy used fl eet have concerns about recall notifi cations failing to reach the new vehicle owners, as processing the transfer of title can take two to six weeks — and up to four months in states with backlogs. To this point, operators should understand the legislation states that the rental company will be required to ground affected vehicles no later than 24 hours after receiving the notice. In other words, the rental company must receive a notice for the rule to take effect. Operators have brought up logistical con- cerns, such as if a recall is issued without a cor- rection, or if necessary parts are unavailable. The bill as written today addresses this in part. It al- lows for a temporary action — if one is specifi ed by the manufacturer — to be taken to make the vehicle safe to operate until parts are available. The present bill also contains an exception al- lowing a wrecked vehicle under recall to be sold "with a junk title" for parts only. But while it is a good time to raise these 6 November/December 2012 AUTO RENTAL NEWS legitimate concerns, it is also a time to strengthen best practices together. The 7% should be aware of the majors' recall policies, ones that are al- ready in place. There are procedures to automati- cally lock out the recalled vehicle from the reser- vations system. If those vehicles do somehow get rented, it is a cause for termination. The software programs used by a majority of the independents and franchisees have this functionality as well. Use it. Operators should use the National Highway Traffi c Safety Administration's recall website to search any make, model and model year for existing recalls. The site also emails weekly bul- letins for updates on the latest recalls. Fleet diversifi cation will minimize the poten- tial for large portions of fl eet becoming affected by a single recall. Strengthening relationships with dealers will help to ensure that recall work gets done. Most importantly, operators need to review present policies now to make sure they are in compliance with the proposed legislation. Peter Chapman of Alaska Auto Rental raised some of those concerns and also offered those best practices. Chapman represents the true spirit of the independent in his attitude toward pending legislation and his ability to comply. "Consumer safety should be the goal of every car rental company," he writes. "Attainment of this goal can be compatible with operating a profi t- able small, independent car rental company." The concerns of Chapman are not falling on deaf ears. ACRA represents not only the 93% but also the 7%. ACRA has a voice in this legislative process, and has worked with legislators and consumer and safety groups to form the bill. "The fact that our industry, under the um- brella of ACRA, crafted an agreement that was reasonable shows what can happen when the industry works together with the government as opposed to going [about it] individually," writes Frank Colonna of Triangle Rent A Car. Through ACRA, 100% of the industry can work to enact sensible legislation to prohibit the rental or sale of a rental vehicle subject to a safety recall.