Updated: USA Today Reports Hertz ‘Struck an Agreement’ in Recall Legislation

According to USA Today, Hertz has “struck an agreement” with the Sacramento-based Consumers for Auto Reliability and Safety for recall potential legislation that would give the National Highway Traffic Safety Administration (NHTSA) oversight of recalls in the car rental industry. Currently, the NHTSA does not have jurisdiction to regulate recalls in the industry.

Sens. Charles Schumer and Barbara Boxer plan to introduce legislation later this month after Boxer withdrew her amendment to the NHTSA reauthorization bill in December that included recall requirements for car rental companies.

The USA Today article says that Hertz is "asking" for government regulation, and Hertz spokesperson Rich Broome stated that government oversight of recalls in the car rental industry matches with the company’s policy. Enterprise spokesperson Laura Bryant said the company has made significant changes to its recall policies, calling the legislation “unnecessary.” John Barrows, spokesperson for Avis Budget Group, said the legislation unfairly targets rental companies, since it doesn’t include taxi and limousine operations.

In follow-up with Auto Rental News, Broome made the following statement:

"Hertz supports federal legislation which would require car rental companies to take recalled vehicles out of service until repaired. Such a law conforms to Hertz's longstanding policy to stop renting these vehicles until they are fixed and, importantly, the legislation allows the car rental companies to continue managing the recall process efficiently, as we do today. If regulation is necessary, a federal law is the only viable option for a company like Hertz which operates nationwide and has thousands of vehicles crossing state lines every day."

For the full article from USA Today, click on the URL: http://www.usatoday.com/money/industries/travel/story/2012-02-20/Hertz-agrees-to-government-oversight-of-recalled-cars/53180734/1

Comments

  1. John Schaffer [ March 3, 2012 @ 10:10PM ]

    Sweep Broome out of there!!

  2. Mark Rush, Ph.D. [ March 12, 2012 @ 12:37PM ]

    I am glad to see that Hertz is stepping up and doing the right thing. It will help their business in the long run as informed consumers will vote with their wallets.

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