LEGISLATION WOULD ADD NEW PENALTIES, INSPECTIONS AND REPORTING REQUIREMENTS FOR FRANCHISED DEALERS

WASHINGTON (May 22, 2013) -- NADA President Peter Welch testified yesterday before a Senate consumer protection subcommittee on S. 921, a bill concerning rental car recalls. 

During his testimony, Welch emphasized the vital role that auto dealers play in fixing recalled vehicles. 

While supporting the purpose behind the bill, Welch informed Senators that recall work can sometimes be delayed because the part needed to remedy the recalled vehicle has not yet been designed or manufactured. 

Under the bill, a rental vehicle would have to be put out of service if the part needed was unavailable. 

NADA's president cautioned Senators against regulating "multinational corporations with fleets of hundreds of thousands of rental vehicles" the same as "auto dealers with fleets of five loaner vehicles." 

Welch also raised concerns that the bill would subject dealers to new federal inspections, new federal reporting requirements and stiff new penalties.

To view the hearing, click here.