NHTSA Begins Probe into Car Rental Company Safety Questions

December 31, 2010 (Press-News.org) The National Highway Transportation Safety Administration (NHTSA) recently opened an investigation into rental car companies and the frequency with which they repair rental vehicles subject to a safety recall. This is the first audit conducted by the NHTSA this year.

As part of its investigation, the NHTSA has asked Ford, Chrysler and GM to provide recall and repair information for models of their vehicles that are popular among car rental companies, including the Chevy Malibu, the Chrysler Sebring and the Ford Fusion. In particular, the NHTSA is looking to see when the recall was issued and how long it took for rental companies to take their vehicles in to have them serviced.

The Executive Director for Auto Safety, one of the two consumer safety groups that pushed for the NHTSA investigation, has claimed that rental companies do not immediately take vehicles subject to recalls out of service and instead wait until it is "convenient" to have the cars repaired. Rental companies have denied this and claimed that vehicles subject to recalls that put consumer safety at risk are put on hold until they are repaired.

The problem is that car dealerships seem to be deciding for themselves when a recall affects consumer safety. For example, Enterprise has said that its official policy is to immediately pull vehicles only when the recall involves the risk of suddenly losing control of the car, seatbelt failures or fire hazards. In other cases, the recalls are tended to "as soon as possible."

Currently, federal law requires car dealerships that have vehicles subject to safety recalls on their lots to repair the vehicles before selling them. However, there is no similar requirement for car rental companies.

Audit in Response to Wrongful Death Case against Enterprise

The NHTSA's audit was initiated in part due to a recent wrongful death case in California against Enterprise Holdings, the largest car rental company in the US. In October 2004, sisters Raechel and Jacqueline Houck rented a Chrysler PT Cruiser from an Enterprise Rent-a-Car. They later died in Monterey County, California after their rental car caught fire, causing them to lose control and collide with a semi-truck.

The 2004 PT Cruiser they had rented had been recalled four months earlier due to the possibility of power steering fluid leaking into the engine compartment, causing a fire. Even though the recall was issued in June 2004, Chrysler did not send official notices of the potential danger to PT Cruiser owners until late September.

The Houcks' parents filed a wrongful death suit against Chrysler and Enterprise, but Chrysler was dropped from the suit after filing for bankruptcy. During depositions, an Enterprise regional manager admitted that the company routinely rented out vehicles that had been recalled but not yet repaired rather than turn customers away for not having enough rental cars. Enterprise eventually admitted they acted negligently and accepted responsibility for the sisters' deaths. A California jury awarded the Houcks $15 million in damages.

After the Houck accident, two consumer groups - the Consumers for Auto Reliability and Safety and the Center for Auto Safety, petitioned the Federal Trade Commission (FTC) to issue a requirement making safety recalls mandatory rather than discretionary for car rental companies. The NHTSA audit is part of an information gathering effort before the federal government decides whether any action should be taken against rental companies.

Conclusion

If you were in a car accident that was caused by a defective rented or leased vehicle, contact an experienced attorney today. Car manufacturers, sellers and renters have a duty to provide consumers with safe motor vehicles. When they fail to uphold this important duty and someone is injured, the victim has the right to compensation for his or her injuries.

A lawyer experienced in helping victims of motor vehicle accidents can explain your legal options. For more information, contact a personal injury attorney today.

Article provided by Law Offices of Corey Leifer, P.A.
Visit us at www.leiferlaw.com