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NADA: Rental Car Bill Could Cause Headache for Dealers

May 23, 2013

WASHINGTON —Peter Welch, president of the National Automobile Dealers Association, warned members of a Senate consumer protection subcommittee Tuesday that a proposed bill concerning rental cars recalls would subject dealers to new federal inspections, new federal reporting requirements and stiff new penalties.

Under S. 921, a rental vehicle would have to be put out of service if the part needed was unavailable. 

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. 

He 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.” 

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